On July 1, 2023, Delta Airlines and American Airlines planes were seen at Ronald Reagan Washington National Airport in Arlington, Virginia.
Stefani Reynolds | AFP | Getty Images
Airlines are cutting first-quarter profits and sales estimates, warning that a weaker economic backdrop is weighing travel demand.
Before JPMorgan Chase American Airlines Tuesday said it expected to lose 60 cents per share and 80 cents per share in the first three months of the year, a loss of 20 cents per share, compared with a previous forecast of 40 cents per share. It said revenues could remain flat over the year compared to the increase of up to 5% in January.
“The income environment is weaker than initially expected (mainly March), due to the impact of Flight 5342 and the softness of the domestic leisure sector,” the American said in a securities filing. A fatal collision In January, a regional jet and an Army helicopter in Washington, D.C.
The prediction was then made Delta gas line Cut it First quarter estimates After the market closes. Delta said its outlook was “affected by consumer and company confidence caused by increased macro uncertainty driving soft domestic demand.”
Airline stocks extended losses in listed trading Tuesday morning, with Delta falling more than 8% and the U.S. falling nearly 4% nearly 4%.
Southwest Airlines It also cut its revenue guidance, improving by no more than 4%, down from a 7% forecast in the first quarter of last year.
In addition to leisure travel, the carrier also pointed out that Government Travel Since the latest Trump administration began.
This is a developing story. Please check it for updates.
