“In the June quarter, Delta delivered record revenue on a 13 percent operating margin, generating $1.8 billion in pre-tax profit and leading network peers across key operational metrics. This strong performance is a direct reflection of the outstanding contributions of our people, who continue to set the bar for industry performance,” said Ed Bastian, Chief Executive Officer, Delta Air Lines.
“As we look to the second half of our centennial year, we remain focused on executing our strategic priorities and managing the levers within our control to deliver strong earnings and cash flow. Reflecting our confidence in the business, we are restoring financial guidance with an expectation for earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion, consistent with our long-term free cash flow targets.”
June Quarter 2025 GAAP Financial Results
- Operating revenue of $16.6 billion
- Operating income of $2.1 billion with an operating margin of 12.6 percent
- Pre-tax income of $2.6 billion with a pre-tax margin of 15.5 percent
- Earnings per share of $3.27
- Operating cash flow of $1.9 billion
- Payments on debt and finance lease obligations of $2.9 billion
- Total debt and finance lease obligations of $15.1 billion at quarter end
June Quarter 2025 Non-GAAP Financial Results
- Operating revenue of $15.5 billion
- Operating income of $2.0 billion with an operating margin of 13.2 percent
- Pre-tax income of $1.8 billion with a pre-tax margin of 11.6 percent
- Earnings per share of $2.10
- Operating cash flow of $1.8 billion
Revenue Environment and Outlook
“Delta generated record June quarter revenue of $15.5 billion, approximately 1 percent higher than prior year. Through the quarter, demand trends stabilized at levels that are flat to last year and we continued to see resilience in our diverse, high-margin revenue streams. The team did a great job leveraging Delta’s structural advantages to optimize performance in this environment,” said Glen Hauenstein, President, Delta Air Lines.
“For the September quarter, we expect total revenue to be flat to up 4 percent compared to the prior year, with unit revenue trends expected to improve through the second half of the year as we continue to adjust capacity and the industry further rationalizes supply.”
- Record quarterly revenue: Delta’s total revenue was a record $15.5 billion, approximately 1 percent higher than the June quarter of 2024 on 4 percent capacity growth. Adjusted total unit revenue (TRASM) was down 3 percent compared to prior year, consistent with expectations.
- Diversified revenue streams remain resilient: Diverse, high margin revenue streams contributed 59 percent of total revenue, underpinning Delta’s differentiated business model. Premium revenue continued to outpace main cabin, growing 5 percent on a year-over-year basis. Loyalty revenue was up 8 percent, driven by co-brand spend growth and card acquisitions. American Express remuneration was $2 billion, up 10 percent year-over-year. Cargo and MRO revenue grew 7 percent and 29 percent, respectively.
- International performed well through peak summer period: International revenue grew 2 percent during the quarter. Continued restoration of the Transpacific network supported by double-digit capacity growth in the region drove record Pacific revenue, up 11 percent compared to the second quarter of 2024. Strong demand for Transatlantic travel continued as Delta expanded service to European destinations for the peak summer period with revenue growing 2 percent above record 2024 levels.
- Corporate demand environment remains steady: Corporate sales in the June quarter were up low-single digits over the prior year, led by Domestic.
Cost Performance and Outlook
“Cost execution continues to be an important focus across the enterprise. June quarter non-fuel unit cost growth of 2.7 percent was similar to the March quarter and in line with expectations,” said Dan Janki, Delta’s Chief Financial Officer. “We expect the September quarter will be our best non-fuel unit cost performance of the year, with non-fuel unit costs flat to down compared to 2024. For the full year, we remain on track to deliver non-fuel unit cost growth in the low-single digits year-over-year, consistent with our long-term target.”
June Quarter 2025 Cost Performance
- Operating expense of $14.5 billion and adjusted operating expense of $13.5 billion
- Adjusted non-fuel costs of $10.5 billion
- Non-fuel CASM was 13.49¢, an increase of 2.7 percent year-over-year
- Adjusted fuel expense of $2.5 billion was down 11 percent year-over-year
- Adjusted fuel price of $2.26 per gallon decreased 14 percent year-over-year with a refinery loss of 1¢ per gallon
Balance Sheet, Cash and Liquidity
“During the first half of the year, we generated free cash flow of $2 billion, supporting our full year expectation for $3 to $4 billion of free cash flow,” Janki said. “With strong cash generation, we are well-positioned to deliver on our capital allocation priorities as we reinvest in the business, pay down $3 billion of debt this year, and return cash to shareholders, including a 25 percent increase to our quarterly dividend beginning in the September quarter.”
- Adjusted net debt of $16.3 billion at June quarter end, a reduction of $1.7 billion from the end of 2024
- Payments on debt and finance lease obligations for the June quarter of $2.9 billion
- Weighted average interest rate of 4.6 percent with 95 percent fixed rate debt and 5 percent variable rate debt
- Adjusted operating cash flow in the June quarter of $1.8 billion, and with gross capital expenditures of $1.2 billion, free cash flow was $733 million
- Air Traffic Liability ended the quarter at $8.9 billion
- Liquidity of $6.4 billion at quarter-end, including $3.1 billion in undrawn revolver capacity
