Delta Air Lines: Navigating Profit Peaks and Economic Risks

Delta Air Lines reduces its profit forecast for the year due to supply chain challenges and economic uncertainties, causing its shares to drop by 6.2%. Despite strong holiday demand, the company now expects an adjusted per-share profit of $6 to $7 for 2024, down from its previous target of over $7. The airline is facing supply chain problems impacting aircraft deliveries and increased maintenance costs, with CEO Ed Bastian citing ongoing uncertainty in the supply chain, maintenance arena, and economic outlook. However, the company continues to see strong demand in all markets and has announced a deal with Airbus to purchase 20 A350-1000 widebody aircraft.