On June 19, 2024, Delta Air Lines aircraft were observed parked at Seattle-Tacoma International Airport in Seattle, Washington.
Kent Nishimura | Getty Images
Delta Air Lines has announced it will not increase its flight capacity in the latter half of the year, citing disappointing booking figures amid President Donald Trump’s fluctuating trade policies, which CEO Ed Bastian termed “the wrong approach.”
On Wednesday, Delta projected its revenue for the second quarter might decline by up to 2% or grow by as much as 2% compared to last year, while analysts had anticipated a growth of 1.9%. The airline estimates adjusted earnings per share to be between $1.70 and $2.30, in contrast to the analysts’ expectation of $2.23 per share.
The airline also mentioned it is premature to revise its 2025 financial forecasts, after confirming these targets at an investor conference just a month prior, although it affirmed its expectation to remain profitable this year. Recently, Delta lowered its earnings outlook for the first quarter, attributing this to lower-than-foreseen demand in both corporate and leisure travel.
This marks a change for Delta, the most profitable airline in the U.S., which initially started 2025 optimistic about another year of robust travel demand, reflecting a growing unease among corporate leaders regarding diminishing consumer spending appetite.
Bastian noted to CNBC that in the last six weeks, there has been a significant decline in both broad consumer and corporate confidence. He indicated that demand was “quite good” in January but began to noticeably slow around mid-February.
In recent weeks, Wall Street analysts have reduced their earnings forecasts and price targets for airlines due to concerns about dwindling demand.
He mentioned that main cabin bookings are not performing as well as previously anticipated, and corporate travel demand is being impacted as businesses reconsider some travel plans amidst workforce reductions by the Trump administration and market volatility.
Nonetheless, international and premium travel segments have shown more resilience.
Bastian indicated that while Delta had aimed to boost its flight capacity by roughly 3% to 4% in the latter half of 2025, it will now maintain flat capacity year-over-year.
“With extensive economic uncertainty surrounding global trade, growth has effectively stalled,” Bastian stated in the earnings release on Wednesday. “In this slower-growth environment, we are safeguarding our margins and cash flow by concentrating on what we can influence.”
Delta is the first among the major U.S. airlines to report its earnings. United, American, Southwest, and others are set to report later this month.
Here are Delta’s performance figures for the three months ending March 31, compared with Wall Street’s expectations 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 first quarter, Delta’s net income rose to $240 million, up from $37 million the previous year, with revenues increasing by 2% year-over-year to $14.04 billion.
Excluding Delta’s refinery sales, the airline reported adjusted earnings per share of 46 cents, a 2% increase from last year and exceeding analysts’ expectations, alongside adjusted revenue of $12.98 billion, reflecting a 3% rise from the previous year and aligning with Wall Street expectations.
