Delta Abandons 2025 Growth Forecast Amid Trade Tensions, and More
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Delta Drops Outlook for 2025 as Trade War Stalls Growth
Delta Air Lines has withdrawn its 2025 financial guidance amid escalating trade tensions, citing significant uncertainty in global markets as President Trump's tariff policies dampen both corporate and consumer travel demand.
Despite posting a first-quarter profit of $240 million, the airline now expects 2025 revenue to range between a 2% decline and a 2% increase, a stark reversal from January's projection of 7% growth and record financial performance.
Key Points
- Growth has "largely stalled" since mid-February after initially strong January results
- Delta is reducing planned capacity growth to flat year-over-year in the second half of 2025
- Q2 revenue forecast ranges from -2% to +2%, below Wall Street's expectation of 1.9% growth
- Premium travel and international routes remain relatively resilient, while domestic main cabin bookings have softened
- American Express partnership delivered record Q1 remuneration of $2 billion, up 13% year-over-year
- Tariff impacts are dampening both corporate and leisure travel spending
What It Means
This pivot signals broader economic concerns as the new trade policies create significant uncertainty for businesses and consumers alike.
Delta's pullback represents an early warning of potential recession risks as tariffs disrupt global trade flows.
While Delta still anticipates profitability in 2025, the abrupt change in outlook suggests mounting headwinds could extend beyond airlines to other consumer-dependent sectors.
