UPDATE 1-Delta Air's revenue measure misses forecast in June
(Adds analysts' comment)
July 2 (Reuters) - Delta Air Lines Inc on Wednesday reported that an important revenue measure rose less than its forecast in June due to international weakness, sending U.S. airline stocks lower.
Delta shares fell 5.6 percent to $38.07 as carriers with global networks took the brunt of the stock market hit. American Airlines Group Inc slid 5.1 percent to $41.64, and United Continental Holdings Inc sank 6.6 percent to $39.44.
Delta said passenger revenue per available seat mile increased 4.5 percent in June, trailing its forecast calling for an increase of as much as 7 percent. While U.S. results were solid, Delta noted that business demand was lower to Latin America in light of the World Cup soccer tournament in Brazil and industrywide capacity increases that hurt ticket prices.
Delta's capacity - a measure of seats available to generate revenue - to Latin America rose 23.5 percent in June from a year earlier while capacity on European routes rose 1 percent. Its Pacific capacity fell 0.6 percent in June.
Delta's traffic rose 20 percent in Latin America, but fell 1.3 percent and 2.5 percent in Europe and Asia, respectively.
Raymond James airline analyst Savanthi Syth said increased flying on trans-Atlantic routes was more pronounced among European carriers. "We'll have to see if the carriers that are flying on those routes adjust capacity correctly," Syth said.
German carrier Lufthansa cited "overcapacity" in Europe last month when it cut profit targets.
Syth said Latin America weakness, due to businesses there curbing travel during the World Cup, would likely subside in the second half of July. Continuación...