Delta Air Lines planes are seen stationed at Seattle-Tacoma International Airport on June 19, 2024 in Seattle, Washington.
Kent Nishimura | Getty images
Delta airlines Reduced his income and prospects for profits in the first quarter, citing lower domestic demand, supporting growing concerns about dull sales in certain corners of the travel industry.
Delta expects income during the quarter ending on March 31 to not exceed 5% compared to last year, down from forecasts in January from 6% to 8%. He reduced his forecasts of profits adjusted to 30 cents to 50 cents per share, against a previous orientation of 70 cents at $ 1 per share. Delta shares were down more than 13% in exchanges after opening hours after falling by more than 5% during the regular session on Monday.
“The prospects have been affected by the recent reduction in consumer and businesses caused by increased macro uncertainty, which stimulates the gentle domestic demand,” Delta said in a securities file.
Delta CEO Ed Bastian told CNBC’s “closing bell” on Monday that he does not expect a recession, but said that consumer confidence had weakened and that leisure and business customers have resumed reservations.
He said that security concerns “have somewhat exacerbated the impact on us” after the deadly open -air collision between an army jet and an army helicopter in January in Washington, DC, as well as the Delta accident on landing in Toronto last month which was not fatal.
Bastian’s comments come after a large market sale.
Delta’s forecasts, delivered after the closing of the market on Monday, one day occurs before a conference of the JPMorgan Aviation Industry during which CEOs should update investors on current demand trends. Delta said in a file that the demand for premium travel, international growth in travel and loyalty income is always in line with its expectations.
American airlines,, Southwest Airlines And United Airlines Among the other carriers who will also update Wall Street trends on demand.
Air stock prices have dropped sharply in recent days, as growing weaker consumption expenditure signs have struck the sector, which had been resilient compared to other industries following the COVVI-19 pandemic.