Delta Air Lines Cuts Profit Forecast as Economic Concerns Weigh on Travel Demand

The airline cites declining consumer and corporate confidence, leading to reduced domestic bookings and a sharp revision of its Q1 outlook.

Delta Air Lines has significantly lowered its Q1 2025 forecast, citing a 3% to 4% revenue growth projection compared to the 7% to 9% initially expected.
The airline attributes the revision to reduced consumer and corporate confidence, driven by economic uncertainty and domestic demand softness.
Delta and United Airlines announced plans to reduce summer capacity, with United retiring 21 aircraft early and cutting flights in underperforming markets.
The broader airline industry has seen stock declines, with Delta shares down approximately 17% year-to-date and other major carriers reporting drops tied to economic fears and tariff concerns.
Southwest Airlines bucked the trend, with shares rising after announcing new cost-cutting measures, including charging for checked baggage for the first time.