Delta Air Lines on Monday reduced its financial forecasts for the first three months of the year, saying that growing economic concerns between businesses and consumers had reduced demand for domestic trips.
Airline warning was the last sign that the US economy or at least perceptions of it are partially weakened by changes in federal policies announced by President Trump.
Delta said it now expects quarterly revenue will increase by at least 3 % a year ago, from a minimum 7 % profit that had only two months earlier. Delta’s share price, which decreased more than 5 % in regular negotiation on Monday, collapsed an additional 12 % into extensive transactions after publishing the information.
“The prospects have been influenced by the recent decline in consumer and corporate confidence caused by increased uncertainty of macro, leading the softness to domestic demand,” the airline said in a securitized securitized values. The airline published the information along with a presentation that plans to fulfill Tuesday at the JP Morgan Industrials conference.
In addition to impaired trust, Delta said fewer passengers were holding flights in a short period of time. But he added that her expectations to increase high quality travel revenue, international flight and dedication programs remained unchanged.
The bad news was not a complete surprise. A financial analyst, Savanthi Syth of Raymond James, said last week that the airline had probably lost some momentum in February from a slowdown in government trips, bad weather and anxiety of customers after a Delta -opened airplane.
Still, Ms Syth said that the demand for flights for the Spring Break seems to remain strong and that other airlines were unable to earn Delta’s expenses.
While some airlines have recently faced a variety of challenges, Delta and some have benefited from the intense demand for airplane seats and international flight.
Delta said in January that it had raised more than $ 15.5 billion in revenue over the last three months of last year, a record. At that time, its chief executive, Ed Bastian, said Delta was on the right track to “deliver the best financial year to Delta’s 100 -year history”. Last month, he said the employees would take an average of five weeks of pay to exchange profit.
But financial fears have begun to grow in recent weeks amid fears of a trade war. Wall Street had the worst day of the year on Monday, after Mr Trump refused to rule out the possibility that his policies would cause recession.
Other major carriers, including American Airlines, United Airlines and Southwest Airlines, are also scheduled to present updates at the JP Morgan conference on Tuesday.
