Delta Air Lines CEO Ed Bastian said President Trump was taking “the wrong approach” with tariffs as the carrier pulled its financial forecast for 2025 and scaled back expansion plans for later this year.
The Atlanta-based airline, the second largest domestic carrier, said on Wednesday that it will halt previously planned flight expansions for the second half of 2025 — attributing the decision to weakening bookings and economic uncertainties arising from Trump’s shifting trade policies.
“With broad economic uncertainty around global trade, growth has largely stalled,” Bastian said in Wednesday’s earnings release.
“In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control.”
The airline revised its second-quarter financial expectations, now projecting a range between a 2% decline and 2% growth in revenue compared to last year.
These figures fell short of Wall Street’s earlier estimate of a 1.9% increase.
Delta also expects adjusted earnings per share between $1.70 and $2.30, versus analysts’ forecast of $2.23.
Just last month, Delta reiterated its optimistic full-year targets at an investor conference.
However, company officials indicated Wednesday it was premature to update the 2025 financial guidance due to the unpredictability of the market, although they reaffirmed confidence that Delta would remain profitable.
At the beginning of the year, Bastian confidently declared it would be the “best financial year in our history.”
However, escalating market volatility and policy-driven economic uncertainty have changed the landscape considerably.
Delta’s caution mirrors broader industry concerns, as corporate leaders and analysts increasingly worry about consumers pulling back spending amid fluctuating confidence levels.
“In the last six weeks, we’ve seen a corresponding reduction in broad consumer confidence and corporate confidence,” Bastian told CNBC, adding that demand was “quite good” in January before experiencing a noticeable decline starting in mid-February.
Bastian specifically noted a decrease in main cabin bookings, which have underperformed relative to earlier expectations.
While initial demand at the beginning of the year showed promising growth of around 10%, the momentum has slowed dramatically.
He attributed this slowdown partly to businesses reconsidering travel plans, government workforce reductions by the Trump administration and general market instability.
The White House did not immediately provide a response when asked for comment.
Despite overall softening demand, Bastian highlighted that international travel and premium cabin bookings have remained relatively stable.
Delta initially planned a 3% to 4% expansion in flight capacity for late 2025 but now expects no growth compared to last year.
Delta’s recent results offered some positive news. For the quarter ending March 31, adjusted earnings per share were 46 cents, outperforming Wall Street’s expectation of 38 cents.
Adjusted revenue matched predictions at $12.98 billion, marking a 3% rise compared to the previous year. Net income reached $240 million, significantly higher than last year’s $37 million.
Delta’s results set the stage as other major carriers, including United, American and Southwest Airlines, prepare to announce their own quarterly earnings later this month.
