Delta CEO says trade war is hurting bookings as airline axes 2025 flight growth plans

Core Viewpoint - Delta Air Lines is facing challenges in the second half of the year due to disappointing bookings and a shift in consumer confidence, leading to a forecast of flat capacity growth and a potential decline in revenue [1][2][5]. Financial Performance - In the first quarter, Delta's net income increased to $240 million, up from$37 million last year, with revenue rising 2% year over year to $14.04 billion [6]. - Adjusted earnings per share for the first quarter were 46 cents, exceeding analysts' expectations of 38 cents, while adjusted revenue was$12.98 billion, slightly below the expected $13.02 billion [7][8]. Market Outlook - Delta has revised its second-quarter revenue forecast to a decline of up to 2% or growth of up to 2% compared to last year, while Wall Street had anticipated a growth of 1.9% [1]. - The company cannot reaffirm its 2025 financial guidance due to weaker-than-expected corporate and leisure travel demand [2]. Demand Trends - CEO Ed Bastian noted a reduction in consumer and corporate confidence over the past six weeks, with demand slowing significantly since mid-February [3]. - Main cabin bookings are weaker than expected, and corporate travel demand is also affected as companies reconsider business trips [4]. Capacity Plans - Delta initially planned to expand flying capacity by 3% to 4% in the second half of 2025, but now expects capacity to remain flat year over year [4].