Delta warns of ‘economic uncertainty’ and ‘stalled growth’ in new recession alarm bell

Delta Air Lines warned that revenue could fall in the current quarter and that “growth has largely stalled,” forcing it to drop plans to offer more seats to passengers, in another warning sign about a possible recession hitting even businesses not directly impacted by recent tariffs. The airline attributed the weakness in its guidance to “broad economic uncertainty around global trade.” It said due to the change in economic condition, it is no longer standing behind previous guidance that it expected record profits in 2025.

The company reported that revenue in the just-completed quarter grew 3.3%, in line with recently reduced guidance for the period. It had started the quarter expecting revenue to rise between 7% and 9%.



Now it says its second quarter revenue, which includes the start of the summer travel season, will between a gain of 2% and a decline of 2%. It also trimmed its quarterly profit margin, even as it expects to benefit from lower fuel costs. This is a developing story.

It will be updated..