Delta airlines It will not expand flying in the second half of the year due to the disappointing reserves amid the changing commercial policies of President Donald Trump, that CEO Ed Bastian called “the incorrect approach.”
The carrier said that it is too early to update his financial guide of 2025, one month after confirming the objectives at an investor conference, although Delta said Wednesday that he is still waiting to be profitable this year. Last month, Delta reduced his profits of the first quarter, citing the demand for corporate trips and the weakest leisure than expected.
It is a change for Delta, the most profitable US airline, which began 2025 optimistic about another year of strong travel demand, and Bastian predicts that it would be the “best financial year in our history.”
Bastian's new comments show a growing concern among CEOs about the agrio appetite of consumers for spending and the impact of some of Trump's policies. In November, Bastian said that the Trump administration approach for industry regulation would probably be a “fresh air breath.”
Wall Street analysts have reduced their profit estimates and pricing objectives for airlines in recent weeks for fear of decelerating demand.
“In the last six weeks, we have seen a corresponding reduction in broad confidence of the consumer and corporate trust,” Bastian told CNBC. He said that demand, in general, was “quite good” in January and that things “really began to decrease” in mid -February.
Bastian said that the main cabin reserves are weaker than expected above. He said that the demand for trips that was growing around 10% at the beginning of the year has slowed because some companies are rethinking business trips, the Trump administration has reduced the government's workforce and markets are staggering. The White House did not immediately respond to a request for comments.
Bastian said that international and premium trips, which have been growing faster than the sales of the coach's cabin, have been relatively resistant.
Delta planned to expand flight capacity by approximately 3% to 4% in the second half of 2025, Bastian said in an interview. Now the transport of the carrier will be flat year after year.
The Delta Air Lines aircraft are parked at the Seattle-Tacoma International Airport on June 19, 2024 in Seattle, Washington.
Kent nishimura | Getty images
“We hope this is the first of many ads to reduce capacity 2h25 of the airlines this quarter,” wrote TD Cowen Airline Tom Fitzgerald and Helane Becker after Delta launched her perspective.
Some of the future capacity cuts could include Canada, where trips to the United States have decreased, and Delta's president, Delta president Glen Hauenstein. For Mexico, he said there is less demand for travelers to visit friends and family instead of a fall in business trips.
“With broad economic uncertainty about global trade, growth has stagnated to a large extent,” Bastian said in the launch of win Wednesday. “In this slower growth environment, we are protecting the margins and cash flow by focusing on what we can control.”
Delta is the first of the main US operators to inform the profits. United, American, Southwest And others are scheduled to inform at the end of this month.
Tariffs and possible retaliation tariffs could increase the costs of imported components for the United States aerospace industry.
The Bastian de Delta, however, said that the company will differ any Airbus plane that is affected by tariffs. Airbus produces airplanes in Europe, but also uses imported components in its mobile factory, Alabama.
Delta's shares, along with other airlines, recovered after Trump's surprise announcement would reduce some rates rates for 90 days. Their shares increased more than 23%, although almost 27% have still dropped this year.
This is how the company was carried out in the three months finished on March 31, compared to what Wall Street expected, based on LSEG's consensus estimates:
- Profit per action: 46 tight cents compared to 38 expected cents
- Revenue: $ 12.98 billion adjusted compared to $ 12.98 billion expected
In the first quarter, Delta's net revenues increased to $ 240 million, compared to $ 37 million last year, with the income 2% year after year to $ 14.04 billion.
Distinguishing Sales of Delta Refinery, Delta posted a well -adjusted profits of 46 cents, 2% more than last year and the expectations of previous analysts, and adjusted income of $ 12.98 billion, 3% more than last year and in line with the expectations of Wall Street.
