Close Menu
News JournosNews Journos
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
Editors Picks

Trump Threatens Jail for Tesla Vandals and Their Financial Backers

March 21, 2025

Trump Initiates Investigation into Biden Aides Over Alleged Health “Conspiracy” and Autopen Usage

June 5, 2025

White House Addresses Report on Possible Trump Cabinet Shake-Up Amid Other Key Headlines

April 22, 2025

Tesla Shares Fall Amid Musk-Trump Feud Before Q2 Deliveries

July 1, 2025

Trump Issues Executive Order Against Jenner & Block Law Firm and Attorney Andrew Weissmann

March 25, 2025
Facebook X (Twitter) Instagram
Latest Headlines:
  • Hurricane Melissa Strikes Jamaica with Severe Winds and Rain, Moves Toward Cuba
  • 5 Key Tips for Protecting Your Online Privacy on Social Media
  • Portland Statue Controversy Concludes with Reinstatement Decision
  • Lithuanian FM Urges EU to Strengthen Eastern Defense Amid Rising Tensions
  • Nvidia AI Chips Enter Full Production in Arizona
  • Severe Flooding Strands Residents and Disrupts Life in Seven Provinces
  • U.S. Strikes Four Alleged Drug Boats in Pacific, Killing 14 and Leaving One Survivor
  • Amazon to Cut 14,000 Jobs Amid AI Integration Efforts
  • Bob Mackie Reflects on Iconic Career Designing for Legends Like Tina Turner and Cher
  • Louisiana Residents Concerned About Rising Energy Costs and Meta AI Data Center Construction
  • Netanyahu Commands Intensified Gaza Strikes After Ceasefire Breach
  • Trump Dismisses Oversight Board for D.C. Construction Amid Plans for White House Changes
  • European Stocks Decline Despite FTSE 100 Reaching Record High
  • Stocks to Watch: After-Hours Movers Include Visa, Seagate, Caesars, and Mondelez
  • Activist Investor Targets Underperforming U.S. Banks
  • Transgender Rabbi with Iranian Allegations Supports NYC Mayoral Candidate
  • Florida Breaks Execution Record with 15th Inmate this Year
  • Hurricane Melissa poses severe flood and landslide risk to Jamaica, Haiti, and Cuba
  • Tesla Reinstitutes Mad Max Mode in Full Self-Driving Update
  • Putin Appoints Family Members to Key Positions Amid Kremlin Instability Concerns
Facebook X (Twitter) Instagram
News JournosNews Journos
Subscribe
Wednesday, October 29
  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Turkey Reports
  • Money Watch
  • Health
News JournosNews Journos
You are here: News Journos » Business » Delta Air Lines Lowers Earnings Forecast, Shares Decline
Delta Air Lines Lowers Earnings Forecast, Shares Decline

Delta Air Lines Lowers Earnings Forecast, Shares Decline

News EditorBy News EditorMarch 10, 2025 Business 5 Mins Read

Delta Air Lines has revised its revenue and profit forecasts downwards for the first quarter of 2024, attributing this decision to weaker domestic demand amidst growing consumer uncertainty. The airline’s revenue increase is now expected to be capped at 5%, a drop from earlier projections of up to 8%. In response to these forecasts, Delta shares have fallen significantly in after-hours trading, highlighting broader concerns within the travel industry regarding the current economic climate.

Article Subheadings
1) Delta Air Lines Cuts Revenue and Profit Forecasts
2) Factors Behind the Revised Outlook
3) Impact on Delta and the Airline Industry
4) Responses from Airline Executives
5) Future Forecasts and Market Concerns

Delta Air Lines Cuts Revenue and Profit Forecasts

On June 19, 2024, Delta Air Lines made headlines by announcing a significant downturn in its financial projections for the first quarter ending March 31. The airline indicated that it anticipates revenue growth to increase by no more than 5% compared to the previous year, down from an earlier forecast that estimated a growth range of 6% to 8%. In tandem with this adjustment, Delta has reduced its adjusted earnings forecast per share to between 30 cents and 50 cents, compared to its prior guidance of 70 cents to $1. This substantial revision underscores the airline’s recognition of changing market conditions.

Factors Behind the Revised Outlook

Several factors have contributed to Delta’s revised outlook. The airline cited a decline in both consumer and corporate confidence as a primary driver of the weakened demand for air travel. Increasing macroeconomic uncertainties have influenced public sentiment, leading to a notable reduction in bookings from both leisure and business travelers. In recent months, safety concerns following two aviation incidents—a deadly midair collision involving a regional jet and a military helicopter in January, along with an incident at Toronto’s airport—have also exacerbated the decline in consumer confidence, further impacting Delta’s sales projections.

Impact on Delta and the Airline Industry

The downward adjustment in Delta’s forecasts has had immediate repercussions, notably reflected in its stock performance. Following the announcement, Delta’s shares fell over 13% in after-hours trading, following a more than 5% decline during regular trading hours earlier that day. This response is indicative of a broader market trend, as other airlines have also seen their share prices fluctuate due to similar concerns surrounding consumer spending and economic health. Analysts have noted that the airline sector, which had shown resilience post-COVID-19 pandemic, is beginning to reflect the broader economic malaise affecting various industries.

Responses from Airline Executives

Delta’s CEO, Ed Bastian, addressed the revised outlook during an interview on the CNBC program “Closing Bell.” While he expressed a belief that a recession is not imminent, he acknowledged a considerable pullback in bookings from both leisure and business travelers. Bastian emphasized the cautious tone among consumers, specifying that safety concerns around recent incidents have notably influenced consumer behaviors. Other airline executives, including those from American Airlines, Southwest Airlines, and United Airlines, are also expected to share insights at an upcoming airline industry conference, where market trends and consumer behavior will be key topics of discussion.

Future Forecasts and Market Concerns

Moving forward, the airline industry remains under scrutiny as it grapples with the challenges posed by shifting consumer attitudes and economic uncertainty. Delta continues to report a stable demand for premium and international travel, as well as growth in loyalty programs, suggesting that not all areas of the business are equally affected. However, the current economic landscape indicates that airlines may need to adjust their strategies to navigate weaker domestic demand. Industry analysts will closely monitor upcoming reports and forecasts to gauge how airlines will adapt to these challenges and what this means for concentrated trends in consumer travel spending.

No. Key Points
1 Delta Air Lines reduced its revenue growth forecast for Q1 2024 to a maximum of 5% from a previous estimate of up to 8%.
2 The adjusted earnings forecast per share has been cut to between 30 cents and 50 cents.
3 Weakened consumer confidence and macroeconomic uncertainty are major reasons for the revised forecasts.
4 Safety concerns following two aviation incidents have exacerbated the decline in consumer confidence.
5 Delta’s stock fell over 13% following the announcement, reflecting broader concerns in the airline sector amid signs of reduced consumer spending.

Summary

The recent forecast revisions by Delta Air Lines echo a troubling sentiment in the airline industry as consumer confidence wanes and demand contracts. The combination of economic uncertainty and safety concerns presents a significant challenge for the airline sector, traditionally regarded as a bellwether for consumer spending. As Delta and its competitors navigate this turbulent landscape, the upcoming industry conference will likely provide further insights into how airlines plan to adapt to these dynamic market conditions.

Frequently Asked Questions

Question: What are the main reasons for Delta Air Lines revising its forecasts?

Delta Air Lines revised its forecasts primarily due to weakened domestic demand, decreased consumer and corporate confidence, and safety concerns stemming from recent aviation incidents.

Question: How has Delta’s stock been affected by its forecast revision?

Delta’s stock fell over 13% in after-hours trading and over 5% during regular trading following the announcement of its revised revenue and earnings outlook.

Question: What do airline executives predict for future market conditions?

Airline executives, including Delta’s CEO Ed Bastian, predict that while a recession may not be imminent, consumer concerns are affecting both leisure and business travel bookings.

Air Business Ethics Business Growth Business News Business Technology Consumer Trends Corporate Finance Corporate Strategy Decline Delta earnings Economic Outlook Entrepreneurship forecast Global Business Innovation Investment Opportunities Leadership Lines Lowers Management Market Trends Mergers & Acquisitions Retail Business shares Small Business Startups Supply Chain
Share. Facebook Twitter Pinterest LinkedIn Email Reddit WhatsApp Copy Link Bluesky
News Editor
  • Website

As the News Editor at News Journos, I am dedicated to curating and delivering the latest and most impactful stories across business, finance, politics, technology, and global affairs. With a commitment to journalistic integrity, we provide breaking news, in-depth analysis, and expert insights to keep our readers informed in an ever-changing world. News Journos is your go-to independent news source, ensuring fast, accurate, and reliable reporting on the topics that matter most.

Keep Reading

Business

Activist Investor Targets Underperforming U.S. Banks

7 Mins Read
Business

Lululemon Collaborates with NFL to Launch Apparel Line

6 Mins Read
Business

American Airlines Lags in Luxury Travel Market Behind Delta and United

6 Mins Read
Business

One in Three Manhattan Condo Owners Experience Financial Loss on Sales in Past Year

6 Mins Read
Business

Deckers Stock Declines Amid Concerns Over Hoka and Ugg Growth Outlook

5 Mins Read
Business

Ford Reports Q3 2025 Earnings Amid Market Challenges

7 Mins Read
Journalism Under Siege
Editors Picks

Rhode Island Man Charged for Threatening Trump on Social Media

July 9, 2025

Qatar Donates Jumbo Jet to Trump for Air Force One Use

May 11, 2025

Fortnite Returns to U.S. App Store After 5-Year Absence Following Apple Approval

May 20, 2025

World Leaders Respond to U.S. Airstrikes on Iranian Nuclear Sites

June 21, 2025

Trump Supporter Faces Prison Time in January 6 Case

March 2, 2025

Subscribe to News

Get the latest sports news from NewsSite about world, sports and politics.

Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

News

  • World
  • U.S. News
  • Business
  • Politics
  • Europe News
  • Finance
  • Money Watch

Journos

  • Top Stories
  • Turkey Reports
  • Health
  • Tech
  • Sports
  • Entertainment

COMPANY

  • About Us
  • Get In Touch
  • Our Authors
  • Privacy Policy
  • Terms and Conditions
  • Accessibility

Subscribe to Updates

Get the latest creative news from FooBar about art, design and business.

© 2025 The News Journos. Designed by The News Journos.

Type above and press Enter to search. Press Esc to cancel.

Ad Blocker Enabled!
Ad Blocker Enabled!
Our website is made possible by displaying online advertisements to our visitors. Please support us by disabling your Ad Blocker.
Go to mobile version