Delta Air Lines slashed sales and earnings expectations for the first quarter, blaming a decline in consumer and corporate confidence triggered by economic “uncertainty”.

The Atlanta-based group’s profit warning after the market close on Monday was in stark contrast to the guidance it provided two months ago, in which it painted a much more upbeat outlook than rivals owing to expectations that passengers’ continued willingness to pay for premium seats would push it to record profits this year.

Delta’s cautious outlook, which sent its shares tumbling, is one of the strongest signs so far that Donald Trump’s tariffs are eroding consumer and business sentiment. Wall Street stocks dropped sharply on Monday after the president shrugged off recession concerns even as Wall Street banks cut their US economic forecasts.