Disappointing Outlook From Delta Drags Down Airline Stocks

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January 4th, 2019

Delta said travel demand remained healthy, but its revised revenue outlook fanned fresh fear of weaker airline pricing power seeping into 2019, especially if global economic growth slows.

Charles Krupa / Associated Press file

Airline stocks were pummeled Thursday after Delta Air Lines Inc. trimmed its revenue forecast for the fourth quarter, renewing investors’ fears that airlines will squander the savings they are reaping from the recent drop in fuel prices.

Delta shares plunged nearly 9 percent, their worst one-day showing since 2012, to close at $45.61.

The parent companies of American Airlines, United Airlines and Alaska Airlines all dropped about 5 percent or more.

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