By MICHELLE CHAPMAN, Associated Press Business Writer

Delta Air Lines pulled its guidance for 2025 Wednesday as the trade war scrambles expectations for business and household spending and depresses bookings across the travel sector.

“With broad economic uncertainty around global trade, growth has largely stalled,” CEO Ed Bastian said in a statement on Wednesday. “In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control. This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures.”

In the first quarter, Delta earned $240 million, or 37 cents per share. A year earlier it earned $37 million, or 6 cents per share.

Stripping out one time costs and benefits, earnings were 46 cents per share. That’s better than the 40 cents per share analysts polled by Zacks Investment Research predicted.

Yet shares of Delta Air Lines Inc. declined before the opening bell and the sector has been battered this year as investors, anticipating trouble from rising tariffs, put their money elsewhere. Shares are down 41% this year for the nation’s most profitable airline, which is better than rivals American and United.

Quarterly operating revenue climbed to $14.04 billion from $13.75 billion, beating Wall Street’s estimate of $13.81 billion.

The average fuel price per gallon declined to $2.47 from $2.79.

Delta cut its first-quarter earnings and revenue outlook last month, saying at the time that a recent decline in consumer and corporate confidence amid growing uncertainty over the economy was weakening domestic demand.

Delta said in March that it expected first-quarter revenue to rise between 3% and 4% compared with a year earlier, down from projections of 7% and 9%.

In January, Delta released fourth-quarter results that topped Wall Street’s profit and revenue estimates, as the company benefited from strong demand during the crucial holiday period.

Yet conditions have deteriorated since then with a burgeoning trade war leaving consumers and businesses unsure about what comes next. Both have begun to pull back on spending, and that includes travel.

Bastian said Delta foresees June quarter profitability of $1.5 to $2 billion but will not update its full-year outlook “given the lack of economic clarity.”

The airline previously said that it expected 2025 earnings of more than $7.35 per share and free cash flow of more than $4 billion. At the time the company was expecting strong travel demand to continue, and that has clearly changed.

A month ago Bastian was confident enough to stick by Delta’s guidance for the year. Speaking at the JPMorgan Industrial Conference, the executive said at the time that Delta was feeling good about where it was at.

“There’s nothing that we’ve been through these last couple of months to indicate there’s any cracks in any of this,” he said. “We anticipate margins continuing to expand and we think margins will expand this year, even with the slower start to the year.”

Yet uncertainty over U.S. trade policy has rattled companies in every economic sector since then.

For the second quarter, the airline is looking for earnings between $1.70 and $2.30 per share, with total revenue down 2% to up 2%. Analysts surveyed by FactSet predict earnings of $2.21 per share.

“2025 is playing out differently than we expected at the start of the year,” Delta President Glen Hauenstein said. “As a result, we are adapting to current conditions while staying true to our long-term strategy.”

By TERRY TANG and KARENA PHAN, Associated Press

LOS ANGELES (AP) — Loyal customers of Asian supermarkets and other grocery stores that specialize in selling imported food heaved a collective sigh of dismay when President Donald Trump announced extra-high U.S. tariffs on goods from dozens of countries.

What would happen to prices at 99 Ranch Market and H Mart?, wondered Asian Americans and immigrants who shop at the two American chains for preferred brands like Japan’s Kewpie mayonnaise and China’s Pearl River light soy sauce.

“We’re all going to be crying in H Mart,” a TikTok user commiserated, referencing the title of a bestselling memoir by Korean American musician Michelle Zauner as other posters shared videos of their “pre-tariff hauls” from Asian supermarkets.

The steeper tariff rates Trump set for imports from nations he accused of unfair trade practices took effect first thing Wednesday along with a 10% baseline tax on products from the rest of the world.

Several countries in Asia have some of the largest levies, including South Korea (25%), Vietnam (47%) and Cambodia (49%). After China approved counter-tariffs and said it would fight a U.S. trade war “to the end,” the president on Tuesday raised the rate on Chinese goods to 104%.

At a 99 Ranch Market less than a mile from the UCLA campus, one of the California-based chain’s 58 stores, regular shopper Artis Chitchamnueng said he won’t be able to go anywhere else to find the foods he likes if prices skyrocket.

“I think (Trump’s) just like playing a lot of like mind games of just trying to like take control of the market and stuff like that,” Chitchamnueng, a part-time worker and entrepreneur, said. Many customers have said on social media they don’t know if they will be able to continue doing their routine grocery shopping at 99 Ranch Market.

Even if mainstream grocers stock some of the same items, a lot of imported items are less expensive at the specialty supermarkets. An 18-ounce bottle of Lee Kum Kee Panda oyster sauce, for example, retails for $3.99 at 99 Ranch. The websites for Safeway and Walmart list the same bottle for $4.79 and $10.45, respectively.

The stores stocking a wide range of noodles, dried vegetables, herbs and skin care products from China, Japan, South Korea, Thailand and Vietnam can be a source of comfort for immigrants and foreign students craving the tastes of home.

Tony He, an international student at UCLA, said Trump’s tariff policies confused him but he would continue shopping at 99 Ranch to get his groceries if prices increase. “As long as I need Asian food, I usually come here,” He said.

Shopping for culturally specific foods, drinks and condiments in the U.S. has come a long way from the once-meager offerings found in the “ethnic food” aisles of American supermarkets. International supermarkets and small grocery stores across the country generated $55.8 billion in revenue last year, according to market research firm IBISWorld.

The sector has recorded an annual growth rate of roughly 3% since 2019, and an IBISWorld forecast predicted revenue for grocery stores with international brands would go up to over $64 billion by 2029.

Analysts attribute the increase in demand to the growth of Asian and Hispanic immigrant populations, as well as to the tastes of younger consumers who enjoy experiencing new flavors. Mass market stores and brands increasingly have stocked or created Americanized versions of Asian products to ride the trend.

The specialty rice used for sushi that mainstream supermarkets sell also is usually imported from South Korea, China or Japan, noted Nancy Qian, a professor of economics at Northwestern University’s Kellogg School of Management. She thinks tariffs may lead consumers to find alternatives for their favorite brands.

“When my parents first came to America in the ’80s from China, they couldn’t really get the same type of rice as they did in China, So they switched to a different type of rice,” Qian said. “I think families and restaurants and people, they’ll do what it takes to make ends meet. And they’ll substitute foods. They’ll buy new foods.”

Independent shops that are integral to smaller Asian American communities are also bracing for a hit. The owner of Not Just Spices, a tiny South Asian grocery in Providence, Rhode Island, said he was concerned about costs rising costs for everyday products such as basmati rice sourced from India and Pakistan, or the smaller-grained Kalijira rice from his native Bangladesh.

“When things are cheaper, people usually buy extra. Now they buy exactly what they need,” said Mohammed Islam, who has run Not Just Spices since 1998. “People are scared of spending any money because they don’t know what’s going to be happening.”

Trump announced a tariff of 37% on goods from Bangladesh, 26% on neighboring India’s products, 29% on items from Pakistan and a whopping 44% on imports from the island country of Sri Lanka, known for its cinnamon and other spices.

If he does have to raise prices as the tariff’s impacts start to hit supplies, Islam trusts his customers won’t blame him.

“People don’t complain because it’s already in the news,” he said. “It’s not like I’m the one who is raising the price.”

Customers at Hispanic supermarkets also may be shopping more carefully. Trump has repeatedly threatened to impose a 25% tariff on most imports from Mexico.

In Phoenix, roommates Andrew Colvin and Mario Aviles typically patronize Los Altos Ranch Market, where they say the bulk of the produce and snacks they buy are from Mexico. The sprawling supermarket, which includes a deli and a bakery, is one of the 115 stores the Heritage Grocers Group operates in six states.

“We expect pretty much everything to go up,” said Colvin, who was stocking up on Parrot canned coconut water, his favorite drink, in case the price goes up. “I probably eat 14 avocados a week. There’ll be a lot less of that.”

Aviles doesn’t want to shop elsewhere. If tariffs result in serious sticker shock, he is prepared to restrict himself instead.

“No more avocados, no more mangoes, no more orange,” Aviles said.

Some experts say it wouldn’t hurt to stock up on non-perishables within limits and individual household budgets. But shoppers need to avoid the “panic buying” that accompanied the start of the COVID-19 pandemic, which could create shortages and cause additional price increases, Qian said.

While it’s not yet clear how much of the tariffs will get passed onto U.S. consumers, researchers say any price increases would disproportionately affect low-income households.

“These are regressive taxes. And for the elementary reason that affluent people do not spend 100% of their incomes and disadvantaged people do,” Steven Durlauf, director of the University of Chicago’s Stone Center for Research on Wealth Inequality and Mobility.

Northwestern University’s Qian said the cumulative economic impacts of Trump administration tariffs may hold one possible silver lining if they bring people back to the cultural enclaves of major cities.

“If you think about the old Chinatowns, or the old, like, Little Italys of America,” she said. “The reason that those places became really important for their communities was because that was the only place where you can get the thing you wanted.”

Tang reported from Phoenix. Associated Press video producer Akira Kumamoto in Los Angeles, California contributed to this report. Associated Press writer Matt O’Brien in Providence, Rhode Island, contributed to this report.

By WILL WEISSERT, CHEYANNE MUMPHREY and SUSAN HAIGH, Associated Press

WASHINGTON (AP) — More than $1 billion in federal funding for Cornell University and around $790 million for Northwestern University has been frozen while the government investigates alleged civil rights violations at the schools, the White House said.

It’s part of a broader push to use government funding to get major academic institutions to comply with President Donald Trump’s political agenda. The White House confirmed the funding pauses late Tuesday night but offered no further details on what they entail or what grants to the schools are being affected.

Related Articles

Trump disrupts global economic order even though the US is dominant

World shares fall further as Trump threatens still more tariff hikes

China raises its retaliatory tariff on the US to 84% as it vows to ‘fight to the end’

Minnesota won’t comply with Trump on DEI in schools, state officials say

Turkish U graduate student detained by ICE is said to face new charges

The moves come as Trump’s Republican administration has increasingly begun using governmental grant funding as a spigot to try to influence campus policy, previously cutting off money to schools including Columbia University and the University of Pennsylvania. That has left universities across the country struggling to navigate cuts to grants for research institutions.

In a statement, Cornell said that it had received more than 75 stop work orders earlier Tuesday from the Defense Department related to research “profoundly significant to American national defense, cybersecurity, and health” but that it had not otherwise received any information confirming $1 billion in frozen grants.

“We are actively seeking information from federal officials to learn more about the basis for these decisions,” said the statement from Michael I. Kotlikoff, the university president, and other top school officials.

Northwestern spokesperson Jon Yates said Tuesday evening the school had not received any notice from the federal government. Yates said the school has fully cooperated with investigations by both the Education Department and Congress.

“Federal funds that Northwestern receives drive innovative and life-saving research, like the recent development by Northwestern researchers of the world’s smallest pacemaker, and research fueling the fight against Alzheimer’s disease,” Yates said. “This type of research is now at jeopardy.”

Last month, the Education Department sent letters to more than 60 universities, including Cornell, based in Ithaca, New York, and Northwestern, based in Evanston, Illinois, warning of “potential enforcement actions if they do not fulfill their obligations” under federal law to “protect Jewish students on campus, including uninterrupted access to campus facilities and educational opportunities.”

The Trump administration has threatened to cut off federal funding for universities allowing alleged antisemitism to go unchecked at campus protests last year against Israel’s war with Hamas in Gaza — accusations the universities have denied.

FILE – Signs are displayed outside a tent encampment at Northwestern University April 26, 2024, in Evanston, Ill. (AP Photo/Teresa Crawford, File)

The funding freezes have jeopardized science and research without advancing the goal of creating campuses free of antisemitism, said Ted Mitchell, president of the American Council on Education.

”This was wrong last week, it is wrong this week, and it will be wrong next week,” he said.

A spokesperson for the Education Department did not respond to a request for comment.

Officials have already singled out Columbia University, making an example of it with threats to withhold $400 million in federal funds.

The administration accused Columbia of failing to stop antisemitism during protests against Israel that began at the New York City university last spring and quickly spread to other campuses, a characterization disputed by those involved in the demonstrations.

As a precondition for restoring that money — along with billions of dollars more in future grants — the Trump administration demanded unprecedented changes in university policy.

Columbia’s decision to bow to those demands, in part to salvage ongoing research projects at its labs and medical center, has been criticized by some faculty and free speech groups as capitulating to an intrusion on academic freedom.

The Trump administration has since issued similar demands to Harvard University as a condition for receiving almost $9 billion in grants and contracts. It also has paused $510 million in federal grants and contracts for Brown and dozens of research grants at Princeton.

Mumphrey reported from Phoenix. Haigh reported from Hartford, Conn.