Delta Cuts Annual Profit Forecast by Nearly a Quarter

Delta Air Lines lowered its full-year profit outlook on Friday, trimming the midpoint of its forecast by nearly a quarter. Shares fell about 2% in midday trading.

The cut follows a period of elevated fuel costs that has weighed on the airline sector for weeks. Airlines have faced pressure as oil prices swung with developments in the U.S.-Iran standoff.

The guidance reset is a cautionary signal for airline stocks such as Delta and American Airlines, whose results depend heavily on fuel prices. Investors will look to upcoming commentary from carriers for signs of stabilizing costs.