Delta Air Lines has warned that a surge in fuel prices will impact its profits this quarter, despite strong travel demand. In a filing, the airline confirmed expected earnings of $1.65 to $1.75 a share in the three months ending June 30, down from its forecast in April of $1.80 to $2 a share.
Delta said fuel prices are up about 50 percent over the past 12 months. Delta forecasts 2Q18 jet fuel in the range of $2.20 to $2.25 / gallon, compared to prior guidance of $2.07 to $2.12 / gallon.
During the month of May, Delta carried 16.8 million passengers across its global network, a record for the month of May.
May traffic measured in RPMs rose 2.9% to 19.7 million, while capacity, measured in ASMs, rose 3.5% to 22.8 million. Load factor for the month dipped by 0.4 percentage points to 86.3%.