Delta Air Lines has revised its first-quarter revenue and profit outlooks downward, citing softer domestic demand and declining consumer confidence. The airline now expects revenue to grow by no more than 5% year-over-year, a downgrade from its earlier forecast of 6% to 8%. Additionally, it cut its adjusted earnings projection to a range of $0.30 to $0.50 per share, significantly below its previous estimate of $0.70 to $1.00. Following the announcement, Delta’s stock tumbled over 5% in regular trading on Monday and dropped an additional 13% in after-hours trading.
The company attributed the slowdown to broader economic uncertainty, which has impacted both leisure and corporate travel bookings. CEO Ed Bastian told CNBC’s Closing Bell that while he does not anticipate a recession, he has observed a decline in consumer confidence, leading to more cautious spending on travel. Delta also pointed to recent aviation safety concerns as a factor affecting demand. The airline referenced the deadly midair collision in Washington, D.C., in January between a regional jet and an Army helicopter, as well as its own non-fatal crash landing in Toronto last month.
Despite these short-term challenges, Delta remains focused on long-term growth and stability. The company continues to monitor travel trends and adjust its strategy accordingly, while aiming to reassure customers about safety and reliability. Bastian emphasized that Delta remains confident in the resilience of the travel industry, even as it navigates current economic and operational headwinds.
