✈️ Delta Air Lines is slowing down!
Delta Air Lines $DALCEO , Ed Bastian, isn't worried about it and leaned into Trump: tariffs and uncertainty in global trade are hurting business. Delta, still considered one of the most profitable players in the airline industry, is pulling back its 2025 outlook and reassessing capacity expansion.

Weakening demand, weaker bookings, declining interest in corporate and leisure travel, primarily due to an uncertain macro environment and growing traveler caution. The firm also notes spending restraint from the US government, which has a direct impact on business travel.

📉 The outlook for Q2 is very cautious:
Revenue: possible decline of up to 2%

Earnings per share: $1.70-2.30 (vs. estimate of $2.23)

Capacity growth: from projected +4% to 0%

📊 Yet the quarterly results didn't look bad at all:
Net income +550% year-over-year ($240 million vs. $37 million)

Adjusted earnings per share: $0.46 (vs. estimate of $0.38)

Revenue: $12.98 billion, in line with expectations

🔍 A few key points:
Trade policy affects sectors not directly tariff-laden. Even if airlines don't sell import goods, tariffs affect travel sentiment, corporate budgets and consumer sentiment.

Delta delays fleet expansion Airbusthat would be subject to higher tariffs. The decision affects dozens of aircraft, mostly manufactured in Europebut assembled in USA (Mobile, Alabama).

The whole sector is reassessing growth. Analysts expect that other carriers (United, American, Southwest) will announce similar capacity revisions, particularly on routes to Canada, Mexico and business destinations. However, it remains to be seen how companies will react to today's 90-day tariff suspension.

Delta not facing a crisis. The company is holding profitability, has strong cash flow and continues to dominate the premium segments. It's just changing its tone from expansion to conservative margin defense.

What's your take on the airline?