Delta Air Lines has announced a less optimistic profit outlook for the current quarter, citing a significant slowdown in travel demand due to economic uncertainties triggered by President Donald Trump's extensive tariffs. The airline has refrained from reaffirming its full-year financial projections, reflecting a volatile macroeconomic landscape.
-
Profit Outlook: Delta expects earnings between $1.70 and $2.30 per share for the quarter ending in June, below analysts' consensus of $2.30 per share.
-
Travel Demand: The airline has seen a decline in bookings from both leisure and business travelers, impacting domestic travel demand.
-
Economic Uncertainty: Consumer and business confidence in the U.S. has declined due to tariffs, raising concerns about inflation and economic growth.
-
Capacity Adjustments: Delta plans to reduce its planned capacity growth for the second half of the year to maintain profitability.
-
International Travel: Despite challenges, international and premium travel segments remain strong.
This shift in Delta's outlook highlights the broader impact of trade policies on the airline industry and consumer spending.
Source: Reuters, The Atlanta Journal-Constitution, CNBC