Delta Air Lines will start “actively managing costs and capital expenditures” and slashing planned growth as the Atlanta-based carrier tries to handle the fallout from the Trump administration’s tariffs that have sent markets around the world into a spin.
On Wednesday, Delta became the first major US airline to release its financial results for the first quarter, and while chief executive Ed Bastian attempted to paint as positive a picture as possible, there was no mistaking the stark reality that is now facing the aviation industry.
“While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to prior year and is expected to lead the industry,” Bastian said as the results were made public.
“With broad economic uncertainty around global trade, growth has largely stalled. In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control.”
Bastian said the airline would be reducing the airline’s planned growth for 2025, as well as managing costs and big spending projects.
During the first three months of the year, Delta reported a pre-tax income of $382 million, which is just $2 million more than during the same period in 2024. Operating revenue came in at $13 billion, and operating income was $591 million – both were slightly higher than in 2024.
The results were broadly in line with updated guidance that Delta published last month in which the airline had a year-on-year revenue increase of between 3% and 4%.
Initial guidance, however, had put revenue growth at between 7% and 9%, and Delta had been talking about recording its best-ever financial performance in 2025.
That changed, however, once President Trump took office and mooted the idea of global tariffs. “In the last six weeks, we’ve seen a corresponding reduction in broad consumer confidence and corporate confidence,” Bastian told CNBC on Wednesday.
After starting the year with “quite good” demand in January, Bastian said demand “really started to slow” from mid-February onwards.
During his interview with CNBC, Bastian said the Trump administration’s tariffs policy was the “wrong approach.”
Last month, Delta said it was seeing the most dramatic fall in demand across its domestic route network, while premium and international demand was helping to offset some of the airline’s woes.
On Wednesday, Delta said that “continued resilience in premium, loyalty and international” demand was continuing to “partially” offset plummeting domestic and Main Cabin demand.
“As a result, we are adapting to current conditions while staying true to our long-term strategy,” Delta’s president, Glen Hauenstein, commented.
Perhaps unsurprisingly, Delta has now pulled its full-year guidance as it nervously eyes what President Trump does in what could soon turn into a global trade war.
