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Delta Warns Government Shutdown Will Affect Travel Demand and Airfares

January 15, 2019

Via: Fortune
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Delta Air Lines warned that its ability to raise fares is likely to slow this quarter as the U.S. government shutdown weakens travel demand, adding pressure to the carrier as a rising industry seat supply weighs on ticket prices.

Revenue from each seat flown a mile will rise no more than 2% this quarter from a year earlier, Delta (DAL, -2.70%) said as it reported earnings Tuesday. That pricing-power gauge, also known as unit revenue, climbed 3.2% in the final three months of last year.

Early first-quarter bookings are down across the industry, as tracked by Buckingham Research Group, signaling pressure from the shutdown.

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