Airlines see lower customer demand, cut back financial expectations — here are the companies hurting the most

Core Insights - Major U.S. airlines, including Southwest, American, and Delta, have revised their quarterly financial expectations downward due to softer demand stemming from economic uncertainty and other factors [1][5][11] Group 1: Southwest Airlines - Southwest now expects its revenue per available seat mile to increase by 2-4% in the first quarter, down from a previous forecast of 5-7% [1][8] - The airline has adjusted its forecasted quarterly adjusted loss per diluted share from a range of $0.20-0.40 to$0.60-0.80 [9] - The decrease in revenue expectations is attributed to a higher-than-expected completion factor, reduced government travel, and the impact of California wildfires [2][5] Group 2: American Airlines - American Airlines reported a weaker revenue environment than initially expected for the first quarter, primarily due to the impact of Flight 5342 and softness in the domestic leisure segment [6][11] - The airline now anticipates approximately flat total revenue for the first three months of the year compared to the same period last year, a revision from a previous forecast of a 3-5% increase [7][11] Group 3: Delta Airlines - Delta has lowered its first-quarter total revenue growth forecast to 3-4%, down from an earlier expectation of 7-9% [9][10] - The airline attributes the outlook change to a reduction in consumer and corporate confidence due to increased macroeconomic uncertainty, affecting domestic demand [10]