Airlines First-Quarter Profit and Sales Estimates
Airlines are cutting their first-quarter profit and sales estimates due to weaker economic backdrop and reduced travel demand, impacted by factors like the deadly collision of American Airlines regional jet and an Army helicopter, government travel decline, and increased macro uncertainty.
Key Points
- Delta and American Airlines have revised their first-quarter estimates downwards
- Factors impacting the industry include the deadly collision of Flight 5342, reduced government travel, and increased macro uncertainty
- United Airlines is retiring 21 aircraft early as a cost-saving measure
Pros
- Long-haul international and premium travel demand remain bright spots
- Executives are optimistic about longer-term trends
Cons
- Weaker revenue environment than initially expected
- Sharp decline in government travel and domestic leisure segment