Delta reports 1Q25 results, CEO says growth at carrier has “largely stalled”  

Delta Air Lines has reported its financial results for the first quarter of 2025 (1Q25) and has updated investors on the carrier’s outlook for the upcoming second quarter (April to June 2025). The results, published on April 9, 2025, show that the Atlanta-based carrier is suffering from a drop in US domestic traffic, driven in part by the furor surrounding the Trump administration’s tariff impositions of recent weeks.

“Growth has largely stalled,” Delta said Wednesday, as it became the first carrier to report first-quarter earnings for 2025. It cited “broad economic uncertainty around global trade” as the cause for the slowdown in the numbers of passengers taking the air. “Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook,” Delta said in a prepared statement, noting that it “will reduce planned capacity growth in the second half of [2025] to be the same as in 2024.

Delta’s CEO Ed Bastian said in an interview with US broadcaster CNBC that in President Trump’s first term, the administration had been “quite helpful” in addressing the problem caused by Mideast carriers Emirates, Etihad, and Qatar Airways in US markets. However, with the US on the verge of a predicted economic recession, the carrier is “taking second-half growth out of our plan. We had expected to grow 4%,” he said.

MKPhoto12 / ShutterstockReferring to the ongoing international tit-for-tat over trade tariffs, Bastian said, “Trying to do it all at the same time has created chaos. Everything is a stall. There’s been a freeze. Our economy’s going to continue to lose steam.” For Delta, the biggest impact has been in the domestic market, where the carrier has seen its largest drop in passenger numbers over the first three months of 2025.  

For 1Q25, the airline reported an operating revenue figure of $14 billion, an operating income of $569 million, and an operating margin of 4%. Pre-tax income rounded out at $320 million with a pre-tax margin of 2.3% overall. The airline’s operating cash flow ended the quarter at $2.4 billion.

“While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to [2024] 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 Bastian.

“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,” he added. “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.”

Clement AllongLooking ahead with caution

Looking ahead, Delta’s 2Q25 revenue figure is expected to be between down 2% and up 2%. 2025 is playing out differently than we expected at the start of the year,” said President Glen Hauenstein. “As a result, we are adapting to current conditions while staying true to our long-term strategy.”

“Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook,” added Bastian. 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.”

An airline statement advised that “Given the ongoing economic uncertainty across world markets, Delta elected not to reaffirm its full-year 2025 financial guidance and will provide an update later in the year as visibility improves.”

RELATED

Emirates boss opines on world economic upheaval and effect on airline industry   

. The post Delta reports 1Q25 results, CEO says growth at carrier has “largely stalled”   appeared first on AeroTime.

Go to Source