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Investing.com -- Delta Air Lines (NYSE: NYSE:DAL) shares tumbled 7% in after-hours trading following the company’s announcement that it has lowered its guidance for the first quarter. The revised forecast was disclosed ahead of a presentation at the J.P. Morgan Industrials Conference on March 11, 2025.
The Atlanta-based airline has adjusted its expected total revenue growth for the first quarter to 3-4%, a decrease from its initial forecast of 7-9%. Delta cited a recent dip in consumer and corporate confidence due to increased macroeconomic uncertainty, which has led to a softening in domestic demand. Despite this, premium, international, and loyalty revenue growth trends are in line with expectations, showcasing the strength of Delta’s diversified revenue base.
The updated guidance also includes an anticipated operating margin of 4-5% and earnings per share (EPS) between $0.30 and $0.50. This is a significant reduction from the previously projected operating margin of 6-8% and EPS of $0.70 to $1.00.
Delta’s announcement reflects broader concerns in the airline industry as companies grapple with fluctuating demand and economic headwinds. As airlines continue to navigate a complex global environment, Delta’s latest guidance adjustment serves as a reminder of the sector’s sensitivity to macroeconomic factors.
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