September 5, 2017 / 1:34 PM / 3 months ago

Delta cuts passenger unit revenue forecast, shares drop

(Reuters) - Delta Air Lines Inc (DAL.N) on Tuesday cut its forecast for passenger unit revenue, a closely watched performance metric, for the current quarter due to slower than anticipated recovery in fares for last-minute flights.

The No. 2 U.S. airline by passenger traffic said it now expects third-quarter passenger unit revenue, which compares sales to flight capacity, to rise 2-3 percent.

    It had previously forecast an increase of 2.5-4.5 percent.

    Delta also cut its operating margin forecast to 16.5-17.5 percent from 18-20 percent for the quarter.

    The company’s shares were down 1.7 percent at $46.71 in premarket trading.

    Reporting by Ankit Ajmera in Bengaluru; Editing by Savio D'Souza

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