NEW YORK (TheStreet) -- Shares of Delta Air Lines (DAL) were slumping, down 2.23% to $43.36 in midday trading Tuesday, after the airline lowered its forecast for unit revenue this quarter, according to Reuters.
Delta said it expects passenger revenue per available seat mile to fall 4% to 5% from a year ago. The company had previously forecast a drop of 2% to 4%.
Despite the airline's lower unit revenue, Delta did not adjust its margin guidance. The new guidance now puts Delta in line with industry peers.
In May, total available seat miles rose 4% compared the year prior to 21.3 billion, while revenue passenger miles increased by 2.7% to 18.2 billion.
Consolidated passenger revenue per available seat mile fell 5.5% from a year ago, due to the stronger dollar, lower surcharges in international markets, as well as lower domestic yields.
Atlanta, Ga.-based Delta Air Lines provides scheduled air transportation for passengers and cargo through its route network, centered around the hub system it operates at airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita.
Separately, TheStreet Ratings team rates DELTA AIR LINES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate DELTA AIR LINES INC (DAL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."