Delta Air Lines Revises First Quarter Forecast

In a recent filing, Delta Air Lines, Inc. announced a significant adjustment to its first-quarter guidance for fiscal 2025, reflecting the impact of current economic uncertainties on consumer and corporate confidence.

Initially, on January 10, the airline projected a year-over-year revenue growth of 7% to 9%, with earnings per share (EPS) anticipated to be between $0.70 and $1. However, the latest update suggests a more modest revenue increase of 3% to 4%, with EPS expected to range from $0.30 to $0.50.

"The revised outlook is attributed to a reduction in consumer and corporate confidence, driven by increased macroeconomic uncertainty, which has led to softer domestic demand," Delta explained. Despite these challenges, the company highlighted the resilience of its diversified revenue base, with premium, international, and loyalty revenue growth trends remaining consistent with expectations.

Following the announcement, Delta's shares experienced a significant drop, falling 13.09% in after-hours trading.