US Airlines Halt Financial Outlooks Amidst Trade-Related Global Economic Uncertainty

A number of the biggest US airlines have published first quarter financial results this week, with differing levels of performance – but one thing in common; a widespread pausing of financial outlooks for the remainder of the year, due to global economic uncertainty brought on by the worsening in international trade relations.

Delta Air Lines and United Airlines both generated profits in the first three months of the year; but American Airlines saw a first quarter net loss of $386m.

American’s quarterly revenue – of $12.6m – was also flat year-on-year; while Delta and United generated revenues of $14bn and $13.2bn respectively.

Indeed, United and SouthWest Airlines saw first quarter revenues hit record levels, but beyond the quarter things are less certain.

All are seeing a weakening in passenger demand. Delta CEO, Ed Bastian said growth “has largely stalled”, due to the uncertain picture around global trade. SouthWest Airlines, meanwhile, said it has seen a softening in domestic leisure flight demand.

“The actions American has taken over the past several years to refresh our fleet, manage costs and strengthen our balance sheet position us well for the uncertainty our industry is facing,” said American Airlines CEO Robert Isom. “The resiliency of the American Airlines team, combined with the investments we have made to differentiate our network, product and customer experience, give us extreme confidence in our ability to navigate the current environment and deliver strong results for the long term.”

Regarding outlook, Delta said: “Based on current trends, we expect June quarter total revenue to be down 2% to up 2% over prior year, with continued resilience in premium, loyalty and international partially offsetting Domestic and main cabin softness. 

Given current uncertainty, Delta is not reaffirming full year 2025 financial guidance and will provide an update later in the year as visibility improves.

American Airlines said: “The company is withdrawing its full-year guidance at this time. American intends to provide a full-year update as the economic outlook becomes clearer.”