Shares of Delta Air Lines (NYSE: DAL) plunged about 7% in pre-market trading Tuesday after the airline lowered its sales and profit expectations for the first quarter. The company pointed to economic “uncertainty” that has dampened demand for travel across the United States.
In a regulatory filing released Monday evening, Delta said it now expects revenue to grow between 3% and 4% for the quarter, a noticeable decrease from its earlier forecast of 7% to 9%. The airline also lowered its earnings per share outlook to a range of 30 cents to 50 cents, down significantly from the prior estimate of 70 cents to $1.
The company explained the weaker outlook in its filing, stating,
“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand.”
During a Monday appearance on CNBC, CEO Ed Bastian reinforced this point, noting a clear dip in spending from both businesses and individual travelers.
“Consumers, in a discretionary business, do not like uncertainty,” Bastian said.
The revised forecasts come as Delta Air Lines (NYSE: DAL) prepares for a presentation at the J.P. Morgan Industrials Conference on Tuesday, March 11, 2025, where executives are expected to provide further insight into its outlook.
