Delta Air Lines’ record year under threat from trade war

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Delta Air Lines warns that President Donald Trump’s flashed tariff threatened to predict this year’s record in the latest sign of US consumer pain.

The Atlanta -based career on Wednesday, from its best fiscal year to forecasts, is a warning of growing uncertainty from a deep global trade war that depends on the confidence of fragile consumers already.

In January, Delta said that this year’s record annual profit is expected in the continuation of payment for the premium seat. However, two months later, it took the alarm Corporate and consumer spending And its first quarter has reduced the forecast for sales and earnings.

By presenting the quarterly results on Wednesday, the CEO, the CEO, said that the airline’s full-year guidance would be “premature” due to “lack of economic transparency”. It was before Pre-tax Of $ 6bn this year.

He said: “With a wide economic uncertainty around global trade, growth has been halted mainly”, adding that the airlines “is protecting the margin and cash flow by focusing on what we can control”. As part of this goal, Delta In the second half of the year, it will have the power to flying at the level of the last year instead of increasing it, as well as “actively handling” and spending.

The update has followed the recession of rival airlines with American airlines and southern -western airlines in recent week Face to high prices As a result of Trump’s trade war.

A Balothir for the Greater Economy of the Airline Sector, customers usually return to travel on flights while in a strong financial position.

Trump’s tariffs already hit the technology, automotive and consumer product industries because of the impact on their international supply chain, stock priced hammers and companies that may go to customers.

The impact on the airline is less directly directly, but this sector will probably point to the symptoms of broad economic pain, as customers spend travel from travel to more essential products that increase prices.

“A smart customer [bringing forward] Buying cars, electronics and clothes before the tariff before the tariff, “Industrial analyst Brett Snyder, who has published the Cranky Flyer website.

Delta says that it is expected to earn between $ 1.5bn in the second quarter and $ 2 billion, the first-fourth of the year has decreased by 7 percent of the operating income of $ 569mn.

It says that it has achieved an adjusted 46 cent per share in the first quarter, it falls within the scheduled prediction range last month. It was originally expected to earn 70 cents and $ 1 per share between January and March.

It also added: “Given our strength position … and due to the decrease in fuel prices, Delta is in a good position to supply the OG profit and free cash flow for the year.”