Delta Air Lines Inc. said a benchmark revenue gauge will decline more than forecast this quarter because of lower business fares in the U.S. The shares slumped.
Passenger revenue from each seat flown a mile will drop in a range of 4 percent to 5 percent, Atlanta-based Delta said Tuesday, outstripping an earlier projection for a decrease of 2 percent to 4 percent.
Delta fell 2.3 percent to $43.34 at 9:45 a.m. in New York, joining an industrywide slide. The Bloomberg U.S. Airlines Index tumbled 10 percent this year through Monday on investor concern that added seating capacity in the domestic market is damping ticket prices.
So-called unit revenue for May decreased 5.5 percent from a year earlier, Delta said. It attributed about half the decline to foreign exchange pressure, lower surcharges in some international markets and a drop in domestic yields, or average fare per mile.