Airlines are revising their first-quarter profit and sales forecasts downwards due to a weaker economic environment impacting travel demand. American Airlines now anticipates a loss of 60 to 80 cents per share, a significant increase from their earlier estimate of 20 to 40 cents per share. They also expect flat revenue compared to last year, a sharp contrast to their initial forecast of a 5% increase. This adjustment follows a deadly collision involving one of their regional jets. Delta Air Lines also reduced its first-quarter estimates, citing reduced consumer and corporate confidence due to economic uncertainty. Southwest Airlines lowered its unit revenue guidance to a maximum of 4% growth, down from 7%. Additionally, there has been a notable decline in government travel. Airline stocks reacted with Delta dropping over 8% and American nearly 4% in premarket trading.
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