- Delta Air Lines says that global economic uncertainty over tariffs is hurting bookings.
- “Growth has largely stalled,” CEO Ed Bastian said in the airline’s first-quarter earnings release.
- Delta said it would ax plans to grow flight capacity in the second half of 2025 as a result.
Delta Air Lines warned that Donald Trump’s tariff plan is hitting the airline where it hurts.
“With broad economic uncertainty around global trade, growth has largely stalled,” CEO Ed Bastian said Wednesday in a press release alongside its first-quarter earnings.
“In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control,” he added.
As well as managing costs and capital spending, Delta has decided not to expand its capacity in the second half of the year, it said.
The airline reported quarterly revenue of $13 billion, with an operating profit of $591 million. It also reported earnings per share of 46 cents, beating analyst expectations.
This pushed Delta’s share price up in premarket trading, rising more than 3% before the bell.
Delta expects things to get better in the next quarter, with earnings per share between $1.70 and $2.30 on an operating margin between 11% and 14%.
It said total revenue compared to last year could fall 2% or rise up to 2%.
More follows …
