Airline stocks fell Thursday after Delta Air Lines (DAL) - Get Report and American Airlines (AAL) - Get Report delivered underwhelming second-quarter revenue forecasts at the Bernstein Annual Strategic Decisions Conference.
Delta estimates adjusted revenue will total $6 billion to $6.2 billion for the second quarter, down 50% to 52% from the 2019 quarter, a year before the COVID pandemic.
American estimates second-quarter revenue will slump about 40% from the corresponding 2019 period.
All three have scored double-digit gains over the past six months, with American surging 71%, as investors expressed optimism about the distribution of vaccines and the prospects of recovery in the travel sector and broader economy.
Also Thursday, United said it agreed to buy 15 of Boom Supersonic's Overture airliners and took an option for 35 additional aircraft, once they satisfy the carrier's safety, operating and sustainability requirements.
The carrier declined to disclose financial terms of the accord.
United Air said the Overture is expected to be the first large commercial aircraft to be net-zero carbon and optimized to run on 100% sustainable aviation fuel.
Last month, Delta tapped a veteran General Electric GE executive, Dan Janki, as executive vice president and chief financial officer, effective July 12. Janki is senior vice president at GE and chief executive of GE Power Portfolio.
Also in May, American said that it would maintain its suspension of alcohol sales in its main cabin through Sept. 13. That move comes amid rowdy behavior from passengers, including physical and emotional abuse of staff.