Minneapolis, Minnesota – As budget-conscious travelers scale back on bookings with Delta Air Lines, the top carrier at Minneapolis-St. Paul International Airport, it reflects a growing unease surrounding travel and the U.S. economy. Despite this trend, Delta’s stock surged by approximately 7% after the release of a first-quarter earnings report that exceeded investor expectations. This boost in stock prices continued, reaching a 23% increase following news of a 90-day halt on new tariffs from the White House.
During the earnings announcement, Delta opted to forego providing full-year financial guidance for 2025, attributing it to lower-than-projected sales in the initial months of the year. Company officials highlighted the unpredictability in the market as domestic travel demands weakened starting in late February. CEO Ed Bastian emphasized the impact of “broad economic uncertainty around global trade” on the company’s growth in a call with analysts.
Although executives are closely monitoring any potential declines in Delta’s premium services and international travel, they noted that these revenue streams remain steady. Looking ahead, Bastian acknowledged the challenges posed by current conditions but remained optimistic, pointing to the airline’s history of overcoming industry obstacles. He emphasized the need for clarity regarding tariff disputes and expressed confidence in Delta’s ability to weather the storm.
For the first quarter, the Atlanta-based airline reported $240 million in income on $14 billion in revenue, surpassing Wall Street estimates. Adjusted earnings per share came in at 46 cents, exceeding the consensus forecast of 39 cents per share. Despite the uncertainties in the market, Bastian remained positive about the future, anticipating opportunities to emerge amidst the current obstacles.