Even as CEO warns of potential recession, investors are scooping up Delta stock

Back in November, Delta Air Lines CEO Ed Bastian thought the Trump administration could be a “breath of fresh air” for airlines. Now, he’s warning that President Trump’s trade policies could lead to a recession.

“If [trade policy uncertainty] continues, and we don’t get resolution soon, we will probably end up in a recession,” Bastian said in an interview with CNBC Wednesday.

In its earnings report, Delta withdrew its full-year guidance and said it doesn’t expect capacity to grow in the second half of the year. Delta’s first-quarter revenue ticked up 2% to $14 billion. That’s below even the downwardly revised outlook of 3% to 4% sales growth on the quarter Delta gave last month. (The carrier was projecting 7% to 9% growth in January.)

Despite its warnings and pulled guidance, Delta still delivered an earnings beat. Investors scooped up shares of America’s top airline early Wednesday, sending the stock up more than 6%. Wall Street could also be liking comments Delta made on its earnings call that it “will not be paying” tariffs on any airplane deliveries it takes from Airbus.