Delta Air Lines has significantly lowered its first-quarter profit expectations, citing economic volatility and concerns about flight safety as key factors impacting domestic travel demand. The airline now projects earnings per share to be between 30¢ and 50¢, a substantial decrease from the initial forecast of up to $1.00. This revision reflects a $500 million reduction in revenue growth guidance and a corresponding decrease in operating margin for the first three months of the year.
According to Delta, the downward revision is attributed to a “recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand.” While the premium and international travel segments are performing as expected, the airline’s overall performance is being weighed down by decreased domestic activity. CEO Ed Bastian acknowledged that recent aviation incidents, including a fatal collision involving an American Airlines Group Inc. plane and a Delta regional jet crash landing, have contributed to consumer apprehension regarding air travel.
