ATLANTA - Delta Air Lines shares fell five percent today after a top executive said the airline is freezing hiring in certain areas as part of a cost-cutting move aimed at dealing with high fuel prices that will weaken fourth-quarter results.
Shares of several other major carriers also fell.
President and Chief Financial Officer Ed Bastian said at the Calyon Securities U.S. Airline Conference in New York that high fuel costs will ``dampen'' Delta's operating margin in the quarter ending Decembre 31st.
He said Delta's current projection for operating margin is flat to minus two percent. Previously, the company projected an operating margin of 3 percent to 5 percent for the quarter. For all of 2007, Bastian said Delta is still projecting an operating margin of around 6 percent.
The company did not provide any updated profit, sales or earnings per share projections for the fourth quarter.
Delta shares fell 97 cents to $18.61 in trading today. Standard Poor's reiterated its hold rating on Delta's stock.
Delta has initiated a hiring freeze on any non-customer facing positions. It also wants to improve self-service kiosk options for customers and increase the number of people buying tickets online.
Thursday
January 23rd, 2025
7:55PM
