Delta Air Lines Q1 Financial Highlights

Delta Air Lines Inc. has announced its financial results for the first quarter of fiscal year 2025, revealing a 2% increase in total operating revenue, reaching $14 billion. Despite this growth, the company experienced a 7% decline in operating income, which amounted to $569 million. Notably, diluted earnings per share (EPS) saw a dramatic 516% year-on-year increase, settling at $0.37 per share.

Looking Ahead to Q2

For the upcoming quarter, Delta anticipates revenue to fluctuate between a 2% decrease and a 2% increase. The operating margin is projected to be between 11% and 14%, with EPS expected to range from $1.70 to $2.30. Due to prevailing economic uncertainties, Delta has chosen not to reaffirm its full-year 2025 financial guidance at this time, promising updates as the year progresses.

CEO's Strategic Response

CEO Ed Bastian addressed the challenges posed by the current economic climate, emphasizing a strategic focus on controllable factors. "In response to the stalled growth in global trade, we're adjusting our capacity growth plans to remain flat compared to last year, alongside rigorous cost and capital expenditure management," Bastian stated. This prudent approach has been met with investor confidence, as evidenced by a 3.12% rise in Delta's shares during premarket trading.