Delta Air Lines Faces Turbulence Amid Economic Uncertainty

Delta Air Lines has halved its first-quarter profit forecasts, attributing the cut to weakened consumer and business confidence amid U.S. economic uncertainties. This has led to a decline in airline stocks, with Delta's shares dropping significantly. The overall outlook for the airline industry appears tumultuous, with revenue forecasts being revised downward.

Delta Air Lines has dramatically cut its first-quarter profit estimates by half, leading to a 14% drop in its shares, the airline announced Monday. The CEO cited a weakening economic climate in the U.S. as a major factor affecting consumer and business travel.

CEO Ed Bastian explained on CNBC that corporate spending began to falter due to uncertainty, exacerbated by tariffs and prospective levies, impacting consumer confidence. The Atlanta Federal Reserve indicates possible economic contraction in the coming quarter.

The airline sector faces potential turbulence as travel spending mirrors economic activities, threatening revenue. Delta's revised profit expectation is between 30 and 50 cents per share, down from earlier estimates.

(With inputs from agencies.)