Delta Air Lines Reports Better than Expected Results for March Quarter

Delta Air Lines (NYSE: DAL) reported its financial results for the March quarter of 2025, showcasing a blend of solid revenue growth and cost management. The company achieved an operating revenue of $14.0 billion, representing a 2% increase compared to the previous year. This growth was supported by diverse revenue streams, which accounted for nearly 60% of the total revenue. Despite challenging weather conditions at the start of the year, Delta managed to operate efficiently, leading to a 2.6% increase in non-fuel unit costs over the prior year.

Operating income for the quarter stood at $569 million, with an operating margin of 4.0%. On a non-GAAP basis, operating income was slightly higher at $591 million, with a margin of 4.6%. The company also reported a pre-tax income of $320 million and net income of $240 million, resulting in earnings per share (EPS) of $0.37. Adjusted EPS, which excludes certain items, came in at $0.46.

Delta Beats EPS, Revenue Expectations with March Quarter Earnings

Analysts had anticipated an EPS of $0.44, and the actual EPS of $0.46 exceeded this target. Revenue expectations were set at $13.11 billion, and Delta exceeded this with a reported revenue of $14.0 billion. The growth was largely driven by premium and loyalty revenue streams, which saw significant increases of 7% and 13%, respectively. Despite these gains, the company faced challenges in the domestic and main cabin segments, which experienced some softness during the quarter.

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Delta Expects EPS in the $1.70 to $2.30 Range for June Quarter

Looking ahead, Delta has provided guidance for the June quarter, projecting an operating margin of 11% to 14% and EPS in the range of $1.70 to $2.30. The company expects total revenue for the June quarter to vary between a 2% decrease and a 2% increase compared to the previous year. This outlook reflects the ongoing economic uncertainty and the company’s strategic adjustments to align capacity with demand.

Delta is taking steps to manage costs and capital expenditures, particularly by reducing planned capacity growth in the latter half of the year to match last year’s levels. This approach aims to protect margins and cash flow in a slower growth environment. Despite the lack of economic clarity, Delta remains confident in its ability to deliver solid profitability and free cash flow for the year, supported by a decline in fuel prices and strategic initiatives.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.