Delta Air Lines has raised concerns about a potential recession, cautioning that its revenue may decline in the current quarter and admitting that “growth has largely stalled.” CEO Ed Bastian expressed growing concern over the state of the economy, citing global trade tensions and broader economic uncertainty as key reasons for the company’s more cautious outlook.
Due to the shifting economic environment, Delta is backing away from its earlier forecast of record profits in 2025. It is also halting plans to expand seating capacity for later this year, pointing to a noticeable slowdown in both business and leisure travel demand.
When asked during a CNBC interview whether he still believes the U.S. can avoid a recession, Bastian responded, “I don’t know. I think we’re acting as if we’re going into a recession.” He added that companies are taking a defensive approach, and if that trend continues without resolution, “we’ll probably end up in a recession.”
While Delta is not directly affected by tariffs, the ongoing uncertainty they have created in the U.S. economy is impacting the airline’s business.
In its most recent quarter, Delta reported a revenue increase of 3.3%—matching its downgraded expectations, but far below its original forecast of a 7% to 9% rise. For the upcoming quarter, which includes the start of the busy summer travel season, the airline now anticipates revenue growth between 2% and a possible 2% decline. It has also adjusted its profit margin forecast, despite some relief from falling fuel prices.
