New Pilot Contract Dims Delta Profit Forecast

On Friday, Delta Air Lines said that it would experience a $475 million fourth-quarter revenue reduction due to a new contract raising pay for pilots retroactively for the start of 2016. The carrier claims that it will pay profit-sharing and increased pilot wages to the tune of $380 million for the first three quarters of the year, and as a result, its profit margin for the quarter is expected to fall between 9.5 percent and 10.5 percent – approximately five percentage points lower than the carrier’s previous outlook.

To read more on this story, go to Reuters.

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