The rapid expansion of American airlines from the COVVI-19 pandemic has arrived at an “self-imposed” end, as the CEO of Delta Air Lines Ed Bastian said on Wednesday.
Macroeconomic uncertainty concerning world trade has brought the multi -year expansion of Delta – which included new international markets and an extended focused city at Austin -Bergstrom (AUS) International Airport (AUS) – a howling stop, Bastian said in a quarterly call.
“In 2025, we are positioned for another year of strong growth,” he said. “However, given a large economic uncertainty around global trade, growth has largely stopped.”
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Delta schedules will be largely intact for the balance of the second quarter which takes place until June, with perhaps certain “cuts on the edges,” said Glen Hauenstein, president of the airline. After June, however, the carrier will reduce all planned growth and rather focus on the profitability of its main activity.
The news comes in a rapid deterioration of economic indicators in the main American scholarship indices spectacular and collapsed from the billions of dollars of wealth since President Trump unveiled his pricing plans on April 2, and the index closely followed by short -term consumption prospects fell in March at the lowest level in 12 years.
In an article on social networks Wednesday after Delta’s call, Trump said that he would arouse all the new reciprocal prices specific to the country, with the exception of those of China for 90 days. Its 10% universal rate on imports remains.
Bastian and other Delta leaders have avoided any mention of Trump specifically during the call, which limits comments to uncertainty concerning prices and world trade. This avoidance was far from the description of Bastian in November of the Trump administration at the time, as a “breath of fresh air” compared to the outgoing administration of Biden.
“The airline sector is in the eye of the storm,” Tom Fitzgerald, airline analyst at the TD Cowen investment bank on Wednesday.
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Delta leaders on the call described the good and the evil of the current situation.
Travel in indoor economy is broken down
“The impact was the most pronounced in the national field and specifically in the main cabin with a sweetness in consumer and companies travel,” said Bastian about the situation.
Delta plans to reduce interior capacity, especially in the second half of the half, said Hauenstein. Most of the cuts are expected after August 15 – most schools in the southeast of the United States, where the Delta is strong, returns from the summer vacation in early August – and through the balance of the year.
The carrier has reduced its capacity growth forecasts for the second half of 2025, from 3% to 4% to one year to one year.
The cuts, at least initially, will focus on peak days and off well, said Hauenstein. This means that Delta could go from five flights on a route on Tuesday, one of the least requested days of the week, only three or four flights while keeping the five flights on the busy Fridays.
Delta leaders refused to develop more where the cuts could occur, except to say that they will be concentrated on the domestic market.
“We are going to eliminate the non -profitable flight wherever it is,” said Hauenstein.
One way in which the delta will slow growth is to speed up aircraft pensions. The airline will remove at least 30 Boeing 757 older, Boeing 767, Airbus A319 and Airbus A320 from its fleet in 2025, said Dan Janki, Delta financial director.
The international journey is resilient … for the moment
Americans are still traveling or eager to travel abroad, at least with Delta, the leaders said. This is even true because foreigners, including Canada and Western Europe, refuse more and more trips to the United States
“Internationally, around 80% of income is a point of American origin, the reservations remaining strong for the summer peak period,” said Hauenstein. The key here is that Delta sells 80% of its seats on international flights to American travelers, which limits exposure to any decrease in foreign trips.
When we asked him why international trips among Americans resist even though domestic trips are slowing down, Hauenstein said: “The cohort that travels at the moment at an average age in the 60s, which means that baby boomers travel. And, you know-being a baby boomer, I can say that without fear cohort, even with the most recent perceived, and they want to go Things.
“We keep an attentive eye on demand-closer than we have ever looked at it before,” he added.
Delta will add a service at Catania airport (CTA) to the Italian island of Sicily as one of the eight new roads to Europe this summer. And next winter, the airline plans to add 10 new routes to Mexico and the Caribbean.
The premium travel request, added Hauenstein, has also proven to be resilient in Delta, even if economic demand has slowed down.
Delta will not pay tariffs on planes
“We will not pay prices on the aircraft deliveries that we will take,” said Bastian in response to a question about the prices on new planes.
Import taxes could be expensive for Delta – and all airlines – given the worldwide nature of the aerospace supply chain. The 43 of its deliveries provided by plane in 2025 come from the manufacturer of European Airbus aircraft, the last fleet plan of the carrier. This includes 12 A330-900 and A350-900 assembled in Toulouse, France; 21 A321neos, generally assembled in Hamburg, Germany or Alabama; and 10 A220-300 assembled in mobile or Montreal.
But even the Airbus planes assembled in Alabama have global supply chains. The fuselage and other critical components on the A321neos gathered in the mobile are dispatched aboard the mobile express dedicated from Europe in the United States
“We will postpone all the deliveries that have a price,” said Bastian when asked for how Delta would avoid the samples.
Delta previously proved to avoid import duties. In the past, he has taken the delivery of new planes, then devoted them to international roads to avoid samples if the plane was to pilot an inner flight.
“It is difficult to know how it will be played since it is somewhat self-imposed,” said Bastian. “I hope that mental health will prevail, and we will spend through this time of time on the world commercial front relatively quickly. But we are prepared in any event to ensure that we protect Delta through it.”
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