With ongoing global economic issues causing uncertainty, Delta Air Lines has informed its investors that growth is projected to stall for the rest of 2025.
As economic downturn fears rise in global markets, Delta’s management has announced plans to reduce capacity in the latter half of the year as part of cost-cutting strategies.
This revised forecast follows the airline’s report of its 2025 first quarter results on April 9, which revealed an operating income of $569 million alongside an operating margin of 4%.
Delta’s Growth Stalled Due to Financial Uncertainty
During the earnings call, CEO Ed Bastian noted that they expected a strong year ahead, but the recent financial pressures necessitated a reassessment of growth projections.
“Entering 2025, we anticipated another solid year,” Bastian said, as quoted in a transcript. “However, widespread uncertainty about global trade has stalled growth. This is especially evident in domestic travel and the Main Cabin, where both consumer and corporate bookings are down.”
Consequently, Delta’s executives are taking steps to manage costs and protect profit margins. Bastian stated that the airline will maintain flat capacity growth for the second half of the year compared to last year and has adjusted its next quarter income expectations to a range between $1.5 billion and $2 billion in pretax income, without providing further projections for 2025.
Despite the challenges in flight growth, the Delta SkyMiles loyalty program and partnership with American Express continue to show positive results. According to airline president Glen Haustein, earnings from American Express have risen by 13% this quarter, totaling $2 billion. Although the Main Cabin and corporate travel segments are experiencing softness, premium bookings, loyalty revenues, and international travel remain robust.
“Demand for the Main Cabin has been soft both domestically and internationally, particularly during off-peak times,” Haustein explained. “However, premium, loyalty, and international segments continue to exhibit strength. Notably, about 80% of international revenue originates from U.S. bookings, with strong trends heading into the peak summer season.”
Haustein further highlighted Delta’s emphasis on enhancing the passenger experience, identifying it as a key factor in attracting new business for the Atlanta-based airline.
“With numerous airlines modifying their services to align more with full-service offerings, we find opportunities to attract their loyal customers—a strategy we intend to leverage moving forward,” Haustein stated. “Our successful initiatives have drawn many new members even in regions where other carriers dominate.”
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