Delta Air Lines withdraws 2025 forecast amid tariff concerns
(MENAFN) Delta Air Lines announced on Wednesday that it is withdrawing its full-year 2025 financial guidance, attributing the decision to the increasing impact of U.S. President Donald Trump's tariffs on both consumer and business spending.
In a statement, Delta Air Lines CEO Ed Bastian explained, "With broad economic uncertainty around global trade, growth has largely stalled."
The airline indicated that the growing uncertainty has begun to negatively affect bookings across the travel industry, cautioning that the evolving economic landscape is making it difficult to predict future performance.
Bastian further stated, "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures."
Despite the concerns about future economic conditions, Delta reported positive results for the first quarter. The company's net income reached 240 million U.S. dollars, or 37 cents per share, marking a significant increase from the 37 million dollars, or 6 cents per share, reported in the same period last year. On an adjusted basis, excluding one-time items, earnings per share stood at 46 cents, exceeding Wall Street's forecast of 40 cents per share, according to Zacks Investment Research.
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