1Q25 Revenue: $14.04B, +2.1% YoY, beat estimates by $580M
1Q25 Non-GAAP EPS: $0.46, beat estimates by $0.07
2Q25 Guidance: Expect total revenue to be between -2% to 2% YoY and profit of $1.70 to $2.30 a share compared to analysts’ average estimate of $2.30
FY25 Guidance: Expect earnings in excess of $7.35 per share, above expectations of $7.22 per share
Comment: Delta Air Lines reported first-quarter results that exceeded analyst expectations, with adjusted EPS of US$0.46 and revenue of US$14.04bn. However, the airline withheld an update on its 2025 financial forecast and issued a softer profit outlook for the current quarter, citing a slowdown in travel demand amid rising economic uncertainty driven by broad U.S. tariffs. In response, Delta plans to defer tariff-affected aircraft deliveries, cut planned capacity growth, and retire older aircraft to preserve margins and manage costs. While domestic and main cabin bookings have weakened, international and premium travel remain resilient. For Q2, Delta expects revenue to range from 2% lower to 2% higher YoY, with projected earnings between US$1.70 and US$2.30 per share, below the analyst consensus of US$2.30 at the midpoint. Looking ahead, Delta is taking a cautious, disciplined approach, focusing on cost efficiency and capacity management. Although the temporary pause on U.S. tariffs offers short-term relief, ongoing uncertainty may continue to weigh on consumer confidence and spending. 2Q25recommended trading range: $38 to $50. Neutral Outlook.
