Delta CEO says Trump tariffs are hurting bookings as airline pulls 2025 forecast
Delta Air Lines is set to not expand its flights in the second half of 2025 due to disappointing bookings and President Donald Trump’s shifting trade policies. CEO Ed Bastian has called this approach “the wrong approach.”
Delta predicts a decline in second-quarter revenue of up to 2% or growth of up to 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. Delta also said it is too early to update its 2025 financial guidance, a month after it confirmed the targets at an investor conference.
The carrier has cut its first-quarter earnings outlook, citing weaker-than-expected corporate and leisure travel demand. This shift is a shift for Delta, the most profitable U.S. airline, which started 2025 optimistic about another year of strong travel demand. Bastian’s comments show growing concern among CEOs about consumers’ souring appetites for spending and the impact of some of Trump’s policies.
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, and travel demand that was growing about 10% at the start of the year has since slowed due to some companies rethinking business trips, the Trump administration cutting the government workforce, and markets reeling.
International and premium travel have been relatively resilient. Delta plans to expand flying capacity by about 3% to 4% in the second half of 2025, but now the carrier’s capacity will be flat year over year.