Delta Air Lines has lowered its financial forecast for the first quarter due to growing economic concerns among businesses and consumers. The airline attributed the slowdown in demand to increased macro uncertainty, which is driving a decrease in domestic travel.
In contrast, high-end travel, international flying, and loyalty programs are expected to see revenue growth. Despite this, Delta’s share price tumbled 17% after the update was released. This comes as some airlines face challenges amid fears of a trade war and economic downturn.
The airline had previously projected a minimum gain of 7% in quarterly revenue but now expects it to rise by at least 3%. The change reflects growing anxiety among consumers and businesses, with many expecting a recession.
Other carriers scheduled to present updates at the J.P. Morgan conference on Tuesday include American Airlines, United Airlines, and Southwest Airlines.
Source: https://www.nytimes.com/2025/03/10/business/delta-airlines-economy-first-quarter.html