Delta Air Lines soared 23.4% during Wednesday's regular trade after the company reported stronger-than-expected earnings for the March quarter, while declining to reaffirm its full-year 2025 outlook due to ongoing economic and trade uncertainty.
For the first quarter, Delta posted adjusted earnings per share (EPS) of $0.46, surpassing market expectations of $0.38. Revenue came in at US$12.98 billion, in line with expectations.
Chief Executive Officer Ed Bastian commented, “While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to prior year and is expected to lead the industry."
“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.
"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.”
Despite a strong Q1 showing, Delta opted not to reaffirm its full-year 2025 guidance, citing a lack of economic clarity.
However, the airline did provide second-quarter guidance, forecasting earnings per share between $1.70 and $2.30 and operating margins of 11% to 14%.
Delta also expects second-quarter total revenue growth to range from a 2% decline to a 2% gain.
Additionally, Delta projects non-fuel unit cost growth to remain aligned with its long-term targets, increasing in the low single digits during Q2.
“We expect June quarter profitability of $1.5 to $2 billion. Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook. 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,” Bastian said.
Delta is the first major U.S. airline to release quarterly results this season. Earnings reports from United Airlines, American Airlines, Southwest Airlines, and others are due later this month.
At the time of writing, Delta Air Lines (NYSE: DAL) stock was trading at US$44.24, easing 0.1% from Wednesday's close of $23.4. The stock reached a day low of $36.56 and a day high of $44.99. Delta Air Lines' market cap stands at US$28.6 billion.
