Delta Air Lines slashes earnings outlook citing weaker U.S. demand, sending shares down

Delta Air Lines cut its first-quarter revenue and profit forecasts, citing weaker consumer and corporate travel demand.

Delta expects revenue in the quarter ending March 31 to rise no more than 5% from last year, down from a forecast in January of 6% to 8% growth. It slashed its adjusted earnings forecast to 30 cents to 50 cents per share from a previous guidance of 70 cents to $1 a share.

“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand,” Delta said in a securities filing.

The forecast, delivered after the market closed on Monday, comes a day before a JPMorgan airline industry conference where CEOs are expected to update investors on current demand trends.

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