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Delta Air Lines Will not expand the flight in the second half of the year with -s -disappointing orders against the background of the president Donald Trump‘S change Trading policyWhich CEO Ed Bastian called the “wrong approach”.
DELTA predicts that profit in the second quarter decreased to 2% or grow by 2% over the past year, while Wall Street was waiting for an increase of 1.9%. The airline is expected to adjusted a rally from $ 1.70 to $ 2.30, compared to analysts’ estimates of $ 2.23 per share.
The carrier also stated that it was too early to update his financial instructions in 2025, a month after he confirmed the goals at the investor conference, although Delta stated that Wednesday was still waiting for profit this year. Last month Delta cut His prospect of profit in the first quarter, citing weaker than expected, corporate and leisure for travel.
This is a shift for Delta, the most profitable American airline that began in 2025 decoration Another year of strong travel demand, and Bastian predicts that it will be a “best financial year in our history”.
His new comments show more and more concern about the Consumer Consumers ‘Consumers’ Consumer appetite and the influence of some Trump’s policies. In November, Bastian said Trump administration approach to adjusting the industry There will probably be “breathing fresh air”.
Analysts Wall -Rate there reduced the income evaluation and price targets For airlines in recent weeks about the fear slowing.
“Over the last six weeks, we have observed a corresponding decline in consumers and corporation’s confidence,” Bastian CNBC said. He said the demand in general was “rather good” in January, and in mid -February “really” began to slow down. “
Bastian said the basic orders in the cabin were weaker than previously expected. He said the demand for travel, which is growing by about 10% at the beginning of the year, has slowed down, as some companies rethink business trips, Trump administration reduces government labor and markets. The White House did not immediately respond to a comment request.
He said that international and premium were relatively resilient.
In the second half of 2025, Delta planned to expand the flight by about 3% to 4%, Bastian said in an interview. Now the power of the carrier will be flat for the year.
“We expect this to be the first of the 2H25 power loss ads in this quarter,” TD Cowen Airline Tom Fitzgerald and Heln Beker wrote after Delta has released its forecast.
Delta Air Lines aircraft see parked at the Seattle International Airport on June 19, 2024 in Seattle, Washington.
Kent Nishimura | Gets the image
“With extensive economic uncertainty around global trade, growth was heavily delayed,” Bastian said in the production of income on Wednesday. “In this slow growth setting, we protect the stock and cash flow, focusing on what we can control.”
DELTA is the first of the major US carriers reporting income. United. American. Southwest And others are planned to be reported at the end of this month.
Here’s how the company performed in three months ending March 31. Compared to what Wall -Rate expected, based on consensus estimates with LSEG:
- Profit per share: Expected 46 cents adjusted against 38 cents
- Income: 12.98 billion dollars, adjusted compared to $ 12.98, expected
In the first quarter, Delta’s net income increased to $ 240 million, which is $ 37 million last year, with a $ 2% profit to $ 14.04 billion.
Pulling out the sales of Delta oil refineries, Delta outlined a corrected stock of a share of 46 cents, which is 2% compared to last year and above analysts’ expectations and adjusted $ 12.98 billion, which is 3% compared to last year and in accordance with the expectations.
