Delta to trim capacity in light of weakening travel demand

Core Viewpoint - Delta Air Lines has withdrawn its full-year profit forecast and postponed planned capacity increases due to a weakening demand outlook amid recession concerns and escalating trade wars [1][2][3]. Financial Performance - Delta's first-quarter profits reached $240 million, an 18$14 billion [3]. - The company has projected second-quarter revenues to fluctuate between negative 2% and positive 2%, with earnings per share estimated between $1.70 and$2.30 [4]. Strategic Adjustments - Delta is adjusting its strategy by reducing the number of flights in response to a challenging consumer environment influenced by changing tariff dynamics [2][3]. - Plans to increase travel capacity in the second half of 2025 have been shelved, with expectations now set to remain flat compared to the previous year [3]. Market Reaction - Following the announcement, Delta's shares experienced a 7.5% increase in late-morning trading [4].