Delta CEO Warns Trump Tariffs Are Hurting Bookings as Airline Pulls 2025 Guidance

Atlanta, GA — Delta Air Lines CEO Ed Bastian on Wednesday sounded the alarm on weakening travel demand, attributing the downturn in part to the economic impact of President Donald Trump’s aggressive tariff policies. The airline has now withdrawn its full-year 2025 guidance and scaled back expansion plans for the remainder of the year.

“This is the wrong approach,” Bastian said, referring to Trump’s tariffs during an interview with CNBC. “With broad economic uncertainty around global trade, growth has largely stalled.”

Delta, the most profitable U.S. airline in recent years, had previously forecast strong demand for 2025. In January, Bastian had predicted it would be the company’s “best financial year in our history.” That optimism has quickly faded as booking momentum slowed sharply in mid-February, driven by declining consumer confidence, reduced corporate travel, and policy shifts under the current administration.

Bookings Slump, Guidance Pulled

The airline reported that main cabin bookings have weakened significantly, and companies are now reassessing travel budgets. The administration’s recent move to cut the federal workforce and heightened market volatility have added to the cautious mood.

As a result, Delta will no longer increase flying capacity in the second half of 2025, reversing earlier plans for a 3%–4% expansion. Instead, year-over-year capacity will remain flat.

Delta now expects second-quarter revenue to range from a 2% decline to 2% growth, a wide spread that reflects ongoing uncertainty. Analysts had expected growth of 1.9%, based on LSEG data. Adjusted earnings per share are projected between $1.70 and $2.30, compared to a consensus estimate of $2.23.

“In the last six weeks, we’ve seen a corresponding reduction in broad consumer confidence and corporate confidence,” Bastian noted.

First Quarter Results Beat Expectations

Despite the cautious outlook, Delta posted better-than-expected first-quarter results. The airline reported:

• Adjusted earnings per share of 46 cents, beating analysts’ estimates of 38 cents.

• Adjusted revenue of $12.98 billion, in line with Wall Street expectations.

• Net income of $240 million, up from $37 million in the same period last year.

• Total revenue grew 2% year-over-year to $14.04 billion.

Delta said premium and international travel remained relatively resilient, while domestic and economy-class segments were more affected by recent shifts in market sentiment.

Tariffs Cast Shadow Over Aerospace and Fleet Strategy

Bastian also flagged concerns about the downstream impact of tariffs on the broader U.S. aerospace industry. Tariffs on imported aircraft components could lead to increased costs and delivery disruptions, particularly for manufacturers like Airbus that operate in both Europe and the United States.

Delta indicated it would defer Airbus deliveries if necessary. While Airbus assembles jets in Mobile, Alabama, many components are imported and subject to the new trade duties.

Industry-Wide Repercussions Expected

Wall Street analysts anticipate that Delta’s announcement may mark the beginning of a broader pullback in airline growth plans. In a client note, TD Cowen analysts Tom Fitzgerald and Helane Becker wrote:

“We expect this to be the first of many 2H25 capacity reduction announcements from the airlines this quarter.”

The airline also hinted at potential cuts to routes in markets like Canada and Mexico, where demand has weakened. In particular, U.S.-bound travel from Canada has slowed, and Delta’s president noted a reduction in travel for family visits to Mexico.

Looking Ahead

Delta remains profitable and is focusing on margin protection and cash flow in an increasingly uncertain global economy. The airline is the first among major U.S. carriers to report earnings for the quarter. Competitors United, American, and Southwest are scheduled to report later this month.

Whether Trump’s tariff strategy will deliver long-term benefits or further disrupt industry recovery remains to be seen, but for now, airlines are bracing for a challenging year ahead.