Delta Air Lines said it expects fiscal 2024 earnings to be at or above the midpoint of the range of forecasts management had issued, but an early gain in the stock faded away.
The news comes after a summer marked by disappointing earnings and a serious disruption to service resulting from a tech outage.
The company said in a securities filing that it now expects full-year earnings to be at or above the midpoint of the range of $6 to $7 a share it had forecast. Delta also said that earnings for its September quarter are expected to be at the high end of the range of $1.70 to $2 per share management had predicted.
“Lower market fuel prices expected to result in a realized fuel price per gallon that is slightly below the initial guidance range of $2.60 to $2.80,” Delta said in the investor update.
Delta investors could use the good news. The stock fell 4% on July 11 after the company’s second-quarter earnings fell short of expectations and management issued a disappointing outlook. The stock fell again on July 22 as flights were grounded after a content update by cybersecurity company CrowdStrike crippled computers all over the world.
“With continued strength in travel demand and moderating industry supply growth, Delta’s unit revenue trends are improving through the quarter consistent with expectations,” the company added in its update on Thursday.
Shares of the airline were down 0.6% to $44 in mid morning, bringing its gain for the year so far to 9.3%. It traded as high as $46.55.