Delta Air Lines' Financial Forecast Soars into Uncertainty Amid Global Trade Turbulence

Delta Air Lines has suspended its 2025 financial forecast and anticipated lower-than-expected current-quarter profits amidst stalling travel demand, driven by economic uncertainties and U.S. tariffs. The company noted a softening in both leisure and corporate bookings, impacting domestic travel, while premium and international travel remain steady.

Delta Air Lines has withdrawn its financial projections for 2025 as travel demand stalls due to the impact of U.S. tariffs, fueling economic uncertainty. On Wednesday, the airline also announced that its current-quarter profit will likely fall short of expectations, citing a slowdown in consumer and business confidence.

The ripple effects of tariffs imposed by President Donald Trump on global imports have been profound, with many travelers considering airline travel more of a luxury than a necessity. This sentiment has led to skittish investors, resulting in significant selloffs across airline stocks. Delta CEO Ed Bastian highlighted the economic ambiguity, stating the current landscape makes it premature to update the year's forecast.

Despite reporting an adjusted profit exceeding analysts' expectations for the first quarter, Delta faces a challenging road ahead with predictions of second-quarter revenue fluctuating slightly compared to last year. The airline, however, remains somewhat insulated due to its diverse revenue streams and robust balance sheet.

(With inputs from agencies.)