Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Delta Air Lines (NYSE:DAL) has said it will not reaffirm its full-year financial guidance, citing uncertainty around the trajectory of U.S. President Donald Trump's tariff plans.
"Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook," the carrier said in a statement on Wednesday. Delta noted that it will provide a financial update later in the year "as visibility improves."
CEO Ed Bastian added that, due to the trade-induced murkiness around the wider economic outlook, "growth has largely stalled."
Bastian flagged that "in this slower-growth environment," Delta is moving to protect profit margins and cash flow by "focusing on what we can control," including reducing planned capacity growth in the second half of 2025 "to flat over last year" and actively managing costs and capital expenditures.
Still, Bastian said, with its "bias toward action" and a recent decline in fuel prices, Delta is well-positioned to deliver "solid profitability and free cash flow" this year. For the June quarter, Delta is forecasting income of $1.5 billion to $2 billion.
Prior to the earnings, analysts at Vital Knowledge had warned that sentiment around the airline industry had soured due to concerns that Trump's sweeping tariffs, which include a minimum 10% for all U.S. imports and targeted rates of up to 50%, will drive up inflation and weigh on travel demand.
Recent economic data showed that consumer sentiment plunged in March, prior to the full unveiling of Trump's tariffs earlier this month, as Americans fretted over their personal finances, business conditions, and unemployment. Year-ahead inflation expectations also jumped.
The figures suggested that, against the backdrop of levy-fueled uncertainty, shoppers were becoming more cautious and may be pulling back on spending on nonessential items. Fears have subsequently risen around a potential recession in the broader economy, although the latest numbers have not indicated that the U.S. is already in a downturn.
Atlanta-based Delta, which previously slashed its first-quarter profit forecast in half and warned that the economic concerns were denting travel demand, posted quarterly passenger revenue of $11.48 billion, in line with Bloomberg consensus estimates.
Total (EPA:TTEF) operating in the three months ended on March 31 inched up by 2% versus a year-ago to $14.04 billion, while operating income slipped by 7% to $569 million. Basic earnings per share came in at $0.37.
Shares in Delta rose in premarket U.S. trading.