Airlines see lower customer demand, cut back financial expectations

Many American airlines contacted their quarterly financial expectations, as the industry exposes a softer request than economic uncertainty and other factors.

The southwest, American and Delta were among the transport companies that announce changes in its instructions.

South West said that its revenue for each mile is expected to rise by 2-4 % in the first quarter, which are forecasts less than the 5-7 % growth that I expected previously.

Travelers use a checkpoint in southwest airlines at Logan International Airport in Boston on July 19, 2019. (Scott Eisen / Bloomberg Via / Getty Images)

“Compared to the previous estimate of the company, the point of evidence of the lower unit revenue is almost due to the high completion factor than expected, the lowest government travel, and the greater effect of forest fires in California compared to the original,” said the transportation company in one of the Country of the Securities Committee (SEC).

Southern West Airways announces a major change in the long -term feature

Several forest fires in the Los Angeles region erupted in early January, with the largest number of fire – a Palisades fire – which burns more than 23,700 acres before the firefighters obtained it.

South West said: “The remaining part of the first decrease is attributed to smoothness in reservations and demand trends with weakness of the total environment,” said South West.

Meanwhile, US Airways said that “the revenue environment was weaker than it was initially expected” for the first quarter “due to the impact of flight 5342 and softness in the local entertainment sector, primarily in March.”

US Airways sits near Hill at Dallas/Fort Worth International Airport in Texas, April 4, 2012. (Tim Sharp photos / Reuters)

A military helicopter and 5342 US Airlines aircraft collided near the air near Ronald Reagan Washington Airport in Washington, DC in late January. All 64 people were killed on the plane and the three members of the helicopter.

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In light of these factors, the airline said it is now expecting to see “almost flat” revenues for the first three months of the year compared to the first quarter of last year. I previously expected an increase of 3-5 %. It has also changed the expected quarterly quarterly loss for each shares reduced from 0.20-0.40 dollars to 0.60-0.80 dollars, according to the SEC report.

Delta is guided by the total revenue growth in the first quarter, expecting an increase of 3-4 % now instead of growth 7-9 % that I expected when it issued previous guidelines in mid-January.

Inactive aircraft from the Delta air lines that were seen during the Covid-19s in JFK Airport. (Lev Radin/Pacific Press/Lightrocknet via/Getty Images)

Delta said: “The outlook was affected by the recent reduction in the confidence of consumers and companies caused by increased uncertainty in the macro, which prompted the smoothness in the local demand.” “Excellent and international revenue growth trends correspond to expectations and reflect the elasticity of the diverse revenue base in Delta.”

The three airlines issued updates for their directives before presentations at the JPMorgan Industries Conference. They also come as concerns about whether the United States can fall into stagnation and uncertainty caused by the liquid situation in definitions has grown in recent weeks, which weighs both American consumers and companies.

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Southwest witnessed approximately 175.5 million operating passengers in 2024. In the same year, America achieved 226.4 million, while Delta reported more than 200 million.