Last week Target highlighted softness from the US consumer and now it’s Delta Airlines.
The company cut its first quarter revenue growth forecast to 3% to 4% from its earlier forecast of 7% to 9% y/y. The company sees earnings of 30-50 cents from the earlier guide of 70-cents to $1.
“The outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand, ” the company said in a presentation slated for tomorrow but published today.
Shares are down 16% after hours following a 5.5% decline in regular trading.
Delta indicated at 43 after hours
Air travel is a good indication of consumer and business spending as it’s one of the first things to be cut when economic uncertainty hits.
For shareholders, it’s been a wild ride in the past few months as shares nearly doubled since August before falling by almost 40%.
Feed from Forexlive.com