Delta warns of no growth in airline industry amid declining demand

In the United States, airline traffic has shown a steady increase since the onset of the pandemic in 2020. However, recent indications suggest that this trend has come to a halt. During the first quarter of 2025, traffic at Charlotte Douglas International Airport, which ranks as the 10th busiest in the U.S., fell by 7.5% compared to the same timeframe in the previous year. The overall airline industry has been experiencing a slight downturn since early April, with Transportation Security Administration screening numbers showing a decrease in passengers from approximately 231 million to 229 million from January 1 to April 10, 2025. This decline reflects a broader pattern across major U.S. airports, where passenger traffic has also seen reductions, such as a 1.35% decline at Atlanta and a 1.8% drop at Dallas Fort Worth. Further contributing to this downward trend is the diminishing traffic from international routes, particularly from Canada, Mexico, and Western Europe, which have faced challenges stemming from tariff disputes. Additionally, supply chain issues related to aircraft availability have compounded these struggles, as major manufacturers Airbus and Boeing face delays in deliveries. Bank of America analyst Andrew Didora emphasized the uncertainty surrounding demand as airlines navigate a rapidly shifting market landscape. Delta's management echoed these concerns, revealing expectations of no growth in the second half of the year. Prospects for business travel are leveling off, and a noted slowdown in transatlantic demand adds to the unsettling outlook for the industry. Charlotte Douglas CEO Haley Gentry commented on the situation, stating that the anticipated number of travelers this summer is expected to be on par with last year, rather than witnessing the robust growth seen in previous years. The rapid surge in passenger volume had previously strained airport facilities and services, indicating that the growth was not only formidable but also challenging for airport operations. As the industry confronts new challenges, stakeholders continue to seek ways to enhance the customer experience while preparing for a future that remains uncertain in the aftermath of the pandemic.