By WSJ Staff
Airline stocks tumbled after Delta Air Lines slashed its near-term financial forecasts, in a sign of how economic anxiety is starting to hit travel demand.
In recent premarket action, Delta $(DAL)$ stock stood about 10% lower. Shares in United Airlines $(UAL)$ and American Airlines $(AAL)$ also traded sharply lower.
Delta issued its update shortly before the market closed Monday, citing reduced confidence among consumers and businesses, and economic uncertainty.
-- On an adjusted basis, the airline now expects to earn between 30 and 50 cents per share in the first quarter, roughly half its previous forecast.
-- It made similarly large cuts to projections for revenue growth, which it now expects will total at most 4%.
Delta said domestic travel is hardest hit, while pricier premium and international travel trends are still in line with its expectations.
Appetite for travel had held up even as consumers otherwise tightened their belts. But airline shares have tumbled in recent weeks, with industry analysts saying economic uncertainty would likely make households warier about planning vacations.
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(END) Dow Jones Newswires
March 11, 2025 05:35 ET (09:35 GMT)
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