Delta Air Lines descending by 14% following lowered Q1 guidance; weighs on many peers
- Notable laggards: UAL -11.4%, AAL -8.7%, LUV -5.6%, ULCC -2.9%, JBLU -1.0%
>>> Delta Air Lines lowers its Q1 guidance due to recent reductions in consumer and corporate confidence caused by increased macro uncertainty (50.33) -2.95
- Co issues downside guidance for Q1 (Mar), sees EPS of $0.30-0.50 (Down from $0.70-1.00), excluding non-recurring items, vs. $0.82 FactSet Consensus; sees Q1 (Mar) revs of up +3-4%, down from +7-9%, implying $12.9-13.1 bln, excluding non-recurring items, vs. $13.52 bln FactSet Consensus.
- Co noted its outlook has been impacted by the recent reduction in consumer and corporate confidence caused by increased macro uncertainty, driving softness in Domestic demand. Premium, international and loyalty revenue growth trends are consistent with expectations and reflect the resilience of Delta's diversified revenue base.