DAL Delta Air Lines Inc

Delta Air Lines Inc. said its unit revenue fell 7% in July, furthering the trend of declines at the airline and across the industry.

Shares of Delta fell 6.2% to $37.05 in morning trading in New York.

The company blamed the decline in unit revenue—the amount it takes in per seat flown a mile—on continued domestic yield weakness, ongoing supply-demand imbalance in the trans-Atlantic and headwinds from the company's yen hedge positions. Last month, Delta said passenger unit revenue dropped 4.9% in the June quarter; the airline had anticipated a 2.5%-to-4.5% decline. The metric, a closely watched sign of demand and how well an airline is generating sales, has been declining across the industry because of relatively rapid expansions.

For Delta's current quarter, which ends in September, the company expects passenger unit revenue to fall 4% to 6%.

The No. 2 air carrier by traffic said its overall traffic rose 1.2% in July. Capacity increased 2.1%, while load factor, or the percentage or seats filled, declined to 87.1% from 87.9% a year earlier.

Write to Joshua Jamerson at joshua.jamerson@wsj.com

(END) Dow Jones Newswires

August 02, 2016 12:15 ET (16:15 GMT)

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