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Delta Lowers Earnings Forecast, Shares Plunge 13%

The airline cut its revenue and profit outlook for Q1, citing reduced consumer and corporate confidence in the U.S. economy.

Delta Airlines planes sit parked at Hartsfield-Jackson Atlanta International Airport in Atlanta on June 28, 2024.
Delta Airlines passenger jets are pictured outside the newly completed 1.3 million-square foot $4 billion Delta Airlines Terminal C at LaGuardia Airport in the Queens borough of New York City, New York, U.S., June 1, 2022. REUTERS/Mike Segar/File Photo
A Delta Airlines commercial aircraft flies over Washington as it approaches to land at Dulles International Airport, as seen from Washington, U.S., August 5, 2024. REUTERS/ Umit Bektas/File Photo
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Overview

  • Delta revised its Q1 revenue growth forecast to 3%-4%, down from its earlier projection of 7%-9%.
  • The company slashed its earnings per share guidance to 30-50 cents, significantly below the previously estimated 70 cents to $1.
  • Delta attributed the downgrade to weakening consumer and corporate confidence and economic uncertainty impacting domestic travel demand.
  • The announcement caused Delta's stock to drop by 13% in after-hours trading, following a 5.5% decline during the regular session.
  • The updated guidance precedes a scheduled presentation by Delta executives at the J.P. Morgan Industrials Conference.