Delta’s Earnings Would’ve Set Tone For Uncertain Earnings Season — Then Trump Called Off Tariffs

Strong earnings, withdrawn guidance — that’s a combination you don’t see too often, but that’s the way that America’s most profitable airline kicked off earnings season. And if not for Trump’s 90-day stay on tariffs, DeltaDAL

might have set the tone for hundreds of other companies to do the same amid angst about the rising trade war, global growth, and recession murmurs.

• Delta’s first-quarter earnings were overshadowed by company commentary, with CEO Ed Bastian saying that the airline had a significant reduction from the 10% year-over-year travel demand growth from the start of the year.
• As a result, the airline said that it wouldn’t expand flying capacity in the back half of the year, nor would it accept new Airbus planes, citing tariff impacts and rising recessionary risks.

What now? Just hours after Delta’s earnings announcement, Trump announced that he would delay tariffs on non-retaliating countries. However, it’s unclear if punting the implementation of the policy will give Delta and other discretionary brands something to cheer about. After all, it’s the uncertainty hampering demand — and it’s too early to say whether calling off the dogs (tariffs) will put consumers and corporations at ease.