Delta Air Lines issued a profit forecast that fell short of Wall Street expectations, signaling a more cautious stance for 2026 from the major U.S. carrier following a turbulent period for the airline industry. Following the release of its quarterly results on Tuesday, shares of the Atlanta-based airline dropped 1.5% to $70 as of 11:07 a.m. New York time. United Airlines Holdings saw a slight increase, while American Airlines Group declined by 1.7%. As the first major U.S. airline to report earnings, investors are scrutinizing Delta's performance for signs of the industry's recovery. The company's relatively conservative outlook stands in stark contrast to the optimistic projections made by its CEO, Ed Bastian, in early 2025. Bastian stated in an interview, "We recognize there is still considerable uncertainty in the current environment, particularly in the geopolitical sphere. Until we have a clearer grasp of these uncertainties, we are not forecasting or promising record profits." He added that travel segments, such as visitors from Canada to the United States, "have not yet recovered on a large scale." The airline stated it expects full-year 2026 earnings per share to be in the range of $6.50 to $7.50. The midpoint of this forecast is below the average analyst estimate of $7.20, based on a Bloomberg survey.
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