Delta Air Lines announced a lower-than-expected profit forecast for the current quarter, influenced by economic uncertainty from rising US tariffs.
CEO Ed Bastian stated that travel demand has stalled and the company refrained from giving a full-year financial outlook due to fluid macroeconomic conditions.
Bookings from leisure and corporate customers have softened, impacting domestic travel while premium and international travel demand remains robust.
The airline’s shares have dropped significantly this year, reflecting a broader decline in the airline industry with major competitors also reporting substantial losses.
Delta plans to reduce its capacity growth to flat for the latter half of the year, down from an initial expectation of 3%-4%, as it manages costs in a challenging environment.
