Delta(DAL) - 2025 Q1 - Quarterly Results

Financial Performance - Operating revenue for the March quarter 2025 was $14.0 billion, with a year-over-year increase of 2$13 billion, reflecting a 3.3% increase year-over-year, with premium revenue growing 7%[8][12]. - Total operating revenue for Q1 2025 was $14,040 million, a 2$13,748 million in Q1 2024[32]. - Passenger revenue increased by 3% to $11,480 million in Q1 2025, compared to$11,131 million in Q1 2024[34]. - Net income for Q1 2025 reached $240 million, significantly up from$37 million in Q1 2024[32]. - Operating income for Q1 2025 was $569 million, a decrease of 7$614 million in Q1 2024[32]. - The operating margin for the three months ended March 31, 2025, was 4.0%, down from 4.5% in the same period of 2024[52]. - Adjusted operating income was $591 million, compared to$640 million in the prior year, indicating a decrease of 7.6%[51]. Cost and Expenses - Non-fuel unit cost (CASM-Ex) increased by 2.6% year-over-year, reaching 14.44 cents[13]. - Total operating expense for Q1 2025 was $13,471 million, a 3$13,134 million in Q1 2024[32]. - Operating expenses for Q1 2025 were $13,471 million, an increase from$13,134 million in Q1 2024, reflecting a year-over-year increase of 2.6%[60]. - Non-fuel operating costs for Q1 2025 were $9,875 million, an increase from$9,227 million in Q1 2024, reflecting a year-over-year increase of 7%[60]. - Total fuel expense for Q1 2025 was $2,410 million, down from$2,598 million in Q1 2024, representing a decrease of 7%[62]. - Adjusted operating expenses for Q1 2025 were $12,388 million, compared to$11,923 million in Q1 2024, reflecting a year-over-year increase of 3.9%[61]. Cash Flow and Debt - Delta's operating cash flow for the quarter was $2.4 billion, with free cash flow of$1.3 billion[14]. - Adjusted net debt decreased to $16.9 billion, down$1.1 billion from the end of 2024[14]. - Cash, cash equivalents, and restricted cash equivalents at the end of the period totaled $3,941 million, down from$4,379 million at the end of the previous year[42]. - Debt and finance lease obligations decreased to $15,823 million in Q1 2025 from$16,194 million in Q4 2024[65]. - The company reported an adjusted net debt of $16,876 million, down from$17,980 million in Q4 2024, indicating a reduction of 6.2%[65]. - Free cash flow for Q1 2025 was $1,280 million, compared to$1,378 million in Q1 2024, showing a decline of 7.1%[70]. - Adjusted debt to EBITDAR ratio is 2.6x, indicating the company's leverage position[63]. Customer and Market Performance - Delta served over 200 million customers in 2024, achieving industry-leading customer service innovation and recognized as No. 1 in First/Business and Premium Economy Passenger Satisfaction by J.D. Power[23]. - Revenue passenger miles increased by 3% to 55,678 million in Q1 2025, compared to 54,207 million in Q1 2024[40]. - Delta's passenger load factor was 81.4% in Q1 2025, down from 82.7% in Q1 2024[40]. - The percentage of operating revenue related to premium products and diverse revenue streams was 59% for the three months ended March 31, 2025, compared to 57% in the previous year[57]. Fuel Costs - Delta's average fuel price per gallon decreased by 11% year-over-year to $2.45[13]. - Delta's average price per fuel gallon decreased by 11$2.47 in Q1 2025 from $2.79 in Q1 2024[40]. - Average fuel price per gallon increased to$2.79 in Q1 2025 from $2.47 in Q1 2024, marking an increase of 12.9$1.70 to $2.30[7]. - The company plans to reduce capacity growth in the second half of the year to flat year-over-year, aligning supply with demand[3].