The CEO of Delta Air Lines, Ed Bastian, said that President Trump was adopting “the wrong approach” with the tariffs, since the carrier withdrew his financial prognosis by 2025 and reduced the expansion plans by the end of this year.
The Atlanta -based airline, the second largest national airline, said Wednesday that it will stop the flight expansions previously planned for the second half of 2025, attributing the decision to weaken reserves and economic uncertainties.
“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.”
The airline reviewed its financial expectations of the second quarter, now projecting a range between a 2% decrease and a 2% growth in income compared to last year.
These figures fell short or the previous Wall Street estimate of an increase of 1.9%.
Delta also expects earnings adjusted by share between $ 1.70 and $ 2.30, versus analyst prognosis or $ 2.23.
Last month, Delta reiterated his optimistic goals throughout the year at an investor conference.
However, the company’s officials indicated on Wednesday that it was premature to update the 2025 financial guide due to market unpredictability, although they reaffirmed the confidence that Delta would remain profitable.
At the beginning of the year, Bastian declared confident that it would be the “best financial year in our history.”
However, increasing market volatility and economic uncertainty driven by policies have considerably changed the panorama.
Delta’s precaution reflects the broader conerns of the industry, since corporate leaders and analysts are increasingly concerned about consumers who withdraw the expense amid fluctuating levels.
“In the last six weeks, we have seen a corresponding reduction in the broad confidence of the consumer and corporate trust,” Bastian told CNBC, adding that the demand was “quite good” in January before experiencing a decrease in noticax from mid -February.
Bastian specifically indicated a decrease in the main cabin reserves, which have had a lower performance in relation to the previous expectations.
Although the initial demand at the beginning of the year showed a promising growth of around 10%, the impulse has slowed down dramatically.
He attributed this slowdown in part to the reconsidation travel plans of the companies, reductions of the government workforce by the Trump administration and general instability of the market.
The White House did not immediately provide an answer when asked.
Despite the general softening demand, Bastian stressed that international travel and premium cabins have remained relatively stable.
Delta Initial planned an expansion from 3% to 4% in the flight capacity by the end of 2025, but now does not expect growth compared to last year.
Delta’s recent results offered some positive news. For the quarter that ended on March 31, the profits adjusted by action were 46 cents, exceeding the expectation of 38 cents wall street.
Adjusted income coincided with the predictions of $ 12.98 billion, marking a 3% increase compared to the previous year. The net income reached $ 240 million, significantly higher than the $ 37 million last year.
Delta’s results prepared the stage as other important carriers, including United, American and Southwest Airlines, prepare to announce their proprietary profits at the end of this month.
