Delta Air Lines Cuts 2024 Profit Outlook, Unveils Airbus Order

Due to economic uncertainty and potential supply chain issues, Delta Air Lines has reduced its profit forecast for 2024.

However, the airline also disclosed that it intended to acquire nearly twenty-eight new aircraft from Airbus.

Delta exercised prudence in reducing its profit margin for the current year, notwithstanding its disclosure of generating $2 billion during the fourth quarter of 2023. 

The airline acknowledged that a degree of economic uncertainty must be considered. More than six percent of the company's stock price dropped subsequent to its announcement.

Delta's chief executive officer, Ed Bastian, stated that the company remained committed to achieving earnings per share in excess of $7, but provided a cautious assessment of the market in which it had "considerable confidence.

The Atlanta-based airline concluded the previous year with a profit of $2 billion. The airline reported that 2023 was its highest-grossing year.

Delta will acquire 20 widebody Airbus A350-1000 aircraft, with an additional 20 available for purchase. The aircraft, which is anticipated to be utilized for global travel, will be delivered in 2026.

 The airline's demand for premium travel accommodations will be increased as a result. 

Delta possesses over a hundred widebody aircraft and has made a commitment to acquire an additional 32. These aircraft are anticipated to be utilized in the rapidly expanding Asia-Pacific market. 

Delta would emerge as the predominant airline based in the United States to implement the A350-1000. British Airways, Qatar Airways, and Cathay Pacific Airways are the current operators.

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