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Delta Air Lines has halved its earnings forecast for 2025, citing macroeconomic uncertainty and geopolitical tensions as key factors in the revision. Earlier this year, the company experienced a surge in share prices to post- pandemic highs, buoyed by strong financial performance in 2024 and optimistic projections from its leadership team. The reelection of former President Donald Trump had also contributed to increased confidence within the airline industry due to his economic policies.
In recent weeks, however, macroeconomic surprises have compelled Delta to adopt a more cautious stance on its market outlook for 2025. This shift has led to a significant sell-off of Delta shares, with valuations dropping approximately 5.5%. Aftermarket trading figures indicate a further decline of around 10.5%, suggesting imminent price drops when trading resumes on Tuesday morning.
In a filing with the Securities and Exchange Commission (SEC), Delta Air Lines expressed concerns about changing consumer spending patterns amid economic uncertainties. The airline now anticipates year-on-year growth between 3% and 4%, down from an earlier estimate of between7% and9%. Initial earnings per share were expected to reach up to $1; however, revised estimates place them at $0.30 to $0.50 per share.
