Airlines see lower customer demand, cut back financial expectations

Several major American airlines have recognized their quarterly financial expectations, as industry concerns the softer demand for economic uncertainty and other factors.

Southwest, American and Delta were Among the carriers To announce changes to their advice.

Southwest said its revenue per mile available should now increase by 2 to 4% in the first quarter, a forecast less than the 5 to 7% growth it predicted.

Travelers use a Southwest airline registration kiosk at Logan International Airport in Boston on July 19, 2019. (Scott Eisen / Bloomberg via / Getty Images)

“Compared to the previous estimate of the company, approximately one point of the lower unit income guide is mainly due to the higher completion factor than planned, less government trips and a greater impact on the part of California forest fires that origin,” said the carrier in a deposit of Securities and Exchange Commission (SEC).

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Several forest fires raged in the Los Angeles region in early January, with the largest of the flames – the palisades fire – burning more than 23,700 acres before being contained by the firefighters.

“The rest of the decrease is mainly attributable to the sweetness of reservations and the trends of demand, because the macro environment has weakened” “” The southwest also said.

In the meantime, American airlines said that “the income environment was lower than initially planned” for the first quarter “due to the impact of flight 5342 and the sweetness of the interior leisure segment, mainly in March.”

American Airlines Airliners is seated near a hanger at Dallas / Fort Worth International Airport in Texas, April 4, 2012. (Tim Sharp / Reuters Photos)

A military helicopter and American Airlines Flight 5342 He collided outdoors near Ronald Reagan Washington National Airport in the DC region in late January. The 64 people aboard the plane and the three individuals of the helicopter were killed.

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In light of these factors, the airline said it was now expecting to see total “approximate” income for the first three months of the year compared to the first quarter of last year. He had previously planned an increase of 3 to 5%. He also changed the fork of his quarterly adjusted loss provided by action diluted from $ 0.20-0.40 to 0.80 to $ 0.80, according to a dry file.

Delta guided the total growth in revenues in the first lower quarter, expecting an increase of 3 to 4% now instead of the 7 to 9% growth that she expected when she published advice prior to mid-January.

Inactive aircraft of Delta Airlines seen during the COVVI-19 pandemic at JFK airport. (Radin lev / Pacific Press / Lightrocket via / Getty Images)

“The prospects have been affected by the recent reduction in consumer confidence and businesses caused by increased macro uncertainty, which stimulates the sweetness of domestic demand”, ” Delta said. “Trends in growth, international, international and loyalty income are in accordance with expectations and reflect the resilience of the Delta diversified income base.”

The three airlines have published the updates of their advice before presentations at the JPMorgan Industrials conference. They are also worrying as to whether the United States could fall into a recession and uncertainty from the fluid situation Prices have increased in recent weeks, weighing on American consumers and businesses.

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Southwest saw nearly 175.5 million passengers enrolled in 2024. During the same year, American scored 226.4 million, while Delta said more than 200 million.