Delta earnings fall far short of expectations because of high fuel costs and service problems
CNN
Delta Air Lines earned its biggest profit since the start of the pandemic in its latest quarter, but higher fuel costs, labor issues and service problems caused it to earn far less than investors expected.
The company reported Wednesday that it earned $735 million in the second quarter. Analysts surveyed by Refinitiv had expected earnings of $1.1 billion for the company.
Average fuel costs for Delta rose to $3.82 a gallon, up 37% from the first quarter and up 82% from the final quarter of 2021. Delta had previously told investors it expected to pay between $3.20 and $3.35 in the second quarter. It now expects to pay slightly less in the third quarter, with fuel costing between $3.45 and $3.60 a gallon.
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