Delta Air Lines has revised its first-quarter revenue and profit forecasts downward, citing weaker domestic demand. The announcement, made on March 10, 2025, indicates that Delta expects revenue growth of no more than 5% compared to the previous year, a decrease from earlier estimates of 6% to 8% growth.
- Delta Air Lines lowers revenue and profit outlook
- First-quarter revenue growth forecast cut to 5%
- Adjusted earnings forecast reduced to 30-50 cents
- Consumer confidence impacts travel bookings
- Safety concerns following recent incidents noted
- Other airlines to update demand trends soon
In addition, Delta has cut its adjusted earnings forecast to between 30 cents and 50 cents per share, down from a prior estimate of 70 cents to $1 per share. Following this News, Delta’s shares fell over 13% in after-hours trading.
Delta Air Lines’ updated forecasts reflect growing concerns about the travel industry’s performance. The airline’s CEO, Ed Bastian, noted a decline in consumer and corporate confidence, which has led to reduced bookings for both leisure and business travel. This shift in demand follows a broader market sell-off, impacting airline stocks significantly.
Key details from Delta’s announcement include:
- Revenue growth expectation reduced to a maximum of 5%.
- Adjusted earnings forecast lowered to 30-50 cents per share.
- Shares fell over 13% in after-hours trading following the announcement.
Bastian also mentioned that safety concerns, particularly after recent aviation incidents, have further influenced customer behavior. Despite these challenges, Delta reported that demand for premium and international travel remains stable, aligning with their expectations.
As the airline industry prepares for a JPMorgan conference, other major airlines like American Airlines and United Airlines are also expected to share their insights on current demand Trends. The recent decline in airline stocks highlights the sector’s vulnerability to shifts in consumer spending patterns.
In summary, Delta Air Lines’ significant cuts to its revenue and earnings forecasts signal challenges in the travel sector, driven by declining consumer confidence and safety concerns. The airline’s stock has reacted sharply, reflecting broader market trends affecting the industry.
