According to the Bank of America, a cut in the guidance of the first quarter of delta air lines indicates the increasing lack of confidence consumers and corporations. According to the filing of its recent securities, the company reduced its approach to the current quarter, citing weak demand and “recent reduction in consumer and corporate trust”. Bofa’s analyst Andrew Didora wrote in a note on Monday, “Macroeconomic uncertainty is coming out in real time as lentils (delta) is the first airline to cut off its 1Q25 revenue growth approach to 400-500bps to 400-500bps to +7-9% to +3-9%.” “We knew that February was soft in late February after our visit to our AAL (American Airlines) headquarters, but this cut was deeper than expected.” Delta shares have declined by about 12% in the last two days, and have shed about 23% years to date. Dal 1D Mountain Delta on Tuesday “Okay, sometimes the market is telling you something; Lower airline stock prices were actually a further indicator of soft demand,” Barclay analyst Brandon Oglancesi said in a research note on Monday. “Weakness is no longer a debate,” Oglansky said, corporate traveling tenderness in revenue. As an example, he highlighted the journey related to the government in industries such as defense, autos and media, which have fallen. There is a high probability that other major airlines will also reduce their close -term forecasts, Oglancesi said. Delta’s recession approach can also carry forward the difficult time for a broader travel industry. Richard Clarke of Bernstein wrote on Tuesday, “Lodging and Cruise Stock” will also experience a slight disturbance. Clarke said, “There is no escape from the current direction of the journey, and any expected boost to travel from Trump Presidency is being replaced by recession in confidence for both holidays and business.”
