Josh Weiner
Strong operational performance, cost discipline, and diversified revenue streams position Delta for continued profitability in 2025
Delta Air Lines (NYSE: DAL) today announced its financial results for the first quarter of 2025, showcasing solid operational execution and resilient revenue performance despite a shifting macroeconomic landscape. The airline also provided financial guidance for the second quarter, along with updates on its long-term strategy.
Key Highlights from Q1 2025:
- Total Operating Revenue: $14.0 billion (GAAP), $13.0 billion (adjusted)
- Operating Income: $569 million (GAAP), $591 million (adjusted)
- Net Income: $320 million (GAAP), $382 million (adjusted)
- Earnings Per Share: $0.37 (GAAP), $0.46 (adjusted)
- Operating Cash Flow: $2.4 billion
- Free Cash Flow: $1.3 billion
- Total Debt: $15.8 billion, with $531 million in repayments during the quarter
CEO Ed Bastian stated:
“Despite the quarter unfolding differently than anticipated, Delta delivered industry-leading profitability. Thanks to the commitment of our 100,000 employees, we’ve maintained financial stability and operational excellence.”
With the broader global economy experiencing slower growth and rising uncertainty, Delta is tightening its focus on cost control and capacity discipline. The airline will scale back planned capacity growth in the second half of the year to align more closely with current demand, maintaining a flat year-over-year growth rate.
Outlook for Q2 2025
Delta expects:
- Operating Margin: 11% to 14%
- Earnings Per Share (EPS): $1.70 to $2.30
- Total Revenue YoY Change: -2% to +2%
The airline has chosen not to reaffirm full-year 2025 guidance due to market volatility but remains confident in its ability to generate strong free cash flow and sustain industry-leading profitability.
Revenue Trends
President Glen Hauenstein noted that Q1 revenue growth was driven by robust performance across premium travel, loyalty programs, and international routes.
- Premium cabin sales rose 7% YoY
- Amex partnership generated $2.0 billion, up 13% YoY
- International markets saw steady growth:
- Pacific: +16% revenue on double-digit capacity growth
- Transatlantic: +5% revenue, +8% unit revenue
- Latin America: +5% revenue
- Corporate travel growth moderated, up low-single digits YoY, with banking and tech leading
Cost and Operations
CFO Dan Janki emphasized that operational excellence and cost controls led to better-than-expected unit cost growth.
- Adjusted non-fuel costs: $9.9 billion
- Non-fuel CASM: 14.44¢, up 2.6% YoY
- Adjusted fuel expense: $2.4 billion, down 7% YoY
- Fuel price per gallon: $2.45, down 11% YoY
Janki added: “We’re staying agile with our cost base and capital spending as we prioritize financial durability and strategic investments.”
Balance Sheet and Liquidity
- Adjusted Net Debt: $16.9 billion, down $1.1 billion from year-end 2024
- Credit Upgrade: Moody’s raised Delta’s credit rating to its highest in decades
- Liquidity: $6.8 billion, including $3.1 billion in unused credit
Strategic and Operational Milestones
- Recognized as the most on-time airline in North America and winner of the Cirium Platinum Award for operational excellence for the fourth consecutive year
- Expanded international footprint with new routes to Marrakech, Accra, Cancun, Tel Aviv, and Melbourne
- Took delivery of nine new aircraft including A321neo, A220-300, A330-900, and A350-900
Customer Experience and Loyalty Enhancements
- Opened a new 25,000 sq. ft. Sky Club in Atlanta
- Rolled out fast, free WiFi to over 90% of the mainline fleet
- Launched new Delta One experiences, including partnerships with Shake Shack and Taittinger Champagne
- Recognized by Forbes, Fortune, and JUST Capital as a top employer and most admired airline
Sustainability Leadership
- Expanded collaboration with Airbus UpNext and JetZero on next-gen aircraft innovation
- Continued leading industry efforts in scaling sustainable aviation fuel (SAF)
- Named among Fast Company’s Most Innovative Companies of 2025 for sustainability achievements
Delta continues to leverage its premium brand, operational excellence, and loyalty ecosystem to navigate uncertainty and deliver long-term value for shareholders, customers, and employees alike.
For more information, visit news.delta.com
