Airline Stocks Fall After Delta Cuts Outlook
- Carriers need fare gains to offset rising pay, fuel costs
- Industry contends with fallout from Trump’s travel ban
A Delta Air Lines Inc. plane at Salt Lake City International Airport in Salt Lake City, Utah, on Dec. 23, 2016.
Photographer: George Frey/BloombergThis article is for subscribers only.
U.S. carriers fell the most in five weeks as Delta Air Lines Inc. cut its forecast for a key revenue gauge and President Donald Trump issued a revised order restricting entry by people from six predominantly Muslim countries.
Passenger revenue for each seat flown a mile -- a closely watched measure of pricing power -- will be flat this quarter, Atlanta-based Delta said in a presentation Monday. The carrier said in January that the benchmark gauge, known as unit revenue, could rise as much as 2 percent after two years of declines.