
Delta Air Lines indicates it will reduce capacity due to signs of an economic slowdown. The airline’s summer schedule is perceived as “overbuilt,” and reductions will be implemented after flight schedules are announced later in March.
The information was presented during both carriers’ talks at the J.P. Morgan 2025 Industrials Conference on Tuesday, March 11, 2025.
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Delta’s loyalty program, SkyMiles, continues to generate strong profits. CEO Ed Bastian stated that co-brand spending has surged by double digits in the first two months of 2025, despite underlying economic concerns.
However, Delta is prepared to make schedule reductions due to anticipated hesitance among customers about travel amid economic uncertainties, especially regarding tariffs and international trade.
Bastian notes:
“We had a bias to fly whatever we could as we headed into the summer. And on the margin we’ve tempered that down to make it fly what needs to be flown.”
Alongside the strive for profitability, Delta’s leadership remains hopeful for growth, particularly among younger travelers, due to modern amenities and a strong customer experience.
“Between the free Wi-Fi and new airport lounges, we are positioning ourselves as an aspirational brand that customers will want to be associated with.”
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