Delta Airlines planes sit parked at Hartsfield-Jackson Atlanta International Airport. – Andrew Harnik/Getty Images/FILE

Delta Air Lines warned that revenue could fall in the current quarter and that “growth has largely stalled,” as its CEO warned that he’s concerned the economy is likely to fall into a recession.

The airline attributed the weakness in its guidance to “broad economic uncertainty around global trade.” It said due to the change in economic condition, it is no longer standing behind previous guidance that it expected record profits in 2025. And it is dropping plans to offer more seats to passengers later this year, as it sees both businesses and leisure travelers pulling back on travel plans due to the uncertainty.

Asked during an interview on CNBC Wednesday morning if he still believes the US economy will avoid a recession, Delta CEO Ed Bastian said he is worried that is no longer the case.

“I don’t know. I think we’re acting as if we’re going into a recession,” he said. “I think everyone is going into a defensive posture. As a result of that, if that continues, and we don’t get resolution soon, we’ll probably end up in a recession.”

The comments and change in plans and outlook by Delta are a sign that even companies that are not facing a direct impact from tariffs are being impacted by the uncertainty in the US economy that the tariffs have caused.

The company reported that revenue in the just-completed quarter grew 3.3%, in line with recently reduced guidance for the period. It had started the quarter expecting revenue to rise between 7% and 9%. Now it says its second quarter revenue, which includes the start of the summer travel season, will between a gain of 2% and a decline of 2%. It also trimmed its quarterly profit margin, even as it expects to benefit from lower fuel costs.

This is a developing story. It will be updated.

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