Delta Air Lines (DAL) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached a record $14.04B GAAP ($13.0B adjusted), with profitability flat year-over-year and strong cost control amid economic uncertainty.

• Net income increased to $240M from $37M in Q1 2024; adjusted EPS was $0.46, GAAP EPS was $0.37.

• Premium and loyalty revenue streams grew, now nearly 60% of total revenue, offsetting softness in main cabin and domestic segments.

• Free cash flow reached $1.3B, and liquidity stood at $6.8B, including cash, equivalents, and undrawn credit.

• Capacity growth for the second half of 2025 will be flat year-over-year to align supply with demand.

Financial highlights

• Adjusted operating income was $591M (4.6% margin), down from $640M (5.1%) year-over-year.

• Passenger revenue grew 3% to $11.48B, with premium products and loyalty travel awards up 7% and 11%, respectively.

• Adjusted operating cash flow was $2.4B; free cash flow was $1.3B after $1.4B in profit sharing and $1.2B in business investment.

• Gross leverage ended the quarter at 2.6x, with $530M in debt repaid.

• Adjusted TRASM was 18.97¢, down 1% year-over-year; adjusted non-fuel CASM up 2.6%.

Outlook and guidance

• June quarter 2025 guidance: operating margin 11–14%, EPS $1.70–$2.30, total revenue expected to be down 2% to up 2% year-over-year.

• Non-fuel unit cost growth for Q2 projected at low single digits year-over-year.

• No updated full-year 2025 guidance due to economic uncertainty; update to be provided as visibility improves.

• Capacity growth for the second half will be flat year-over-year, with Domestic Main Cabin seats declining.

• Projected 2025 annual effective tax rate is 24–26%.