Delta Cuts Transatlantic Capacity on Brexit Concerns, Earnings Up 4.1%
Delta Air Lines announced financial results for the June quarter.
The Atlanta-based carrier said earnings rose by a better-than-expected 4.1%, but revenue fell by 2% or $260 million, of which $65 million was attributed to foreign currency pressure.
The airline said it would reduce capacity on its U.S.-UK routes this winter due to additional foreign currency headwinds from the drop in the British pound and economy uncertainty caused by Brexit.
The revenue environment, the airline said, “remains challenging, with persistent headwinds from close-in domestic yields and geopolitical uncertainty,” but Delta nonetheless remains focused on achieving its goal of positive unit revenue by year-end.
Delta expects passenger unit revenue to fall 4% to 6% in Q3 following a 4.9% drop in Q2.
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