New York
CNN
—
Delta Air Lines slashed its earnings forecast in a Securities and Exchange Commission filing Monday, saying consumers are worried about the economy in a sign that uncertainty and economic jitters could change the way Americans are now spending their money.
The airline expects 3% to 4% growth year over year, down from an earlier estimate of 7% to 9%. And although it initially expected up to $1 earnings per share, that number is now expected to be only $0.30 to $0.50, according to the filing.
“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 in Monday’s filing.
Its stock (DAL) tumbled roughly 13% in after-hours trading, part of a steady decline since February.
Delta’s warning comes as President Donald Trump’s tariff plans and recession fears have caused US stocks to plunge. In an interview with Fox News on Sunday, Trump said the US economy would see “a period of transition” and refused to rule out a recession. By Monday, Wall Street’s fear gauge hit its highest level so far this year.
Airline travel had a resurgence in demand after a decline during the Covid-19 pandemic, as US consumers were ready to “revenge spend” on experiences such as air travel. But the aviation industry has been hit with a string of aviation incidents in recent weeks, though flying is still considered one of the safest ways to travel.
Delta also noted that growth in its pricier premium and international segments would remain as expected.
CNN’s John Towfighi and Lucy Bayly contributed to this report.
