Delta Air Lines has lowered its revenue expectations due to concerns over a potential economic recession sparked by global trade uncertainty. CEO Ed Bastian warned that growth has stalled, and the airline is adjusting its plans as businesses and leisure travelers cut back on travel.
Bastian expressed concern that the US economy may enter a recession, citing a “defensive posture” among companies. Delta, like other retailers not directly impacted by tariffs, is being affected by the uncertainty.
The airline attributed the change in guidance to broad economic uncertainty around global trade. It’s dropping plans to increase its seats and expects a flat year-over-year growth in available seat miles.
Business travel, which had been growing at 10% annually, is now flat compared to last year. Companies are pulling back on their own travel plans as they prepare for potential economic downturns.
Delta reported revenue grew 3.3% in the previous quarter, but expects a 2% gain or decline in second-quarter revenue, trimmed expectations for quarterly profit margin.
Source: https://edition.cnn.com/2025/04/09/business/delta-earnings-economic-warning/index.html