Delta Blames Sequester for Low Demand
Delta Air Lines blamed the sequester for lower close-in bookings in March, according to an SEC earnings report filed today. According to the report, most of Delta's unit revenue increases came from its trans-Atlantic and Latin offerings, while a weakening yen shrunk Pacific purchases. Although unit revenues managed a 2% year-over-year increase in March, the airline felt the squeeze on several fronts:
Lower close-in bookings
Delta's attempt to boost yields
Implementation of new revenue management technology
As a result, Delta has lowered its Q1 2013 unit revenue guidance from a 4.5%-5.5% year-over-year increase to a 4%-4.5% bump. Although it expects a profitable quarter with stable operating margins, this news comes as a blow to Mr. Market's expectations for the company. As of this writing, shares are down 7.26% for the day.
The article Delta Blames Sequester for Low Demand originally appeared on Fool.com.Fool contributor Justin Loiseau has no position in any stocks mentioned, and neither does The Motley Fool. You can follow Justin on Twitter @TMFJLo and on Motley Fool CAPS @TMFJLo.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.