Delta Air Lines CEO Ed Bastian has sharply criticized President Donald Trump’s latest round of tariffs, blaming them for a steep drop in travel demand and heightened economic uncertainty that has forced the airline to scrap its 2025 financial forecast and pause planned expansion.
In a pointed statement during the company’s earnings call on Tuesday, Bastian said the administration’s “protectionist stance” and unpredictable trade policy have weakened consumer and corporate confidence, triggering a broader slowdown in bookings — particularly in the domestic and business travel segments.
“The uncertainty created by these tariffs is stalling growth,” Bastian said. “We’re seeing businesses delay travel decisions, and consumers pulling back — not because they can’t afford it, but because they’re unsure about what’s next.”
The airline said it was withdrawing its 2025 profit and growth projections due to the “volatility and lack of clarity” surrounding global trade and U.S. economic policy under Trump’s second-term leadership. Delta also announced it would suspend capacity increases it had planned for later this year, citing a sharp shift in demand patterns.
Confidence Crisis
Bastian cautioned that the private sector is “on edge” and warned that mounting fear of a recession — stoked by policy ambiguity — could become a self-fulfilling prophecy.
“We risk talking ourselves into a recession,” he added. “Markets and industries rely on certainty and stability, and right now we’re lacking both.”
The airline industry, highly sensitive to macroeconomic conditions and geopolitical tension, has been among the first to feel the impact of the renewed U.S. trade war, reignited by a wave of tariffs on imported goods from China, the European Union, and other key markets.
Delta’s stock has dropped over 40% since the beginning of the year, with Tuesday’s remarks triggering another 8% slide in early trading.
A Broader Signal
Bastian’s remarks underscore growing concern across corporate America about the implications of Trump’s second-term policies on the global economy.
Executives across industries — from manufacturing to tech — have warned that escalating trade tensions could derail recovery efforts and stunt long-term growth.
In response, Delta said it will focus on managing controllables: cutting costs, scaling back capital expenditures, and prioritizing operational efficiency over expansion.
“We are adapting to a new reality — one where the economic headwinds are political, not cyclical,” Bastian said.
While the Trump administration maintains that tariffs are necessary to protect American jobs and industries, critics argue that they are instead fueling inflation and discouraging investment.
As Bastian put it, “Uncertainty is the real tax here — and we’re all paying it.”
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