Delta cuts planned capacity growth amid economic uncertainty

Delta Air Lines confirmed it has axed plans for capacity growth this year “given the lack of economic clarity” and “a reduction in corporate confidence”.

Announcing first-quarter results for the three months to March, Delta Air Lines chief executive Ed Bastian said: “The first quarter unfolded differently than initially expected.”

However, he reported: “We delivered solid profitability that was flat to the prior year and is expected to lead the industry.”

Bastian noted growth “has largely stalled, with broad economic uncertainty around global trade”, and said: “In this slower-growth environment, we’re protecting margins and cash flow by focusing on what we can control. 

“This includes reducing planned capacity growth in the second half of the year to flat over last year while managing costs and capital expenditures.” 

The airline said the reduction in capacity growth would “align supply with demand”.

Delta reported 7% growth year on year in its premium revenue but said growth in corporate travel “moderated through the quarter”, noting “a reduction in corporate confidence stalled growth in February and March”. 

The carrier saw record operating revenue of $14 billion in the quarter, up 3% year on year. Its operating income of $569 million was down 7% on the previous year, but a pre-tax profit of $320 million was up from $122 million a year earlier.

While domestic revenue rose just 1% year on year, transatlantic revenue was up 5%, as was turnover on Latin America traffic.

Bastian forecast profits of $1.5 billion to $2 billion for the April-to-June quarter, but said it was “premature” to provide an updated full-year outlook “given the lack of economic clarity”. 

However, he insisted Delta remains “well positioned to deliver solid profitability” for the year.

Delta president Glen Hauenstein noted: “2025 is playing out differently than we expected at the start of the year.”

He reported “continued resilience in premium, loyalty and international [sectors] partially offsetting domestic and main cabin [economy]softness.”

Image: Shutterstock / Miguel Lagoa