Delta Air Lines beat estimates on earnings per share and revenue last quarter, as United States travel demand shows signs of stabilising.
The company’s non-GAAP earnings per share were US$2.10, above LSEG estimates of $2.05. Revenue was a record $15.51 billion, besting estimates of $15.48.
“Delta generated record June quarter revenue of $15.5 billion, approximately 1% higher than [the] prior year. Through the quarter, demand trends stabilised at levels that are flat [on] last year and we continued to see resilience in our diverse, high-margin revenue streams,” said Delta president Glen Hauenstein.
Delta’s adjusted net income was US$1.37 billion, down 10% year-over-year, while its GAAP net income grew by 63% to $2.13 billion.
Adjusted operating income fell by 10% to US$2.05 billion. Free cash flow dropped by 42% to $733 million.
International revenue grew by 2%, with Pacific revenue rising by a record 11%. European revenue also increased by 2%, despite arrivals in the U.S. from France and Germany falling in the year to April.
The U.S. has seen a major slump in travel demand amid tariff pressures, with air traffic declining for the first time since the covid-19 pandemic from March to June. Prices for airline tickets also fell during the April to May period.
Delta’s fuel expenses declined 11% to US$2.51 billion, partly due to lowering fuel prices. Non-fuel costs increased by 2.7% to $10.48 billion.
“June quarter non-fuel unit cost growth of 2.7 percent was similar to the March quarter and in line with expectations,” said Delta chief financial officer Dan Janki. “We expect the September quarter [to] be our best non-fuel unit cost performance of the year, with non-fuel unit costs flat to down compared to 2024.”
Delta projects that revenue in the September quarter will grow by 0-4% year-over-year, with non-GAAP earnings per share of US$1.25-1.75. Its full-year guidance expects earnings per share of $5.25-6.25, below January guidance of at least $7.35 per share.
The company’s share price rose by 12% after the earnings release, closing at US$56.78. Its market capitalisation is $37.07 billion.
