Airlines Report Bookings Drop Amid Macroeconomic Uncertainty

Core Insights - Delta Air Lines and three other airlines have revised their earnings guidance downward due to lower U.S. consumer confidence and macroeconomic uncertainty [1][2][3] Group 1: Airline Guidance Updates - American Airlines has updated its first-quarter revenue guidance to be flat year-over-year, down from a previous forecast of a 3% to 5% increase, citing factors such as wildfires and domestic leisure segment softness [2] - Southwest Airlines expects its Revenue per Available Seat Mile (RASM) to increase by 2% to 4% year-over-year, a reduction from the prior forecast of 5% to 7% [2][3] - United Airlines anticipates its first-quarter earnings to be at the lower end of its previous forecast [3] Group 2: Market Conditions - Delta Air Lines has lowered its revenue growth expectation for the March quarter to 3% to 4%, down from 7% to 9%, and its operating margin forecast to 4% to 5%, down from 6% to 8% [4] - The decline in government-related travel bookings by 50% and the impact of government spending cuts on the domestic leisure market have been noted as significant factors affecting airline performance [4] - Delta attributes the overall outlook decline to reduced consumer and corporate confidence amid increased macroeconomic uncertainty, leading to softness in domestic demand [5]