Delta Airlines cites softening domestic demand for flights, cuts outlook

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.

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%.

This article was written by Adam Button at www.forexlive.com.