Delta's stock rose 3% after beating profit estimates despite 'murky' outlook due to tariffs

From Yahoo Finance: 2025-04-09 06:32:00

Delta Air Lines reported stalled revenue growth in the first quarter and did not provide full-year guidance due to economic uncertainty from global trade tensions. The stock rose 3% in premarket trading but fell 15% in the past week due to market volatility from Trump administration tariff policies. Delta beat profit estimates but missed revenue expectations for Q1. The company cited a reduction in corporate confidence affecting corporate travel revenue growth. Delta plans to reduce capacity growth, maintain headcount, and cut capital expenditures to lower costs amid trade policy uncertainty. Despite a decline in foreign travelers to the US, Delta’s US travelers continue to book international trips. Consumer confidence readings have industry leaders concerned, even as air travel remains on track with record levels from 2024. Consumer confidence expectations index hit a 12-year low, while the University of Michigan’s consumer sentiment index fell for the third straight month. Moody’s Analytics data shows that households earning $250,000+ annually make up 50% of consumer spending, a key target for Delta. Delta CEO acknowledges “unprecedented” uncertainty in the airline industry. With other airlines reporting earnings soon, volatility for big four stocks may continue. Allspring Global Investments senior portfolio manager emphasizes the importance of strategic investment amidst uncertainty. Next test for the airline industry may come at the 2025 Paris Air Show. Delta CEO anticipates deferring international discussions until clarity on trade impacts. Delta, like other executives, maintains communication with the Trump administration.



Read more at Yahoo Finance: Delta stock pops after earnings beat, ‘murky’ outlook amid tariff uncertainty