• Delta Air Lines has said global economic uncertainty over tariffs is hurting bookings.
• "Growth has largely stalled," CEO Ed Bastian said in the airline's first-quarter earnings release.
• Delta said it would ax plans to grow flight capacity in the second half of 2025 as a result.

Delta Air Lines warned that Donald Trump's tariff plan is hitting the airline where it hurts.

"With broad economic uncertainty around global trade, growth has largely stalled," CEO Ed Bastian said Wednesday in a statement alongside its first-quarter earnings.

"In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control," he added.

As well as managing costs and capital spending, Delta has decided not to expand its capacity in the second half of the year, it said. It previously planned to grow by around 4%.

Bastian also told CNBC the airline also had to deal with "a really tough weather month in January" and the impact of high-profile accidents.

The airline reported quarterly revenue of $13 billion, with an operating profit of $591 million. It also reported earnings per share of 46 cents, beating analyst expectations.

In premarket trading, Delta's share price briefly rose as much as 3.5% before turning negative.

Delta expects things to improve in the next quarter, with earnings per share between $1.70 and $2.30 on an operating margin between 11% and 14%.

It said total revenue compared to last year could fall 2% or rise up to 2%.

The company didn't reaffirm financial guidance for the full year, citing "current uncertainty."

"We're in uncharted, unprecedented uncertainty when you look at what's happened and the pivot so quickly to this self-inflicted situation," Bastian said of the tariffs in a CNBC broadcast interview Wednesday morning.

"I think we're acting as if we're going to a recession," he added. "I think everyone is going into a defensive posture."

Airline stocks have been sinking since around late February on concerns about demand falling due to economic uncertainty.

Delta is down 39% since the start of the year — while rivals United and American have fallen 41% and 47%, respectively.

• A Virgin Atlantic flight diverted halfway through its journey from London to Mumbai.
• The Airbus A350 landed at an airport in Turkey and didn't take off for another 40 hours.
• Passengers spent the first night in the departure lounge before hotels could be arranged.

Airline passengers have been delayed nearly two days after a medical emergency forced an unexpected stopover.

Virgin Atlantic Flight 358 took off from London Heathrow Airport at midday Wednesday and was scheduled to land in Mumbai around nine hours later.

However, data from Flightradar24 shows the Airbus A350 turned around over Turkey four hours into the journey.

It diverted to Diyarbakır Airport, which is also used as a military base and doesn't usually accommodate large, wide-body planes like the A350.

The airport is around 2,300 miles as the crow flies from Mumbai and 2,100 miles from London.

An airline spokesperson told Business Insider that one of the passengers was severely unwell and was helped by local medical teams after leaving the plane.

The A350 also required technical inspections, which appear to have exacerbated the delay.

Some passengers took to X to complain about the ordeal, sharing a video of the disgruntled crowd.

One user said that 12 hours after landing, passengers were yet to receive "proper food or accommodation."

In an X post, the airline said customers had to stay in the departure lounge overnight because it was outside the airport's operating hours — while refreshments, including water, were provided.

There were also difficulties with immigration requirements before airport authorities "made an exception to allow passengers to leave the airport temporarily," another post from the airline said.

"The majority of our customers were provided with overnight hotel accommodation ahead of their onward journey today," the Virgin Atlantic spokesperson told BI Friday. "We'd like to sincerely apologize for the delay and any inconvenience caused."

They added that, after receiving the necessary technical approvals, the flight was set to continue at noon local time on Friday — almost 41 hours after landing in Diyarbakır.

The Airbus A350 is scheduled to land in Mumbai at 8:30 p.m. local time Friday.

• Airline stocks have been plummeting this year on fears of reduced demand.
• They were among the hardest hit by Trump's Wednesday tariff announcements.
• Analysts also expect ticket prices to rise for customers as a result of the sweeping tariffs.

Tariffs are spelling more bad news for airlines and passengers.

Even before Donald Trump's self-styled "Liberation Day" announcement, the big three airline stocks had fallen around a quarter in a month.

Analysts have already warned that airline customers are set to have less spending money while plane ticket prices rise. Morgan Stanley and Bank of America analysts said the effective tariff rate was about double what they expected.

With US companies paying the tariffs on items they import, prices are set to go up for Americans.

"The resulting hit to purchasing power could take real disposable personal income growth in 2Q-3Q into negative territory, and with it the risk that real consumer spending could also contract in those quarters," JPMorgan Chase's chief US economist Michael Feroli wrote in an analyst note.

Vacations aren't a necessity, so are something people can forego when they tighten their purse strings. Cruise and hotel stocks have dipped, too. Corporate travel is expected to drop as well, since the tariffs are designed to incentivize doing business at home.

Higher-than-expected tariffs have exacerbated an already dreary outlook for travel.

Delta Air Lines and United Airlines' share prices have fallen more than a third since the start of the year. American Airlines' is down 44%.

Stocks dipped on Tuesday after Jefferies analysts downgraded American Airlines and Delta Air Lines to Hold ratings.

They said consumer sentiment was at a four-year low and cited "swelling macro uncertainty." In other words, fewer people want to fly because of the state of the economy.

On Monday, Virgin Atlantic executives also warned of softening demand for Americans flying to the UK — although travel in the opposite direction remains at expected levels.

"We think that's quite a natural reaction to the general consumer uncertainty there is in the US at the minute," chief financial officer Oli Byers said in comments reported by several outlets.

The day after the tariffs were announced, the big three airline stocks dropped between 10% and 15% — compared to the broader S&P 500's 5% decline.

Airline ticket prices have been lower this year due to slower demand, but some analysts say they're set to get more expensive.

Airfares set to rise

Tariffs are set to hit planemakers with the costs ultimately being passed down to passengers.

Boeing CEO Kelly Ortberg told a Senate hearing Wednesday that 80% of its airplanes are sold to customers outside the US, and a fifth of the production materials are imported.

"Free trade is very important to us," he added.

Morningstar's analyst for aerospace and defense equities, Nicolas Owens, said: "Investors concerned that the new import tariffs might be devastating to US aerospace firms may overestimate the risk."

However, there is also the risk of retaliatory tariffs on exports. Boeing's share price fell more than 10% on Thursday.

While European rival Airbus has an assembly line in Alabama, it would still have to import parts there.

"Obviously there would be an increase of cost and most probably in price for the airlines, and therefore to the end customers," CEO Guillaume Faury said in February.

In a note Thursday, analysts at Vertical Research Partners also warned they expect airfares to get more expensive.

"Ultimately we see these cost increases being passed on to airlines, and the flying public, which logically will have a negative impact on passenger demand […] and airline profits," they wrote.

Business Insider attended a summit at Airbus' headquarters in Toulouse, France, last week. At the summit, executives spoke to reporters ahead of the tariff announcement.

"We are in an industry where I think tariffs will be very, very damaging," Faury said. "Probably more damaging to the US at first glance."

He also pointed to the effects of a 17-year dispute between the US and Europe over subsidies given to Boeing and Airbus, with tariffs imposed as a result.

"It was so bad for everybody that it came to a cease-fire," he said.

Airlines have already taken a hit as Canadians book fewer flights to the US. Europeans are also starting to lose interest in transatlantic travel, the CEO of hotel operator Accor told Bloomberg.

While airlines have yet to see a drop in demand on this route, the looming trade war could change that.