Delta Air Lines Cuts Profit Forecast, Triggering Airline Stock Decline

The airline cites economic uncertainty and reduced consumer confidence as key factors behind its revised outlook and sector-wide market impact.

Delta Air Lines reduced its first-quarter earnings forecast to $0.30–$0.50 per share, down from $0.70–$1.00, and cut its revenue growth projection to 3–4%, previously estimated at 7–9%.
The airline attributed the revised guidance to declining consumer and corporate confidence, driven by broader economic uncertainty and weakening domestic demand.
Delta's announcement led to a 13% drop in its stock price in after-hours trading, with other major airlines, including United and American Airlines, also seeing significant declines.
CEO Ed Bastian noted that while premium and international travel demand remains steady, domestic travel softness and recent aviation incidents have further impacted consumer sentiment.
The update comes ahead of the J.P. Morgan Industrials Conference, where airline executives are expected to discuss current demand trends and economic challenges.