Delta's stock price dived 2.83% to $52.81 after Buckingham Research lowered its rating to neutral from buy. Analysts at the firm cited turbulence ahead for the airline as it grapples with higher costs.
The plunge in Delta shares continues a rout that kicked off Wednesday when the airline provided an update that, instead of soothing investors, wound up rattling them.
Offering a preview of its upcoming third-quarter results, Delta forecast a 2.5% increase in non-fuel related costs for things like labor, maintenance and weather disturbances.
That's up from the airline's previous cost-increase estimate for the quarter of 1% to2%, with the update pushing shares of Delta down 4% by the close of trading Wednesday.
Delta is also projecting a similar trend for the whole of 2019, with costs expected to rise 2% for the year due to higher wages and other expenses.
The airline, which is preparing to release third-quarter earnings Oct. 10, also anticipates a 6.5% rise in revenue over the same period the year before, down from its earlier forecast of 6.7%.
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