March 10 (UPI) — Delta Air Lines on Monday slashed its first-quarter revenue and earnings outlooks, citing weaker domestic demand in economic “uncertainty.”
Expected revenue in the quarter ending March 31 will rise no more than 5% from last year, down from a forecast in January of 6% to 8% growth, the airline said in a filing with the U.S. Securities and Exchange Commission.
The adjusted profit forecast was slashed 30 cents to 50 cents per share from a previous guidance of 70 cents to $1 a share.
“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand,” Delta said in a securities filing.
Delta’s filing came after the stock market closed on Monday, with indexes slumping on investors’ fears of economic problems, including a possible recession.
Delta shares declined 5.5% on the New York Stock Exchange.
In after-hours trading, Delta’s shares slumped 13%.
In 2024, adjusted operating revenue was a record $61.6 billion with $6 billion operating income.
“As we move into 2025, we expect strong demand for travel to continue, with consumers increasingly seeking the premium products and experiences that Delta provides,” the company said in a news release on Jan. 10.
Demand for premium travel, international travel and loyalty revenue growth still are in line with its expectations, Delta said.
On Monday, Delta CEO Ed Bastian told CNBC’s Closing Bell that “consumer confidence is coming down a little bit, as we all know. That’s why the market is in the challenge that it is. And as a result of that, we saw companies start to pull back in terms of corporate spending — started to stall.”
Bastian said he doesn’t believe the nation is headed toward a recession. “I don’t feel it. … I think there’s a lot of uncertainty, but I still think there’s cautious optimism that as the uncertainty starts to clear, then businesses are going to be ready and poised to start to grow.”
He noted oil prices are also down by $10 a barrel, “which is why we’re not changing our full-year forecast.”
He said concerns about safety “somewhat exacerbated the impact on us” after a Delta plane crash-landed and overturned in Toronto but no one died on Feb. 17. It wads operated by Endeavor Air, a subsidiary of Delta.
Delta Air Lines later announced plans to offer $30,000 to each of the passengers on the flight with “no strings attached.”
And 67 people died in January in a midair collision between an American Airlines regional jet and an Army helicopter in Washington.
On Tuesday at a JPMorgan airline industry conference in New York, CEOs are expected to update investors on current demand trends. The conference will include leaders from American Airlines, Southwest Airlines and United Airlines.
Delta, with its main hub in Atlanta, has the largest market share in the United States at 17.8%, ahead of American Airlines at 17.5% and United Airlines at 16.0%.
Delta served more than 200 million customers in 2024 with 5,000 daily flights to more than 290 destinations on more than 720 aircraft.
The company, which is the oldest airline in the United States founded in 1925, has 100,000 employees.
