Delta CEO says Trump’s trade war is hurting bookings as airline axes 2025 flight growth plans

Delta Air Lines won’t expand flying in the second half of the year because of disappointing bookings amid President Donald Trump’s shifting trade policies, which CEO Ed Bastian called “the wrong approach.”

Delta on Wednesday forecast its second-quarter revenue to decline up to 2% or grow as much as 2% over last year, while Wall Street had been expecting growth of 1.9%. The airline expects adjusted earnings per share of $1.70 to $2.30, compared with analysts’ estimates of $2.23 a share.

The carrier also said it can’t reaffirm its 2025 financial guidance, a month after it confirmed the targets at an investor conference. Last month, Delta cut its first-quarter earnings outlook, citing weaker-than-expected corporate and leisure travel demand.

It is a shift for Delta, the most profitable U.S. airline, which started 2025 upbeat about another year of strong travel demand, and a sign of growing concern among corporate CEOs about consumers’ souring appetites for spending.

“In the last six weeks, we’ve seen a corresponding reduction in broad consumer confidence and corporate confidence,” Bastian told CNBC. He said that demand, overall, was “quite good” in January and that things “really started to slow” in mid-February.

Wall Street analysts have slashed their earnings estimates and price targets for airlines in recent weeks on fears of slowing demand.

Bastian said main cabin bookings are weaker than previously expected, though corporate travel demand has also been impacted as companies rethink some business trips, the Trump administration cuts the government workforce and markets reel.

He said international and premium travel have been relatively resilient.

Delta planned to expand flying capacity by about 3% to 4% in the second half of 2025, Bastian said in an interview. Now the carrier’s capacity will be flat year-over year.

“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.”

Delta is the first of the major U.S. carriers to report earnings. United, American, Southwest and others are scheduled to report later this month.

Here’s how the company performed in the three months ended March 31, compared with what Wall Street was expecting, based on consensus estimates from LSEG:

• Earnings per share: 46 cents adjusted vs. 38 cents expected
• Revenue: $12.98 billion adjusted. That may not compare with $13.02 billion expected

In the first quarter, Delta’s net income rose to $240 million, up from $37 million last year, with revenue up 2% year over year to $14.04 billion.

Stripping out Delta’s refinery sales, Delta posted adjusted earnings per share of 46 cents, up 2% from last year and above analysts’ expectations, and adjusted revenue of $12.98 billion, up 3% from last year and roughly in line with Wall Street expectations.