Delta Air Lines has reported a significant slowdown in travel demand, which dropped from a 10% growth rate at the start of the year. The airline now expects its second-quarter revenue to either decline by up to 2% or grow by the same amount, compared to Wall Street’s expectation of a 1.9% increase. Delta’s adjusted earnings per share for the second quarter are projected to be between $1.70 and $2.30, falling short of the anticipated $2.23 per share. The company has decided not to update its 2025 financial guidance, despite confirming these targets just a month ago at an investor conference. Delta still anticipates profitability for the current year. In the first quarter, the airline’s net income rose to $240 million from $37 million the previous year, with total revenue increasing by 2% to $14.04 billion. Adjusted earnings per share reached 46 cents, a 2% increase from last year and above expectations, while adjusted revenue hit $12.98 billion, up 3% and in line with Wall Street’s forecasts. Delta has also decided to keep its flying capacity flat for the second half of the year, abandoning plans for a 3% to 4% expansion.
Real Vision
@RealVision
·
22h Travel demand into the US is plummeting by 60-70%! w/
@AndreasSteno
&
@RosenvoldGeo
for #MacroMonday.
Political tensions and price drops are shaking up international travel and impacting inflation trends.
Get FREE ACCESS to Real Vision https://rvtv.io/4cG9k5m
Jeffrey P. Snider
@JeffSnider_EDU
·
Mar 12 This is bad.
Delta’s CEO just admitted what no one wants to say out loud—the economy is breaking down in real time.
Airlines are slashing forecasts. Flights are emptying out. Consumers are tapped out.
When people start cutting back on travel, it’s a sign that discretionary
Marty Chargin
@MartyChargin
·
2h $DAL… Yo Greg … The Delta CEO did say the “international demand is down” and not from US customers traveling abroad “getting away from this mess”….But they are not seeing as many foreigners traveling to the USA. GEEZ… I wonder why?
Mario Nawfal
@MarioNawfal
·
8h AIRLINES BRACE FOR BRUTAL CUTS AS TRAVEL DEMAND SLIDES
U.S. airlines are set to slash 2025 forecasts this week as demand tanks.
Delta, American, and Southwest already trimmed outlooks. Stocks are plunging—Delta down 38%, United 40%, American 45%.
Analysts blame tariffs,
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