Delta(DAL) PYMNTS.com·2025-03-11 00:47Core Viewpoint - Delta Air Lines has revised its March quarter outlook downward due to macroeconomic uncertainties affecting domestic demand, with expectations for revenue growth and operating margin both reduced compared to previous guidance [1][2][3]. Revenue Outlook - Delta now anticipates total revenue growth of 3% to 4% year over year for the March quarter, a decrease from the earlier forecast of 7% to 9% [2]. - The operating margin is expected to be between 4% to 5%, down from the previous guidance of 6% to 8% [2]. Demand Factors - The decline in outlook is attributed to reduced consumer and corporate confidence stemming from increased macro uncertainty, leading to softness in domestic demand [3][6]. - Despite the challenges in domestic demand, premium, international, and loyalty revenue growth trends remain consistent with expectations, indicating resilience in Delta's diversified revenue base [3]. Historical Context - In January, Delta had expressed optimism about demand trends, expecting adjusted revenue to be 7% to 9% higher than in 2024, driven by growth in capacity and unit revenue [4]. - The airline's previous guidance was based on strong momentum as it closed out 2024, with accelerating demand trends noted in the fourth quarter [3]. Safety Concerns - Recent safety incidents, including a flight crash, have raised concerns that may have exacerbated the softness in domestic demand, affecting consumer confidence among both leisure and business travelers [5][6]. - The Conference Board reported a significant decline in consumer confidence in February, attributed to worries about trade and tariffs, marking the largest monthly drop since August 2021 [6].