Delta Air Lines (DAL) shares tumbled 5.55% in pre-market trading on Friday, as investors reacted to a significant price target cut and growing concerns over the impact of newly imposed tariffs on the airline industry.

The sharp decline comes after TD Cowen slashed its price target for Delta from $82 to $45, while maintaining a Buy rating on the stock. This dramatic reduction in the price target, representing a nearly 45% cut, has sparked investor concerns about the airline's near-term prospects. The adjustment suggests that analysts are reassessing their outlook for Delta in light of recent market developments and potential challenges facing the airline industry.

Adding to the pressure on Delta's stock is the looming threat of new tariffs imposed by U.S. President Donald Trump. These tariffs, part of what has been dubbed "Liberation Day," have sent shockwaves through global markets and raised fears of potential retaliation from major trading partners. The airline industry, which is particularly sensitive to economic fluctuations and international trade dynamics, could face significant headwinds if these tariffs lead to a broader economic slowdown or reduced travel demand. Investors are likely factoring in these risks as they reassess their positions in airline stocks like Delta.

Furthermore, Delta Air Lines is scheduled to report its first-quarter earnings next Wednesday. With the company's financial performance now under intense scrutiny, investors appear to be positioning themselves ahead of this critical report. The pre-market plunge suggests that some market participants may be bracing for potentially disappointing results or cautious forward guidance, given the uncertain economic environment.

As the market opens, all eyes will be on Delta to see if it can recover from this pre-market setback or if the downward pressure will persist throughout the trading session. The company's performance may also serve as a bellwether for the broader airline industry as it navigates through these turbulent economic times.