Delta Air Lines’ (DAL) stock is down 10% after the carrier lowered its first-quarter 2025 revenue and profit forecasts, citing weak travel demand in the U.S.
In a written statement, Delta said that it expects revenue in the current quarter to rise no more than 5% from last year.
The new outlook has been lowered from a previous forecast issued in January that called for 6% to 8% revenue growth.
Delta also reduced its first-quarter earnings forecast to $0.30 U.S. to $0.50 U.S. per share from previous guidance that called for earnings per share (EPS) of $0.70 U.S. to $1 U.S.
The lowered outlook comes ahead of an airline conference where CEOs of the biggest U.S. carriers are expected to update investors on demand trends.
In its statement, Delta said: “The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in domestic demand.”
The news from Delta contributes to fears that the U.S. economy is slowing and might be headed for a recession.
The reduced outlook is a sharp reversal from Delta’s bullish forward guidance issued in January of this year.
The company delivered strong financial results for the final quarter of 2024 and offered an upbeat outlook for the current quarter and year ahead.
However, travel demand now appears to have soured for the carrier and broader airline industry.
Prior to today (March 11), Delta Air Lines stock had declined 15% this year to trade at $50.33 U.S. per share.
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