11:33 AM EDT, 07/11/2024 (MT Newswires) -- Delta Air Lines ( DAL ) issued a downbeat earnings guidance for the ongoing quarter on Thursday as the airline's earnings during the three months to June fell short of market expectations.

The carrier expects per-share adjusted earnings to be in a range of $1.70 to $2 for the three months ended Sept. 30. The consensus on Capital IQ is for $2.04. Revenue is expected to grow between 2% and 4%. The stock fell 6% in Thursday's trading session.

"As our international network and core hubs approach full restoration and we return to a normal cadence of retiring aircraft, Delta's capacity growth is decelerating into the second half," President Glen Hauenstein said in a statement. The carrier anticipates capacity rising 5% to 6% in the third quarter and revenue increasing 2% to 4%, according to Hauenstein.

Delta forecasts double-digit operating margin and a pre-tax profit of about $1.5 billion in the September quarter, according to Chief Executive Ed Bastian.

Adjusted EPS fell 12% on a yearly basis to $2.36 for the three months through June, below the Street's view of $2.38. Operating revenue increased to $16.66 billion from $15.58 billion last year, topping the Capital IQ-polled consensus of $15.7 billion. Total passenger revenue rose 5% to $13.84 billion, while cargo jumped 16%.

Total revenue per available seat mile fell 2.6% on an adjusted basis. International passenger revenue increased 4% year over year, with the Pacific and Latin America contributing the most to capacity growth.

Delta reiterated its full-year 2024 adjusted earnings guidance range of $6 to $7 per share, while analysts are estimating normalized EPS of $6.56.

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