Delta Airlines announced the withdrawal of its profit guidance for 2025, citing a significant decline in bookings due to escalating trade wars and overall economic uncertainty. CEO Ed Bastian described the current growth landscape as stagnant, emphasizing the company’s focus on managing costs and adjusting capacity growth. In the first quarter, Delta reported a profit of $240 million, or 37 cents per share, which exceeded analyst expectations. However, stock prices fell as investors grew wary of rising tariffs and decreased consumer spending.
Quarterly operating revenue increased slightly from $13.75 billion to $14.04 billion, surpassing Wall Street’s estimates. Although Delta had initially forecasted a robust revenue growth of 3-4% for the first quarter, it later revised this down due to weakening domestic demand. Bastian expressed a cautious outlook on profitability for the second quarter, estimating earnings between $1.5 billion and $2 billion but refrained from updating the annual forecast amidst significant economic ambiguity.
Furthermore, Delta’s previously hopeful outlook for 2025, which projected over $7.35 per share in profits, now seems uncertain as businesses and consumers continue to restrain travel spending due to ongoing trade policy concerns. Delta remains committed to its long-term strategy while adapting to the current challenging circumstances.
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