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Delta Air Lines
CEO Ed Bastian said the carrier will “meaningfully reduce” its capacity growth plans in the near term as fuel costs soar, solidifying a pullback from airlines that have been roiled by a historic run-up in jet fuel due to the Middle East war.
Shares were up more than 11% in premarket trading, extending gains U.S. carriers saw after oil prices dropped.
Delta on Wednesday forecast adjusted per-share earnings of $1 to $1.50 in the second quarter, compared with the $1.41 a share analysts were expecting, with revenue up in the “low-teens” percentage points compared with a year earlier, above the roughly 10% Wall Street forecast. Capacity will likely be flat on the year, Delta said.
