Delta, Southwest, American Airlines Cut Forecasts, an Early Alarm About Consumer Spending
Airlines flashed an early-warning signal on Tuesday, suggesting that consumers and businesses were starting to get nervous amid wider economic and political uncertainty.
Several carriers cut their financial forecasts for the first few months of the year, saying that revenue would be weaker than expected. They pointed to a number of reasons: bad weather, high-profile plane crashes, and less spending by consumers, businesses and the federal government.
'We just went through a little bit of a parade of horribles,' Ed Bastian, the chief executive of Delta Air Lines, said at the J.P. Morgan Industrials Conference on Tuesday morning.
Delta, Southwest Airlines and American Airlines all downgraded their revenue forecasts for the first quarter compared with earlier projections. Those revised projections suggest that uncertainty and flagging economic confidence have started to take a toll on travel, which can be an early indicator for other industries.
But the news was not all bad. Airlines still expect revenue in the first quarter to be about the same, if not higher, than in the same period last year. And most are optimistic about the rest of 2025.
The softening travel spending also appeared to be limited, for now, to flights within the United States and to lower-priced fares, according to Delta and United Airlines.
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