Delta trims its profit outlook

Delta Air Lines dragged down U.S. airlines after the carrier trimmed its profit outlook, citing the rising price of jet fuel.

Second-quarter earnings will be no more than $1.75 a share, Delta said in a statement Wednesday.

That is down from a previous forecast of as much as $2 a share.

Fuel prices have risen about 12 percent since the beginning of the quarter, and fares typically take six months to a year to catch up, the No. 2 U.S. airline said.

Delta cut its forecast six weeks after a similar move by American Airlines, the world's biggest carrier.

Other airlines are likely to follow suit, said Adam Hackel, an analyst at Imperial Capital. "You'll certainly see over the next week or two some more revisions as they get fuel fully priced in," he said.

Delta's share price fell 2.9 percent early Wednesday, but rebounded later. For the day, Delta was down slightly less than 1 percent at $54.17.

The carrier said it would make a decision within the next month on seating capacity for the fall.

Paring the supply typically enables airlines to raise fares, assuming demand remains strong. The Atlanta-based airline maintained its prediction for an increase in capacity of no more than 4 percent this quarter.

While airlines won't trim seats during the busy summer travel season, "there's still enough time for them to look at it after Labor Day, when you really hit a pretty dramatic off-peak period for this industry," Hackel said. The industry is still benefiting from strong travel demand, he said.

Brent crude, a benchmark for global oil prices, has climbed 16 percent this year to a little more than $75 a barrel.