Delta Air Lines announces March quarter 2025 financial results

Delta Air Lines today reported financial results for the March 2025 quarter and provided its outlook for the June quarter.  

ATLANTA, April 9, 2025 /PRNewswire/ — Delta Air Lines (NYSE: DAL) today reported financial results for the March quarter and provided its outlook for the June quarter.  Highlights of the March quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.

“While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to prior year and is expected to lead the industry.  I would like to thank our people for their outstanding performance and hard work during the quarter,” said Ed Bastian, Delta’s chief executive officer.

“With broad economic uncertainty around global trade, growth has largely stalled.  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.”

“We expect June quarter profitability of $1.5 to $2 billion.  Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook.  Given our position of strength, our bias toward action and the decline in fuel prices, Delta remains well positioned to deliver solid profitability and free cash flow for the year.  I expect that our financial results will continue to lead the industry and validate our strategy to create differentiation and greater financial durability.”

March Quarter 2025 GAAP Financial Results

• Operating revenue of $14.0 billion
• Operating income of $569 million with an operating margin of 4.0 percent
• Pre-tax income of $320 million with a pre-tax margin of 2.3 percent
• Earnings per share of $0.37
• Operating cash flow of $2.4 billion
• Payments on debt and finance lease obligations of $531 million
• Total debt and finance lease obligations of $15.8 billion at quarter end

March Quarter 2025 Non-GAAP Financial Results

• Operating revenue of $13.0 billion
• Operating income of $591 million with an operating margin of 4.6 percent
• Pre-tax income of $382 million with a pre-tax margin of 2.9 percent
• Earnings per share of $0.46
• Operating cash flow of $2.4 billion

Financial Guidance¹

Given current uncertainty, Delta is not reaffirming full year 2025 financial guidance and will provide an update later in the year as visibility improves.

Revenue Environment and Outlook

“Delta delivered revenue of $13 billion, 3.3 percent higher than last year, consistent with revised guidance.  Through the quarter, diverse, high-margin revenue streams showed resilience, improving over prior year and approaching 60 percent of total revenue,” said Glen Hauenstein, Delta’s president.

“Based on current trends, we expect June quarter total revenue to be down 2 percent to up 2 percent over prior year, with continued resilience in premium, loyalty and international partially offsetting Domestic and main cabin softness.  2025 is playing out differently than we expected at the start of the year.  As a result, we are adapting to current conditions while staying true to our long-term strategy.”

• Record March quarter revenue supported by diverse revenue streams: Delta’s year-over-year revenue growth of up 3.3 percent in the March quarter was driven by the resilience of diversified revenue streams, which contributed nearly 60 percent of total revenue in the March quarter and grew mid-single digits over prior year.  Adjusted total unit revenue (TRASM) was down 1.0 percent from the March quarter of 2024.
• Premium and loyalty highlight the strength of Delta’s core customer: Premium revenue growth continues to outpace main cabin, growing 7 percent on a year-over-year basis in the March quarter.  American Express remuneration of $2.0 billion was a March quarter record, up 13 percent year-over-year, driven by strong cobrand spend and acquisitions.
• International revenue grew mid-single digits year-over-year: Pacific revenue grew 16 percent on double-digit capacity growth, with unit revenue inflecting positive.  Transatlantic revenue was up 5 percent over prior year, with unit revenue up 8 percent.  Latin America revenue grew 5 percent over prior year with modestly negative unit revenue growth.
• Corporate growth moderated through the quarter: After starting the year with momentum, a reduction in corporate confidence stalled growth in February and March.  For the quarter, corporate sales* were up low-single digits compared to prior year, with strength led by the banking and technology sectors.

Cost Performance and Outlook

“Our teams ran a strong operation despite challenging weather at the start of the year, enabling us to drive efficiency and deliver non-fuel unit cost growth of up 2.6 percent over prior year.  This was better than our initial expectation and a sequential improvement from the end of 2024,” said Dan Janki, Delta’s chief financial officer.  “As we reduce capacity growth, we are taking incremental action to manage costs.  We expect non-fuel unit cost growth consistent with our long-term target of up low-single digits in the second quarter and through the rest of the year.”

March Quarter 2025 Cost Performance

• Operating expense of $13.5 billion and adjusted operating expense of $12.4 billion
• Adjusted non-fuel costs of $9.9 billion
• Non-fuel CASM was 14.44¢, an increase of 2.6 percent year-over-year
• Adjusted fuel expense of $2.4 billion was down 7 percent year-over-year
• Adjusted fuel price of $2.45 per gallon decreased 11 percent year-over-year with a breakeven refinery contribution

Balance Sheet, Cash and Liquidity

“Delta’s decade-plus commitment to our consistent strategy, investment and execution has created a differentiated and durable business that positions us to navigate periods of uncertainty,” Janki said.  “We ended the first quarter with gross leverage of 2.6x and expect to repay at least $3 billion of debt this year as we continue to strengthen our investment grade balance sheet.  During the quarter, we achieved our highest credit rating in decades following an upgrade from Moody’s, reflecting our continued focus on debt reduction as we progress towards our long-term gross leverage target of 1x.”

• Adjusted net debt of $16.9 billion at March quarter end, a reduction of $1.1 billion from the end of 2024
• Payments on debt and finance lease obligations for the March quarter of $531 million
• Weighted average interest rate of 4.2 percent with 95 percent fixed rate debt and 5 percent variable rate debt
• Adjusted operating cash flow in the March quarter of $2.4 billion, and with gross capital expenditures of $1.2 billion, free cash flow was $1.3 billion
• Air Traffic Liability ended the quarter at $10.0 billion
• Liquidity* of $6.8 billion at quarter-end, including $3.1 billion in undrawn revolver capacity

March Quarter 2025 Highlights

Operations, Network and Fleet

• Operated the most on-time airline year-to-date, leading competitive set in on-time departures and arrivals and network peers in completion factor¹
• Recognized as the Top U.S. Airline for operational performance in 2024 by the Wall Street Journal for the fourth consecutive year
• Earned the Cirium Platinum Award for operational excellence in 2024 for the fourth consecutive year and named the most on-time airline in North America
• Took delivery of nine aircraft in the quarter, including A321neo, A220-300, A330-900 and A350-900 aircraft
• Announced Delta’s first ever service from ATL to Marrakech, Morocco, beginning in October, and seasonal service to Accra, Ghana, starting in December
• Launching the first international Delta flight from Austin with new nonstop service to Cancun, Mexico, starting in December 2025
• Resumed daily, non-stop service from JFK to Tel Aviv on April 1
• Introducing nonstop service from Los Angeles to Melbourne, Australia, starting December 2025

Culture and People

• Celebrated Delta people with $1.4 billion in profit sharing on Valentine’s Day, recognizing the outstanding performance of Delta’s 100,000 employees in 2024
• Recognizing our people first culture, Delta ranked No. 15 on the Fortune 100 Best Companies to Work For list, selected by the workplace culture experts at Great Place to Work
• Returned to CES in 2025 to give the keynote address highlighting Delta’s innovative vision for the next century of flight including Delta Concierge and the evolution of Delta Sync, along with new partnerships with Uber and YouTube
• Named No. 11 on the Fortune World’s Most Admired Companies list and the top airline, the twelfth year Delta has been recognized
• Ranked No. 9 on the Forbes list of America’s Best Large Employers 2025
• Recognized by JUST Capital and CNBC as the No. 1 airline and one of the top transportation companies on the annual list of JUST 100, a ranking of companies based on the issues Americans care about most
• Unveiled the newest livery celebrating Delta’s centennial year during the airline’s Centennial Gala in front of the newly renovated Delta Flight Museum
• Contributed $1 million to the American Red Cross for Los Angeles wildfire relief efforts and an additional $325,000 to Los Angeles Fire Department Foundation, Los Angeles Regional Food Bank, YMCA of Metro Los Angeles and Kings Cares Foundation to help with local response

Customer Experience and Loyalty

• Completed construction of the new Sky Club in ATL Concourse D, spanning 25,000 square feet with seating for more than 500
• Continued rolling out fast, free WiFi for SkyMiles members with over 90 percent of the mainline fleet now equipped
• Began flying aircraft with the new, previously announced cabin design on A350 and Boeing 757 aircraft, elevating the travel experience with new seating materials, enhanced lighting and a refreshed color palette
• Expanded first-of-its-kind Shake Shack partnership to customers sitting in First Class departing from ATL, LAX, LGA and SEA on flights over 900 miles
• Announced partnership with luxury Champagne brand Taittinger, available to Delta One customers on international flights, further enhancing the best-in-class Delta One experience
• Revamped the Special Meals menu for customers in First Class and Delta One departing from the U.S. with chef-curated meals made fresh in-house for those with dietary restrictions and preferences
• Named the Official Global Airline of the PGA TOUR and PGA TOUR Champions, beginning a multi-year partnership with the organization

Environmental Sustainability

• Announced deepened partnership with Airbus, shaping the future of global travel through Airbus’ UpNext Innovation lab and Delta’s Sustainable Skies Lab and announced collaboration on the next phase of testing a new, more fuel-efficient flying technique, fello’fly
• Partnering with JetZero to develop an aircraft incorporating a Blended-Wing-Body (BWB) design that is expected to be 50 percent more fuel efficient than aircraft in operation today
• Recognized by Fast Company as one of its Most Innovative Companies for 2025 due to sustainability initiatives, including Delta’s industry leading work to scale sustainable aviation fuel (SAF)

March Quarter 2025 Results

March quarter results have been adjusted primarily for third-party refinery sales and gains/losses on investments as described in the reconciliations in Note A.

About Delta Air Lines  Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer. 

There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,000 peak day Delta and Delta Connection flights to more than 290 destinations on six continents, connecting people to places and to each other. 

Delta served more than 200 million customers in 2024 — safely, reliably and with industry-leading customer service innovation — and was recognized by J.D. Power this year for being No. 1 in First/Business and Premium Economy Passenger Satisfaction. The airline also was recognized as the top U.S. airline by the Wall Street Journal and as North America’s most on-time airline in 2024 and our people earned the Platinum Award for Operational Excellence from Cirium. 

We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people’s genuine and enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us. 

Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo. 

As the leading global airline, Delta’s mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential. 

Powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta’s premium product line is elevated by its unique partnership with Wheels Up Experience. 

In addition to the awards from J.D. Power and Cirium, Delta has been recognized among Fast Company’s Most Innovative Companies; the World’s Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; one of Glassdoor’s Best Places to Work; the top carrier for business travelers by Business Travel News; and topped 5 categories, including the Best U.S. Airline award, in Forbes Travel Guide’s Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light for the past seven years as one of the most community minded companies in the U.S. 

Credit: worldairlinenews.com