MIAMI- Atlanta-based Delta Air Lines (DL) and Chicago-based United Airlines (UA) have revealed plans to scale back operations following Delta’s reduced first quarter guidance.
The announcements came during presentations at a JP Morgan investor conference.
Photo: Next Trip Network | FlickrDelta and United Cuts Flights
Delta’s President Glen Hauenstein indicated the airline will reduce its summer flight schedule, stating, “We had a bias to fly whatever we could as we head into summer. We’ve tempered that down to fly what needs to be flown.”
Hauenstein emphasized that summer schedules across the industry are currently “overbuilt” and should expect reductions. While specific details about the extent of these cuts were not provided, Delta plans to release its complete summer schedule on March 22.
United Airlines CEO Scott Kirby followed with his own announcement of capacity reductions, including the early retirement of 21 aircraft. United will specifically target cuts in markets with high government traffic, Canadian routes, and redeye flights.
Kirby projected broader industry trends, predicting “modest supply changes in the short term” and suggesting that “by the time we get to August, every analyst will be writing about capacity cuts.”
He noted that capacity reductions will primarily affect unprofitable routes where airlines don’t hold dominant positions, explaining that “where you see people cutting is the places they’ve lost money” and where they aren’t the leading carrier. Kirby specifically highlighted Chicago and Denver as markets where United maintains its number one position.
Photo: Delta Air LinesDelta CEO Cites Multiple Factors
Delta Air Lines CEO Ed Bastian identified severe weather, aviation accidents, and weakening consumer sentiment as key factors prompting the airline to reduce its first quarter revenue growth forecast from 8% to approximately 4%.
The Southeast United States experienced harsh winter conditions in early January that significantly impacted Delta’s Atlanta hub operations, resulting in approximately $100 million in lost revenue. This disruption was followed by two aviation incidents: American Airlines (AA) Flight 5342’s crash at Washington Reagan National Airport on January 29 and Delta Airlines Flight 4819’s incident in Toronto on February 17.
Bastian noted the American Airlines crash particularly affected traveler confidence, stating, “The deadliest aircraft incident in almost 25 years caused a lot of shock among our consumers. A whole generation didn’t realize these things could happen.”
The immediate aftermath saw a noticeable decline in corporate bookings and overall consumer confidence in air travel.
Economic concerns further complicated Delta’s outlook, with Bastian observing, “There was something going on with economic sentiment, something going on with consumer confidence.”
The airline’s strategy focusing on close-in bookings proved problematic as February and March performance fell below expectations, forcing Delta to reduce fares for last-minute seats.
Despite these challenges, Bastian expressed optimism about April’s performance, stating, “We’re now in a place where in April, we feel like we’re in a pretty good spot.” He also highlighted a potential $1 billion savings opportunity from declining oil costs this year.
Bastian maintained that airlines remain “a safe place to invest” while emphasizing Delta’s continued strong performance in customer satisfaction metrics.
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Delta Air Lines Intercontinental Flight Routes Changes for Summer 2025
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