Delta Air Lines reports slower growth in Q1 2025 due to economic uncertainty

Dan Janki, Delta's Chief Financial Officer, praised the airline's strong operational performance amid challenging weather conditions. He mentioned, “This was better than our initial expectation and a sequential improvement from the end of 2024.” Janki also detailed that as economic uncertainty persists, the airline is taking steps to control costs, with expectations of non-fuel cost growth remaining within a low-single-digit range for the second quarter and the rest of the year.

Revenue per passenger-mile grew by 3%, and adjusted total revenue per available seat mile was down by 1% compared to the same period in 2024. Main cabin sales accounted for $5.3 billion of the $11.4 billion passenger revenue, with premium products contributing $4.7 billion. Loyalty travel awards generated $940 million, and travel-related services added $472 million.

Domestic flights generated $8.1 billion in revenue, followed by $1.37 billion from transatlantic routes and $1.33 billion from Latin American flights. Revenue in all regions increased, although unit revenue improved only on transatlantic and transpacific flights due to a 3% reduction in transatlantic capacity.

CEO Ed Bastian commented on the results, stating, "with broad economic uncertainty around global trade, growth has largely stalled." He added that Delta plans to reduce capacity growth in the second half of the year, maintain cost control, and manage capital expenditures. For Q2, Delta predicts revenue to either decrease or increase by 2% YoY, with an operating margin between 11% and 14%. Earnings per share are expected to be between $1.70 and $2.30.

Bastian also remarked on the current economic situation being different than anticipated at the start of the year. Despite earlier positive sentiments about the Trump presidency, Delta is now adjusting to unexpected conditions to maintain its strategic objectives.