Delta shares plunge 14% after airline slashed profit forecast: ‘We saw companies start to pull back'

Core Viewpoint - Delta Air Lines has significantly reduced its first-quarter profit estimates due to economic uncertainty, leading to a 14% drop in its shares, marking a concerning trend for the airline industry as consumer and business confidence wanes [1][2][4]. Company Summary - Delta now expects a profit in the range of 30 to 50 cents per share, down from previous estimates of 70 cents to $1 [3]. - The airline's first-quarter revenue growth is now projected at 3% to 4% year-on-year, a decrease from the earlier forecast of 7% to 9% [9]. - Delta's shares have declined 24% over the past month, reflecting broader challenges in the airline sector [6]. Industry Summary - The S&P 500 passenger airlines index has fallen 22% in the past month, indicating a significant downturn in the airline industry compared to a 7.5% decline in the S&P 500 index [6]. - Other airlines are expected to revise their forecasts as economic conditions worsen, with analysts at Deutsche Bank highlighting an emerging economic "soft patch" affecting revenue estimates [7]. - Seaport Research Partners has also cut its 2025 pre-tax profit estimates for major airlines, indicating that the current outlook does not account for potential trade wars or cuts in government spending [9].