Delta Air Lines won’t expand flying within the second half of the 12 months due to disappointing bookings amid President Donald Trump’s shifting trade policies, which CEO Ed Bastian called “the incorrect approach.”
Delta on Wednesday forecast its second-quarter revenue to say no as much as 2% or grow as much as 2% over last 12 months, while Wall Street had been expecting growth of 1.9%. The airline expects adjusted earnings per share of $1.70 to $2.30, compared with analysts’ estimates of $2.23 a share.
The carrier said it is just too early to update its 2025 financial guidance, a month after it confirmed the targets at an investor conference, though Delta said Wednesday it still expects to be profitable this 12 months. Last month, Delta cut its first-quarter earnings outlook, citing weaker-than-expected corporate and leisure travel demand.
It’s a shift for Delta, essentially the most profitable U.S. airline, which began 2025 upbeat about one other 12 months of strong travel demand, with Bastian predicting it might be the “best financial 12 months in our history.”
Bastian’s latest comments show growing concern amongst CEOs about consumers’ souring appetites for spending and the impact of a few of Trump’s policies. In November, Bastian said the Trump administration’s approach to industry regulation would likely be a “breath of fresh air.”
Wall Street analysts have slashed their earnings estimates and price targets for airlines in recent weeks on fears of slowing demand.
“Within the last six weeks, we have seen a corresponding reduction in broad consumer confidence and company confidence,” Bastian told CNBC. He said that demand, overall, was “quite good” in January and that things “really began to slow” in mid-February.
Bastian said most important cabin bookings are weaker than previously expected. He said that travel demand that was growing about 10% at first of the 12 months has since slowed because some firms are rethinking business trips, the Trump administration has cut the federal government workforce and markets are reeling. The White House didn’t immediately reply to a request for comment.
Bastian said international and premium travel, which has been growing faster than sales from the coach cabin, have been relatively resilient.
Delta planned to expand flying capability by about 3% to 4% within the second half of 2025, Bastian said in an interview. Now the carrier’s capability will probably be flat 12 months over 12 months.
Delta Air Lines planes are seen parked at Seattle-Tacoma International Airport on June 19, 2024 in Seattle, Washington.
Kent Nishimura | Getty Images
“We expect this to be the primary of many 2H25 capability reduction announcements from the airlines this quarter,” TD Cowen airline analysts Tom Fitzgerald and Helane Becker wrote after Delta released its outlook.
A few of the future capability cuts could include Canada, where U.S.-bound travel has declined, and Mexico, Delta President Glen Hauenstein said. For Mexico, he said there may be less demand for travelers visiting family and friends moderately than a drop in business travel.
“With broad economic uncertainty around global trade, growth has largely stalled,” Bastian said in Wednesday’s earnings release. “On this slower-growth environment, we’re protecting margins and money flow by specializing in what we will control.”
Delta is the primary of the most important U.S. carriers to report earnings. United, American, Southwest and others are scheduled to report later this month.
Tariffs and potential retaliatory duties could drive up the prices of imported components for the U.S. aerospace industry.
Delta’s Bastian, nevertheless, said the corporate will defer any Airbus aircraft that’s affected by tariffs. Airbus produces airplanes in Europe but additionally uses imported components in its Mobile, Alabama, factory.
Here’s how the corporate performed within the three months ended March 31, compared with what Wall Street was expecting, based on consensus estimates from LSEG:
- Earnings per share: 46 cents adjusted vs. 38 cents expected
- Revenue: $12.98 billion adjusted vs. $12.98 billion expected
In the primary quarter, Delta’s net income rose to $240 million, up from $37 million last 12 months, with revenue up 2% 12 months over 12 months to $14.04 billion.
Stripping out Delta’s refinery sales, Delta posted adjusted earnings per share of 46 cents, up 2% from last 12 months and above analysts’ expectations, and adjusted revenue of $12.98 billion, up 3% from last 12 months and consistent with Wall Street expectations.
