Delta Air Lines (DAL) saw its stock plummet 5.09% in pre-market trading on Monday, as the airline sector faced headwinds from slowing travel demand and a broader market selloff. The significant drop comes as investors react to concerning signals about U.S. travel demand and economic uncertainty.

The selloff was primarily triggered by Virgin Atlantic's report of slowing demand for U.S. to UK travel in recent weeks. Virgin Atlantic, which is 49% owned by Delta, stated that they've experienced flat or negative demand growth in some weeks, attributing it to general consumer uncertainty in the U.S. This news echoes Delta's own warning from March 10, when the airline slashed its first-quarter profit estimates due to weakening U.S. consumer and business confidence.

Delta's stock decline is part of a broader trend affecting the travel sector, with other major airlines and travel-related companies also experiencing significant drops in pre-market trading. Despite these challenges, Delta CEO Ed Bastian recently signaled his commitment to the role and hinted at a succession plan, indicating the company's focus on long-term stability. However, the current market reaction suggests investors are more concerned with immediate economic pressures and their potential impact on Delta's performance in the coming months.