Delta Warns of Weaker Pricing Power as U.S. Shutdown Dents Sales
- First-quarter earnings forecast trails analysts’ estimates
- Carrier sees slowdown in its ability to jack up airfares
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Delta Air Lines Inc. said its ability to raise ticket prices is weakening and warned that the U.S. government shutdown is eroding sales.
Less travel by federal employees and contractors is costing Delta about $25 million a month even as corporate and leisure travel remain strong, Chief Executive Officer Ed Bastian said Tuesday. Revenue from each seat flown a mile, a gauge of pricing power, will rise no more than 2 percent this quarter, Delta said. That’s down from 3.2 percent in the previous three-month period.