ATLANTA — Delta Air Lines executives are presenting at the J.P. Morgan Industrials Conference on Tuesday, but ahead of their presentation, the company announced a lowered revenue forecast.
In previous guidance submitted to the U.S. Securities and Exchange Commission, the Atlanta-based airline had said it expected to see revenue increase between 7% and 9%.
On Monday, citing consumer and corporate confidence dropping, the company cut its revenue projections by more than half.
For the first quarter revenue in 2025, Delta now expects just a 3% to 4% revenue increase.
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Earnings per share expectations were similarly lowered, going from a $0.70 to $1 forecast to between $0.30 and $0.50.
“Delta expects to deliver total revenue growth for the March quarter of 3% to 4% year-over-year. The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand,” the company said.
The company said in its investor report that a decline in oil prices, softer close-in demand and the reduction of consumer and corporate confidence had impacted the business outlook.
However, the company release said the premium, international and loyalty revenue trends are still consistent with its expectations and “reflect the resilience of Delta’s diversified revenue base.”
Georgia State University economics professor Dr. Kyle Townsend told Channel 2’s Berndt Petersen it’s not just Delta, but the whole air travel industry currently taking a hit.
“I would think it’s important to say that this is ‘not’ unique to Delta,” he said.
With business and leisure travel down, and companies making cuts, Townsend said it’s the overall economy that’s to blame, not recent accidents involving Delta jets.
“I don’t think the crashes are the main reason,” Townsend said about the earnings forecast. “I think there’s a larger affect of general uncertainty across the business world.”
For frequent flyer Rachael Ossovicki, she’s not worried about the uncertainty, but does worry about safety.
“My mom said ‘it’s the safest means of transportation.' I said, yeah. As long as we land right-side up,” Ossovicki told Petersen.
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