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Delta to trim capacity in light of weakening travel demand / Photo: © GETTY IMAGES NORTH AMERICA/AFP/File
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Delta to trim capacity in light of weakening travel demand
Delta Air Lines withdrew its full-year profit forecast Wednesday and shelved some planned capacity hikes, pointing to a weakening demand outlook amid recession worries and worsening trade wars.
The company is among the first to report its quarterly results since President Donald Trump's "Liberation Day" announcement of major tariffs on US trading partners that has roiled global markets.
The big US carrier's first-quarter profits edged above those in the year-ago period, but executives said they were adjusting strategy to fly fewer planes due to a more meager consumer environment in light of shifting tariff dynamics.
"With broad economic uncertainty around global trade, growth has largely stalled," said Delta Chief Executive Ed Bastian. "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control."
Delta will shelve plans to increase travel capacity in the second half of 2025, which is now projected as flat compared with last year, Bastian said.
Profits for the first quarter were $240 million, 18 percent above the year-ago level on a two percent rise in revenues to $14 billion.
In March, Delta had trimmed its first quarter forecast on the weakening outlook.
On Wednesday, the company projected second-quarter revenues of between negative two percent and positive two percent, while profits of between $1.70 and $2.30 per share.
Analysts have penciled in $2.23 per share for the second quarter.
Delta isn't confirming 2025 projections due to the current uncertainty, saying it "will provide an update later in the year as visibility improves."
Shares of Delta jumped 7.5 percent in late-morning trading.
N.Krupa--GL
