Airline CEOs are recalibrating their revenue expectations due to a flurry of adverse events, including natural disasters and air crashes. At a JPMorgan conference, Delta CEO Ed Bastian expressed concern over a "parade of horribles" impacting the industry, leading to a $500 million reduction in first-quarter revenue projections. Similarly, American and Southwest Airlines have issued downward adjustments due to diminished consumer demand and safety concerns. While United Airlines has not changed its guidance, they predict landing at the lower end of forecasts due to falling government travel, all leading to significant drops in stock prices for major airlines.
Delta CEO Ed Bastian described the current situation as a "parade of horribles", indicating the combination of recent events severely impacts airline revenue expectations.
American Airlines CEO Robert Isom noted that if only the wildfires and snowstorms had affected the airlines, major guidance adjustments might not have been necessary.
Airlines are now cutting their earnings forecasts due to a mix of softened consumer demand, safety concerns, and declining government travel, all exacerbated by recent natural disasters.
United's CEO Scott Kirby mentioned while they haven't adjusted guidance, they expect to land at the lower end of forecasts due to reduced demand.
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