Main to remember
- The CEO of Delta Air Lines, Ed Bastian, said on Wednesday that the Americans behaved as if they were in recession.
- Delta, the first major carrier to publish profits since the announcement of the general prices, suspended his forecasts in 2025 due to “uncertainty”.
- Interior trips have been blocked since the end of February, said Bastian, adding that companies and consumers have adopted a “defensive posture”.
The Americans behave as if they were in recession, the CEO of Delta Air Lines (DAL) ED Bastian said on Wednesday while the carrier had withdrawn its annual forecasts.
The leisure trips of companies and companies have been in a standstill since the end of February, according to Delta, the first major airline to publish profits since the announcement of generalized rates. Demand has decreased due to bad weather, “high -level aircraft incidents” and global economic uncertainties, Bastian said CNBC.
“We act as if we are going (in) a recession. I think everyone enters a defensive posture,” said Bastian. “… If it continues and we do not get the resolution soon, we will probably find ourselves in a recession.”
Delta reported better than expected budgetary results in the first quarter, but said that he would not affirm annual projections at this time “given the current uncertainty”. The turnover of the current quarter is observed between 2% less than 2% above the levels of T2 2024, said the company.
Delta had planned to expand its capacity by approximately 4% in the second half of 2025, but no longer considers growth, said Bastian. Business trips increased by around 10% before stalling, he added. Consumers sensitive to prices buy fewer interior tickets, said the CEO, adding that international trips, summer reservations and premium ticket sales remain solid.
“ Unexplored and unprecedented uncertainty ”
“We are in unexplored and unprecedented uncertainty,” said Bastian, adding that it was a “self-inflicted situation”.
UBS analysts have lowered a number of stocks of airlines a few days after the Trump administration unveiled “reciprocal” prices on goods from most American business partners.
Last month, several airlines lowered their forecasts while the Americans became worried about the economy and planned less trips, the leaders said.
“We see what the others see,” said Jeanna Geraghty’s CEO, at a conference, last month last month at a transcription provided by AlphaSense. “The peaks remain healthy. The hollows are obviously under pressure.”
Consumers spent “about 6% below 2024 levels at the start of this year” on the plane ticket, according to Bank of America’s analysis on debit and credit cards expected on March 28.
Large national airlines have lost money in making flying passengers since their costs have skyrocketed during the pandemic. They were profitable thanks to the co-marked credit card offers.
