Insights Flash: Delta Pulls Guidance Amid Tariff Turbulence
In Delta Air Lines’ recent Q1 ’25 earnings release, the company pulled full-year guidance. This decision came in light of uncertainty driven by tariffs and their potential economic impact. Delta further elaborated that growth has already stalled due to broader economic concerns. Forward visibility is now severely limited, given the confusion and lack of clarity stemming from recent events.
Using Consumer Edge’s U.S. Transact card spend data, we can examine consumer behavior in the airline sector following the tariff announcements. Looking at an index of major airlines*, we see a meaningful drop-off in bookings growth in the days immediately after the Trump administration’s initial statements.
Whether this marks the beginning of a larger trend—one that validates Delta’s cautious stance—remains to be seen. But early signals suggest that American consumers may be following the company’s lead and holding back until there’s more clarity before returning to “business as usual.”
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About the Authors
Alex Breslin-Johnson is a Senior Insights Analyst for the CEIC. Follow him on LinkedIn.
