Delta Air Lines has reduced its 2025 profit forecast due to weaker-than-anticipated demand in 2024 and an industry-wide surplus of flights. The company cited tariffs and cautious consumer spending as key factors contributing to the slowdown in travel. Despite a strong second quarter performance, with earnings of $0.87 per share, Delta’s revenue of $13.5 billion missed Wall Street’s forecasts of $13.7 billion. The airline expects third-quarter revenue to range between $14.1 billion and $14.5 billion, down from previous projections of $14.5 billion. Delta’s President Ed Bastian noted that while the second quarter was solid, the overall demand environment has been more challenging than anticipated. The company’s shares fell 3.3% following the earnings report. This adjustment comes as airlines grapple with new competition, capacity issues, and changing consumer behavior. Industry analysts suggest that airlines may need to consolidate routes and adjust pricing strategies to better match demand.

Post Views: 9