Delta (DAL) missed third quarter earnings estimates, and shares slid 4.8% in afternoon trading as the entire sector slid.
Delta posted 91 cents of EPS excluding one-time items, 2 cents worse than expectations. The company said higher fuel prices cost the company an additional $1 billion, but a 10% jump in revenue helped offset the fuel price rise. Delta also said corporate demand has been strong.
“Our September quarter passenger unit revenue increase of 11% from prior year, a revenue premium to the industry, demonstrates that our plan is working. Corporate travel demand remains strong. �With continued capacity discipline, coupled with improvements we are making in our product and service, we are well positioned to deal with the impact of today’s high fuel prices and an uncertain economy,” said Delta President Ed Bastian.
Other ailrines also fell, with United Continental Holdings (UAL) down 4.2%.