Delta Air Lines slashes earnings outlook citing weaker U.S. demand, sending shares down
- Delta Air Lines Inc. Cut its profit expectations for the first quarter, reducing earnings to 30 to 50 cents a share from prior estimates of 70 cents to 1 dollar due to weaker domestic travel demand and economic uncertainty.
- The airline's revenue guidance has been lowered by US$500 million, with the company citing concerns over flight safety and reduced consumer confidence affecting discretionary spending.
- Delta's shares fell 14%, impacting shares of United Airlines, American Airlines, and Southwest Airlines, contributing to an overall 22% drop in the S&P 500 passenger airlines index.
- CEO Ed Bastian stated that weakness in booking from various industries has led to an increase in consumer uncertainty, which could affect discretionary spending.
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Major US airlines cutting back services amid consumer retreat
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How things got so bad for airlines seemingly overnight
Airline profits are feeling the sting after a series of bad natural disasters, air crashes, and economic uncertainty shake customer confidence.Joe Raedle/Getty ImagesAirlines CEOs are adjusting their forecasts amid economic uncertainty and softened consumer demand.Natural disasters and air crashes in January and February haven't helped.Shares of American, Delta, Southwest, and United are all trading down this year. At the start of the year, airl…
Delta slashes forecast as U.S. economic fears hit demand
Delta Air Lines on Monday (March 10) slashed its first-quarter profit estimates by half, sending its shares down 14%, and its CEO said the environment had weakened due to U.S. economic uncertainty. Julian Satterthwaite reports.
Delta Air Lines stock falls, other airlines follow, as talk of a travel slowdown compounds economic fears
U.S. airline stocks are tumbling today after Delta Air Lines (NYSE: DAL) issued revised guidance for its first quarter. The carrier said it now expects total revenue, operating margins, and earnings per share to be below what it initially forecasted for Q1 2025. Here’s what you need to know. Delta Air Lines revises its Q1 2025 forecast Yesterday, Delta Air Lines filed a Form 8-K with the U.S. Securities and Exchange Commission (SEC), notifying t…
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