Delta Air Lines has pulled back its 2025 financial forecast and announced it will no longer expand flight capacity in the second half of the year, citing weaker bookings and economic headwinds fueled by President Donald Trump’s trade policies. CEO Ed Bastian criticized the tariffs as “the wrong approach” and noted that travel demand, which was growing earlier in the year, began to slow significantly in mid-February as consumer and corporate confidence declined.

Despite a strong start and expectations for a record year, Delta has seen a downturn in main cabin bookings, with many companies rethinking business travel and broader markets facing instability. While international and premium travel remain resilient, the airline now expects flat year-over-year capacity and is delaying new Airbus aircraft purchases impacted by tariffs. Bastian emphasized the airline’s focus on preserving margins and cash flow amid global trade uncertainty. Delta remains profitable for now, but its revised outlook signals broader caution across the airline industry.