Delta Jolted By Significant Guidance Dip

Delta Air Lines, Inc. (NYSE:DAL) catalyzed an industrywide nosedive Wednesday after cutting its second-quarter guidance between 8 percent and 13 percent.

What Happened 

In the airline’s 8K, it noted a “solid demand environment producing revenue-driven earnings growth, but [a] sharp rise in fuel price pressuring near-term results.”

Delta saw a 3.5-percent plunge in share value after confessing a 50-percent year-over-year pop in fuel prices, revenue for which is not usually recaptured for six to 12 months.

Why It’s Important

The acknowledged pressures are not airline-exclusive but are rather likely to be felt by peers.

American Airlines Group Inc (NASDAQ:AAL) fell 2.5 percent, Southwest Airlines Co (NYSE:LUV) 1.6 percent, JetBlue Airways Corporation (NASDAQ:JBLU) 1.3 percent and Spirit Airlines Incorporated (NYSE:SAVE) 1.1 percent on the news.

What’s Next

Delta expects to report earnings per share between $1.65 and $1.75 this quarter, well below previous estimates of $1.80 to $2.

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