Delta shares tumble after outlook falls short of estimates despite strong summer travel demand

The Paris Olympics is expected to have a 1-percentage point negative impact on Delta's unit revenue for trans-Atlantic flights1. This impact is equal to about $100 million from June through August, as stated by Delta CEO Ed Bastian1.

Delta's shares fell due to a lower-than-expected earnings forecast for the third quarter. Despite record revenue in Q2 and strong summer travel demand, increased industry capacity and higher costs led to a drop in fares compared to last year, causing the company's profits to fall short of analysts' estimates.