Delta dives after cutting Q1 outlook
Delta Air Lines shares are losing altitude after-hours following a deep cut to its outlook for Q1 revenue and earnings, which cited cratering confidence among consumers and corporations.
Shares of Delta were down 14% after-hours, following a 5.5% decline during the regular session. Other airlines were also getting walloped after-hours: American Airlines fell 8.8%, United Airlines dropped 11%, and Southwest Airlines fell 5%.
America’s largest airline says Q1 sales will now grow between 3% and 4%, down from the previous rosy outlook of 7% to 9% it offered back in January. It also axed its forecast for Q1 EPS to between $0.30 and $0.50, down from $0.70 to $1.00. The company explained:
“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand. Premium, international and loyalty revenue growth trends are consistent with expectations and reflect the resilience of Delta’s diversified revenue base.”
America’s largest airline says Q1 sales will now grow between 3% and 4%, down from the previous rosy outlook of 7% to 9% it offered back in January. It also axed its forecast for Q1 EPS to between $0.30 and $0.50, down from $0.70 to $1.00. The company explained:
“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand. Premium, international and loyalty revenue growth trends are consistent with expectations and reflect the resilience of Delta’s diversified revenue base.”
