Delta Air Lines Beats Q1 Earnings Expectations but Withdraws 2025 Forecast Amid Economic Uncertainty
Delta Air Lines reported financial results for the first quarter of the year that exceeded analysts’ expectations on earnings per share, but the airline has withdrawn its 2025 financial guidance, citing “lack of economic clarity” and a stagnant growth environment.
Despite a quarter that unfolded differently than initially projected, Delta delivered “solid profitability” in line with the prior year. The company posted GAAP operating revenue of $14 billion and adjusted earnings per share of $0.46, topping analyst estimates. Adjusted operating revenue rose to $13 billion, up 3.3% year-over-year, driven by strength in premium products, loyalty programs, and international travel.
Still, the dominant tone was caution about the future. “With broad economic uncertainty around global trade, growth has mostly stalled,” said Delta CEO Ed Bastian. “Given the lack of economic clarity, it’s premature at this time to provide an updated full-year outlook.” Concerns over global trade dynamics and potential tariffs led Delta to suspend its prior 2025 guidance, which had pointed to strong earnings growth.
In response to this “slower growth environment”, Delta is taking steps to protect margins and cash flow, including plans to flatten capacity growth in the second half of the year, alongside active cost and capital expenditure management.
For the second quarter of 2025 (June), Delta forecasts profit between $1.5 billion and $2.0 billion, with an operating margin of 11% to 14% and earnings per share ranging from $1.70 to $2.30. Total revenue is projected to range from a 2% decline to a 2% increase compared to the same period last year.
Although Delta has pulled its annual guidance, Bastian expressed confidence in the airline’s position, citing the company’s strength, lower fuel prices, and the continued resilience of premium travel demand as key factors supporting strong profitability and free cash flow generation in 2025.
Delta’s report serves as one of the first major indicators of how global trade tensions and economic volatility are shaping consumer and business sentiment in the aviation sector.
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