Airline -COS ring alarm bells as American Airlines (Nasdaq: AAL) at Delta and Southwest in Slashing Guidance

The American Airlines Group (AAL) has Carriers Delta Air Lines (DAL) and Southwest (LUV) today in view of the fear of the US economy and a weak prospect of demand with the guidelines for the guidance of carriers. The airline group cited security problems and weaker leisure demand, since the income in the current business quarter 2025 last year would be flat compared to growth between 3% and 5%.

Fatal crash harms the demand of the eel

After the fatal collision with medium air, it comes between one of its planes and a helicopter of the US Army over the Potomac River in January. The crash did not leave any survivors and influenced the way passengers look at the airline, and the company said today in a regulatory registration that “the income environment was weaker due to the effects of flight 5342 than was initially expected, while he also blamed” softness in the inland leisure segment “.

As a result of these softer demand trends, AAL expects to report a wider one in the first quarter of a loss per share of $ 0.60 to 0.80. In January it predicted a loss between 0.20 and 0.40 USD per share.

US airlines feel the heat

The fears of a softer economic view also moved Dal and LUV to reduce the instructions for the current quarter, which led to considering the ability of the industry to survive another storm if it is tried to secure its recovery from pandemic. The warnings come as managers in the aviation industry are gathered into a JPMorgan conference on which they will discuss everything from demand trends to delays in the delivery of aircraft.

Delta Air Lines lowered the profit view and referred to the “recent reduction in consumer and corporate confidence, which is caused by increased macro uncertainty and promoting softness in domestic demand”. Dal reduced its profit forecast in the first quarter to $ 0.30 and 0.50 per share compared to previous guidelines from $ 0.70 to $ 1, and sales growth would not exceed 5% compared to a previous estimate of 6 to 8%.

Southwest Airlines also reduced forecasts and advised investors that the growth of the units in the first quarter of 2025 lies between 2% and 4%, compared to the increase in the previous area of ​​5% and 7%.

Southwest accused fewer state trips and a greater influence of the California forest fires than originally estimated. “The rest of the decline is primarily due to the softness in bookings and demand trends, since the macro environment has weakened,” said the company in its 8 k filing.

It comes under pressure yesterday because of the health of the US economy.

The shares of DAL, EAL and United Airlines (UAL) fell on Tuesday morning, while LuV collected plans to accusement of passengers for checked bags.

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