Shares of Delta Air Lines Inc which is a carrier in the United States witnessed a fall of about 4 percent in the trading of the Thursday.
his was because of the concerns of the revenue growth in the year 2019 of the airline because of the slowing global economies.
Delta Air Lines Inc ranks at number in the United States and the fall would be despite the strong demand of travelling. Delta which is an Altanta based firm had forecasted only a 4 to 6 percent increase in its revenues.
This was less than what was forecasted by Refinitiv data which was 5.6 percent.
The 2019 profit forecast of Delta for the lower end was $6 to $7 per share. This estimate also fell short of the average of $6.70 which was the forecast of Refintiv.
In 2018, the airlines of the United States had increased their fares as well as the baggage fees so as to pull in revenue.
The investors however believe that the airlines will not be able to continue with this strategy of theirs because of the slowing of the economic growth.
Shortly before noon the shares of Delta were down by 4 percent declining by a value of $2.29 percent and reaching a worth of $53.97 percent.
This was an under-performance by the shares of Delta when the S&P index 500 stocks have witnessed a slight escalation.
Ed Bastain, who is the Chief Executive Officer of Delta stated that so as to boost the revenues the company will keep its focus on the higher- margin premium products and will continue with the segmentation of its cabins.
These premium products now account to about 30 percent of the revenue of the company and the increase since the last six years has been just double.
Source: Reuters, Investors
