Delta Air Lines (DAL, Financial) CEO Ed Bastian expressed optimism regarding demand recovery in the latter half of the year, despite recent restraint among price-sensitive U.S. passengers due to economic challenges. Bastian noted that demand should see a slight rebound, particularly after experiencing weaker bookings in the U.S. market and among main cabin leisure travelers.
Bastian acknowledged the current volatility influenced by Washington's policies and trade negotiations but believes this situation will not persist long-term. He highlighted strong performance on North Atlantic routes, with first and business class maintaining robust yields, even as main cabin demand shows some weakness.
Earlier this year, Delta significantly lowered its first-quarter profit guidance, along with expectations for revenue growth and operating margins, contrasting with initial forecasts of stable demand. The company is set to release its financial report in early July.
Amid tariff risks, the aviation sector faces uncertainties, as airlines and manufacturers have historically been shielded from such impacts. Delta has indicated it does not wish to bear the tariff costs on aircraft purchases from Airbus SE, potentially leading to tensions with the European manufacturer, which also refuses to pay tariffs.
