NEW YORK (TheStreet) -- Shares of Delta Air Lines (DAL) were retreating, down 1.13% to $40.29 on heavy volume in midday trading Tuesday, after peer American Airlines Group (AAL) follows in its footsteps to lower its guidance for the second quarter.
The carrier cut its guidance for second-quarter unit revenue and pretax margins earlier today.
American, the largest U.S. airline by traffic, lowered its outlook for second-quarter passenger revenue per available seat mile. It expects PRASM to decline between 6% to 8%, compared to its previous forecast of a 4% to 6% drop.
Last week, Delta said second-quarter revenue based on the same measurement as American's forecast will drop by 4% to 5%, compared to its earlier projection for a decrease of between 2% to 4%.
About 15.81 million shares have changed hands as of 11:54 a.m. ET today, compared to its average trading volume of about 13.09 million shares a day.
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."