Delta Lowers Q1 Revenue Outlook Amid Economic Uncertainty

Delta Air Lines has significantly reduced its first-quarter revenue and earnings forecasts, now projecting revenue growth of only 3% to 4%, down from 7% to 9%, and earnings per share between 30 to 50 cents, reduced from 70 cents to $1. This downward revision was attributed to a decline in consumer and corporate confidence amid growing economic uncertainty, which has softened domestic travel demand. Following the announcement, Delta's stock dropped by 13% in after-hours trading, adding to its year-to-date losses. CEO Ed Bastian emphasized that while consumer spending is stalling, premium and international travel demand remain stable. He expressed optimism that the current economic challenges are transitory and not indicative of an impending recession. However, the airline industry is closely monitoring economic signals, especially as political policies evolve that could impact travel spending.