Yesterday Delta Air Lines Inc. (NYSE: DAL) reported that passenger revenue miles rose by just 2% in March. Unit revenue rose 5% in February and 5.5% in January, so the sharp drop in growth weighed on all airlines stocks yesterday.
Both US Airways and Delta are blaming a drop in the number of last-minute bookings for the lower revenue growth, and both blame the impact of the federal budget cuts (the sequester) for a drop in the number of trips taken by government employees. Delta lowered its quarterly unit revenue growth estimate from a range of 4.0% to 5.5% to a new range of 4.0% to 4.5% yesterday. US Airways did not make any revenue forecast.
Shares of US Airways are down 2.5% just before noon today, at $15.35 in a 52-week range of $7.45 to $17.43.
Shares of Delta down 2.4%, at $14.58 in a 52-week range of $8.42 to $17.25.
US Airways continues to work on completing its proposed merger with American Airlines, which could close in around six months.