Delta Air Lines reported its 1st quarter financial results, which were essentially flat with 2024. EPS was $.46, surpassing expectations of $.39. Operating revenues reached $14.04 billion, exceeding market expectations of $13.89 billion. Operating income was $569 million and a margin of 4%. Operating cash flow was $2.4 billion, and pre-tax income of $320 million represented a pre-tax margin of 2.3%.Â
Delta CEO Ed Bastien stated “while the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat and is expected to lead the industry.” But the economic uncertainty from global tariffs, combined with a downturn in future bookings, has resulted in the company removing full-year guidance.Â
In a written statement, the company stated “given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook.” The company plans to reduce planned growth in capacity in the second half of 2025 to 2024 capacity levels, as it has removed the expected 4% growth from its plans.
Outlook for the second quarter is below initial Wall Street estimates, with Delta expecting EPS between $1.70 and $2.30, below the consensus estimate of $2.41. International and premium revenue streams have continued to be strong, but domestic main cabin demand is showing signs of weakening.
Delta also announced that it will not pay tariffs for aircraft from Airbus, and will be deferring delivery for aircraft subject to tariffs. While Delta has orders for the A220 and A321 that are assembled in the US, it also has orders for A330 and A350 models assembled in France. While tariffs for the EU have been deferred for 90 days, the general 10% tariff still applies. As a result, it appears that Delta will defer deliveries planned for the 2nd quarter or longer, depending on what happens with tariffs.
The Bottom Line
The Trump tariffs are having an effect on travel as the economy slows. While Delta’s first quarter remained positive, the outlook for the remainder of the year has moved lower to the point that Delta is unwilling to provide a full year estimate. That reflects the economic uncertainty that is impacting companies as on and off tariffs and moving deadlines result in an inability to accurately plan their future.
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