Delta Abandons 2025 Growth Forecast Amid Trade Tensions, and More

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Delta Drops Outlook for 2025 as Trade War Stalls Growth

Delta Air Lines has withdrawn its 2025 financial guidance amid escalating trade tensions, citing significant uncertainty in global markets as President Trump's tariff policies dampen both corporate and consumer travel demand.

Despite posting a first-quarter profit of $240 million, the airline now expects 2025 revenue to range between a 2% decline and a 2% increase, a stark reversal from January's projection of 7% growth and record financial performance.

Key Points

• Growth has "largely stalled" since mid-February after initially strong January results

• Delta is reducing planned capacity growth to flat year-over-year in the second half of 2025

• Q2 revenue forecast ranges from -2% to +2%, below Wall Street's expectation of 1.9% growth

• Premium travel and international routes remain relatively resilient, while domestic main cabin bookings have softened

• American Express partnership delivered record Q1 remuneration of $2 billion, up 13% year-over-year

• Tariff impacts are dampening both corporate and leisure travel spending

What It Means

This pivot signals broader economic concerns as the new trade policies create significant uncertainty for businesses and consumers alike.

Delta's pullback represents an early warning of potential recession risks as tariffs disrupt global trade flows.

While Delta still anticipates profitability in 2025, the abrupt change in outlook suggests mounting headwinds could extend beyond airlines to other consumer-dependent sectors.

Other Key Aviation Industry Updates for Today 👇

2. Delta Taps Ex-EGYPTAIR A220 for Parts Amid Supply Chain Crisis

Delta and Azorra have strategically partnered to dismantle a former EGYPTAIR Airbus A220-300 to recover critical spare parts and lease engines.

This initiative directly addresses ongoing supply chain challenges plaguing the aviation industry, reducing Aircraft On Ground (AOG) times for Delta's A220 fleet.

The partnership represents a practical approach to parts sourcing as airlines continue struggling with component shortages in the post-pandemic landscape.

3. Airbus Selects VAS for Major A380 Teardown Project

Airbus has appointed VAS Aero Services to dismantle three A380 aircraft previously operated by Lufthansa and Malaysia Airlines.

The project, announced April 8, 2025, will harvest used serviceable materials including engines for lease and high-demand parts.

Working with Tarmac Aerosave at their facility in France, VAS will strategically position parts throughout Europe, the Middle East, and Africa.

This brings VAS's total A380 teardown count to 13 aircraft.

4. GE Aerospace Partners with MTU for GEnx Engine Maintenance

GE Aerospace and MTU Maintenance have formalized a long-term partnership to expand GEnx engine maintenance capabilities.

The agreement designates MTU Maintenance Dallas as an authorized service provider with access to GE's proprietary technologies.

The collaboration addresses increasing demand for GEnx maintenance as the engine family, powering Boeing 747-8 and 787 Dreamliner aircraft, has accumulated over 62 million flight hours since its 2011 introduction.

5. Lufthansa City Airlines Welcomes First A320neo to Fleet

Lufthansa City Airlines received its first brand-new Airbus A320neo, named "Ingelheim am Rhein," at Hamburg-Finkenwerder on April 8, 2025.

The aircraft, featuring the new Airspace cabin with larger overhead bins and enhanced passenger comfort, will accommodate 180 travelers starting May.

This delivery expands the carrier's fleet to eight aircraft, with plans to grow to 15 by year-end and add A220-300s from late 2026.

6. Asiana Extends Boeing 767 Operations Through May 2025

Asiana Airlines has postponed the retirement of its sole remaining Boeing 767-300 until May 31, 2025, extending its service by two months beyond initial plans.

The 27-year-old aircraft (HL7528), delivered in September 1999, features General Electric CF6 engines and an all-economy configuration with 290 seats.

It will continue operating twice-daily flights on the Seoul Gimpo-Jeju route, helping the airline maintain capacity amid delivery delays of newer aircraft.

7. Airbus and Panasonic Unveil Next-Gen Connected Aircraft Plan

Airbus and Panasonic Avionics announced a strategic partnership on April 9, 2025, at Hamburg's Aircraft Interiors Expo to co-develop a future Connected Aircraft platform.

The collaboration will integrate Panasonic's Converix IFE server platform with Airbus' HBCplus high-bandwidth connectivity solution.

This technology partnership aims to create an open ecosystem for digital applications across aircraft platforms, benefiting airlines with enhanced connectivity while maintaining compatibility with third-party solutions.

8. Unifly Joins EU Project for Seamless Drone-Aircraft Integration

Drone traffic management provider Unifly has joined the European ENSURE project under SESAR 3 to integrate unmanned and conventional aircraft operations.

Announced April 9, 2025, the partnership focuses on developing standardized interfaces between drone management (U-space) and traditional air traffic control systems.

Core innovations include Dynamic Airspace Reconfiguration technology allowing real-time airspace adjustments based on traffic demands, with demonstrations scheduled throughout 2025.

9. AviLease Delivers Two A320neos to Turkish Airlines

AviLease has finalized a strategic long-term leasing agreement with Turkish Airlines for eight Airbus A320neo aircraft.

Two jets have already been delivered with the remaining six scheduled throughout 2025.

According to AviLease CEO Edward O'Byrne, the agreement supports Turkish Airlines' growth plans, fleet modernization, and sustainability goals.

This transaction strengthens AviLease's position as a major lessor with a portfolio of 200 aircraft serving 48 airlines worldwide.

10. Bosch Backs Vaeridion Electric Aircraft Development

Bosch General Aviation Technology has formed a partnership with Vaeridion to support the development of a nine-passenger all-electric aircraft targeted for market entry by 2030.

The collaboration builds on Vaeridion's existing presence at the Bosch Collaboration Campus in Holzkirchen, where they've established a battery development lab.

The Microliner aircraft aims to deliver zero-emission regional flights with ranges up to 400km (217 nm), addressing growing demand for sustainable short-haul air travel options.