Delta Air Lines has reduced its 2025 profit forecast due to lower-than-anticipated travel demand and the impact of tariffs in 2024. The airline is grappling with hesitant consumers who are shortening and reducing the number of trips they take, a trend exacerbated by inflation and trade barriers. This slowdown has resulted in an excess of flight capacity in the industry. Despite efforts to cut costs and optimize operations, Delta’s shares fell approximately 2% in extended trading following the announcement. Other airlines, including American Airlines, have also reported similar challenges. Analysts suggest that while Asian markets remain resilient, the U.S. airline industry is experiencing a tough period due to high prices and sustained inflation.

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