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The
company noted that its premium, international and loyalty
revenue growth trends remained consistent with expectations.
Shares in the Atlanta-based carrier fell 13.2% in after-hours
trading after closing 5.5% lower during the regular session. The
stock is down 16.8% so far this year.
The airline released its updated guidance a day before its
executives were scheduled to give a presentation at the J.P.
Morgan Industrials Conference.
Delta expects first-quarter revenue will rise between 3% and 4%
compared to a year earlier. That's below the company's previous
outlook for revenue growth between 7% and 9%.
The airline also predicted its first-quarter earnings per share
will range between 30 cents and 50 cents. That's down from its
prior guidance, which called for earnings per share between 70
cents and $1.
In January, Delta released fourth-quarter results that topped
Wall Street's profit and revenue estimates, as the company
benefited from strong demand during the crucial holiday period.
But in the weeks since, the U.S. economy has begun showing signs
of weakening, mostly through surveys showing increased
pessimism. A widely followed collection of real-time indicators
compiled by the Federal Reserve Bank of Atlanta suggests the
U.S. economy may already be shrinking.
Uncertainty over the impact that the Trump administration’s
tariffs on imported goods from Canada, Mexico, China and
elsewhere will have on consumers and businesses is also weighing
on the stock market.
Delta's dimmer outlook comes less than a month since one of the
airline's jets burst into flames and flipped upside down as it
tried to land in Toronto. Miraculously, all 80 people on board
the flight from Minneapolis to Toronto’s Pearson International
Airport survived.
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