Delta Air Lines CEO Warns Trump Trade War is Wrong Approach

Delta Air Lines reported its first-quarter financial results this week, choosing to omit a full-year forecast due to the economic uncertainty surrounding President Trump's escalating trade war as CEO Ed Bastian notes that the increasing tariffs are "the wrong approach." 

The first quarter of the year saw a 3.3 percent increase in revenue, with an operating revenue of $13 billion and an earnings per share of $0.46. International and premium travel continue boosting revenue, with revenue from travel to the Pacific region increasing 16 percent, with a five percent increase in transatlantic revenue. Premium travel revenue growth increased by seven percent.

Still, the airline, which is considered one of the best financially performing in the nation, lowered its expectations for the year and omitted a full-year financial prediction, noting that the economic uncertainty made it challenging to plan ahead or expect growth. 

Delta won't expand its capacity, noting that growth has "stalled" this year.

It expects the second quarter total revenue to drop to a two percent drop to a two percent increase from the second quarter of 2024, with earnings per share between $1.70 and $2.30. 

"With broad economic uncertainty around global trade, growth has largely stalled," explained CEO Ed Bastian. "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."

In November, after Trump had been elected president, Bastian called the incoming administration "a breath of fresh air" for the industry, hoping 2025 would be one of the best financial years for the airline. 

Yet most domestic airlines have since downgraded their profit forecasts in the few short months following Trump's inauguration. 

Airline analytics company OAG sounded the alarm using booking data on transborder bookings from Canada to the United States following the Canada travel boycott. According to the data, bookings from April to September this year are down 70 percent each month from 2024, a drop that OAG calls a "collapse." Canada is the nation's largest international source market.  

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore