Delta Air Lines CEO Ed Bastian announced a meaningful reduction in capacity growth for the current quarter. The airline faces a $2 billion increase in fuel expenses linked to conflict in the Middle East. Delta will eliminate all previously planned growth. This move results in a 3.5% reduction in total supply.
This decision follows Delta’s Q1 earnings report and a downward revision of its Q2 earnings guidance. Bastian noted the growth outlook maintains a downward bias until fuel prices stabilize.
Separately, Argus Research raised its price target on Delta to $85 from $80. The firm maintained a buy rating based on strong operational performance.