Delta Air Lines has revised its first-quarter profit and sales forecasts, citing a decline in domestic travel demand. The carrier now expects revenue to rise no more than 5% from last year, down from an earlier forecast of 6-8% growth. Adjusted earnings per share have also been slashed from $0.70-$1.00 to 30-50 cents.
The company attributes the downward revision to a recent decline in consumer and corporate confidence, driven by increased macro uncertainty. CEO Ed Bastian told CNBC that he does not expect a recession but noted that both leisure and business customers have reduced bookings due to weaker consumer confidence. Delta also cited safety concerns, including the deadly midair collision between a regional jet and an Army helicopter, as contributing factors.
Despite this, Delta remains confident in its full-year outlook and expects demand for premium travel, international travel, and loyalty revenue growth to remain on track. Other carriers, such as American Airlines, Southwest Airlines, and United Airlines, will also update investors on demand trends at a JPMorgan airline industry conference later this week.
Source: https://www.cnbc.com/2025/03/10/delta-air-lines-cuts-forecast-softer-demand.html