[Delta Air Lines June Quarter 2025 Financial Results](index=1&type=section&id=Delta%20Air%20Lines%20Announces%20June%20Quarter%202025%20Financial%20Results) [June Quarter 2025 Financial Highlights](index=1&type=section&id=June%20Quarter%202025%20Financial%20Highlights) Delta delivered record revenue for the June quarter, with adjusted operating revenue up 1% year-over-year to $15.5 billion, driven by resilient high-margin streams, while adjusted pre-tax income and EPS declined 10% and 11% respectively, and adjusted operating cash flow was $1.8 billion June Quarter 2025 Key Financial Metrics (Adjusted, Non-GAAP) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $15.5 billion | $15.4 billion | +1% | | Operating Income | $2.0 billion | $2.3 billion | -10% | | Operating Margin | 13.2% | 14.7% | -1.5 percentage points | | Pre-tax Income | $1.8 billion | $2.0 billion | -10% | | Diluted EPS | $2.10 | $2.36 | -11% | | Operating Cash Flow | $1.8 billion | $2.5 billion | -25% | | Free Cash Flow | $733 million | $1,274 million | -42% | June Quarter 2025 Key Financial Metrics (GAAP) | Metric | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Operating Revenue | $16.6 billion | $16.7 billion | 0% | | Operating Income | $2.1 billion | $2.3 billion | -7% | | Net Income | $2.1 billion | $1.3 billion | +63% | | Diluted EPS | $3.27 | $2.01 | +63% | - The strong performance was attributed to the outstanding contributions of Delta's employees, who continue to set a high bar for industry performance[3](index=3&type=chunk) [Full Year and Q3 2025 Guidance](index=1&type=section&id=Financial%20Guidance) Delta restored its full-year 2025 guidance, projecting EPS between $5.25 and $6.25 and free cash flow of $3 to $4 billion, while Q3 revenue is expected to be flat to up 4% year-over-year with a 9-11% operating margin, alongside a 25% dividend increase Financial Guidance | Metric | Full Year 2025 | Q3 2025 | | :--- | :--- | :--- | | Earnings Per Share | $5.25 - $6.25 | $1.25 - $1.75 | | Free Cash Flow | $3 billion - $4 billion | N/A | | Total Revenue YoY | N/A | 0% - 4% | | Operating Margin | N/A | 9% - 11% | | Gross Leverage | < 2.5x | N/A | - Reflecting confidence in the business, the company restored its full-year financial guidance, consistent with long-term free cash flow targets[4](index=4&type=chunk) - A **25% increase** to the dividend payment will begin in the September quarter[2](index=2&type=chunk) [Revenue Environment and Outlook](index=2&type=section&id=Revenue%20Environment%20and%20Outlook) Delta achieved record June quarter adjusted revenue of $15.5 billion, up 1% year-over-year, driven by resilient high-margin streams like Premium products and Loyalty, which contributed 59% of total revenue, with international revenue growing 2% - Diverse, high-margin revenue streams (Premium, Loyalty, Cargo, MRO) contributed **59% of total revenue**[9](index=9&type=chunk) - Premium product revenue grew **5% year-over-year**, outpacing main cabin performance[9](index=9&type=chunk) - Loyalty revenue increased by **8% year-over-year**, with American Express remuneration reaching **$2 billion**, a **10% increase**[9](index=9&type=chunk) - International revenue grew **2%**, with Pacific revenue up **11%** and Transatlantic revenue up **2%** over record 2024 levels[9](index=9&type=chunk) [Cost Performance and Outlook](index=2&type=section&id=Cost%20Performance%20and%20Outlook) Delta maintained cost discipline with a 2.7% year-over-year increase in non-fuel unit cost (CASM-Ex), while adjusted fuel expense decreased 11% to $2.5 billion due to lower fuel prices, with the company anticipating its best non-fuel unit cost performance in Q3 - June quarter non-fuel unit cost (CASM-Ex) increased **2.7% year-over-year** to **13.49 cents**[8](index=8&type=chunk)[11](index=11&type=chunk) - The company expects Q3 non-fuel unit costs to be flat to down compared to 2024, marking the best performance of the year[8](index=8&type=chunk) Q2 2025 Fuel Performance | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Adjusted Fuel Expense | $2.5 billion | -11% | | Adjusted Fuel Price per Gallon | $2.26 | -14% | [Balance Sheet, Cash and Liquidity](index=3&type=section&id=Balance%20Sheet%2C%20Cash%20and%20Liquidity) Delta strengthened its balance sheet by generating $2 billion in free cash flow in the first half of 2025 and reducing adjusted net debt by $1.7 billion since year-end 2024, ending the quarter with $6.4 billion in liquidity - Generated **$733 million** in free cash flow in Q2 and **$2 billion** in the first half of 2025[10](index=10&type=chunk)[11](index=11&type=chunk) - Reduced adjusted net debt by **$1.7 billion** from the end of 2024, ending the quarter at **$16.3 billion**[11](index=11&type=chunk) - Ended the quarter with **$6.4 billion** in liquidity, including **$3.1 billion** in undrawn revolver capacity[11](index=11&type=chunk) [June Quarter 2025 Highlights](index=4&type=section&id=June%20Quarter%202025%20Highlights) Delta achieved top-tier operational reliability, expanded global partnerships, enhanced its network, invested in employees with a 4% pay raise, improved customer experience through new lounges and app updates, and advanced sustainability goals with significant fuel savings - **Operations:** Operated the most on-time airline in the quarter, took delivery of **10 new aircraft**, and announced strengthened partnerships with WestJet and plans with IndiGo, Air France-KLM, and Virgin Atlantic[15](index=15&type=chunk) - **People & Culture:** Provided a **4% base pay increase** for eligible employees and was named **No. 3** in Fortune's ReturnOnLeadership® ranking[15](index=15&type=chunk) - **Customer Experience:** Launched Fly Delta app 7.0, opened new Delta One and Sky Club lounges in SEA and ATL, and expanded partnerships with Uber and Missoni[15](index=15&type=chunk) - **Sustainability:** Achieved **1% fuel burn savings** from operational improvements, saving **45 million gallons** of jet fuel[15](index=15&type=chunk) [Consolidated Financial Statements (Unaudited)](index=8&type=section&id=Consolidated%20Financial%20Statements%20(Unaudited)) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) For Q2 2025, total operating revenue was flat year-over-year at $16.6 billion, while operating expense increased 1% to $14.5 billion, resulting in a 7% decrease in operating income to $2.1 billion, with net income up 63% to $2.1 billion due to a $735 million gain on investments Q2 2025 vs Q2 2024 Statement of Operations (GAAP) | (in millions) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Total Operating Revenue | $16,648 million | $16,658 million | 0% | | Total Operating Expense | $14,546 million | $14,391 million | +1% | | Operating Income | $2,102 million | $2,267 million | -7% | | Net Income | $2,130 million | $1,305 million | +63% | - A gain on investments of **$735 million** in Q2 2025, compared to a loss of **$196 million** in Q2 2024, was a primary driver of the significant increase in Net Income[29](index=29&type=chunk) [Revenue Breakdown](index=9&type=section&id=Revenue%20Breakdown) Total passenger revenue for Q2 2025 was flat year-over-year, driven by 5% growth in premium products and 12% increase in loyalty travel awards, offsetting a 5% decline in main cabin ticket revenue, with Pacific revenue growing 11% geographically Q2 2025 Passenger Revenue by Type (in millions) | Category | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Ticket - Main cabin | $6,347 million | $6,716 million | -5% | | Ticket - Premium products | $5,899 million | $5,633 million | +5% | | Loyalty travel awards | $1,092 million | $975 million | +12% | Q2 2025 Revenue by Geography (vs Q2 2024) | Region | Revenue Change | Unit Revenue Change | | :--- | :--- | :--- | | Domestic | -1% | -5% | | Atlantic | +2% | -2% | | Latin America | -1% | 0% | | Pacific | +11% | -1% | [Statistical Summary](index=10&type=section&id=Statistical%20Summary) In Q2 2025, Delta's capacity grew 4% year-over-year, outpacing 2% traffic growth, leading to a 1.8 percentage point decrease in passenger load factor to 86%, while TRASM declined 4% to 21.44 cents and CASM decreased 3% to 18.73 cents Q2 2025 Key Operating Statistics (vs Q2 2024) | Metric | Q2 2025 | Change | | :--- | :--- | :--- | | Available Seat Miles (millions) | 77,645 million | +4% | | Revenue Passenger Miles (millions) | 66,417 million | +2% | | Passenger Load Factor | 86% | -1.8 percentage points | | TRASM (cents) | 21.44 cents | -4% | | CASM (cents) | 18.73 cents | -3% | | CASM-Ex (cents) | 13.49 cents | +2.7% | | Avg. Fuel Price per Gallon | $2.21 | -16% | [Consolidated Statements of Cash Flows](index=11&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q2 2025, net cash from operating activities was $1.9 billion, a decrease from $2.5 billion in the prior-year quarter, while net cash used in investing activities was $1.2 billion and financing activities used $1.1 billion, resulting in a net decrease in cash of $412 million Q2 2025 Cash Flow Summary (in millions) | Cash Flow Activity | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,856 million | $2,450 million | | Net cash used in investing activities | $(1,199) million | $(809) million | | Net cash used in financing activities | $(1,069) million | $(1,512) million | | **Net (Decrease)/Increase in Cash** | **$(412) million** | **$129 million** | [Consolidated Balance Sheets](index=12&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, Delta's total assets were $78.4 billion, up from $75.4 billion at year-end 2024, while total liabilities were $60.9 billion, with a significant increase in air traffic liability to $8.9 billion, and stockholders' equity increased to $17.4 billion Balance Sheet Summary (in millions) | Category | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Current Assets | $10,982 million | $9,844 million | | Total Assets | $78,395 million | $75,372 million | | Total Current Liabilities | $28,554 million | $26,670 million | | Total Liabilities | $60,955 million | $60,079 million | | Total Stockholders' Equity | $17,440 million | $15,293 million | - Air traffic liability, a measure of tickets sold for future travel, increased to **$8.9 billion** from **$7.1 billion** at the end of 2024[44](index=44&type=chunk) [Note A: Non-GAAP Financial Measures](index=13&type=section&id=Note%20A%3A%20Non-GAAP%20Financial%20Measures) [Reconciliation of Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Delta uses non-GAAP measures to provide a more meaningful comparison of core operational performance by excluding items like third-party refinery sales and MTM adjustments, with key adjusted Q2 2025 metrics including a 13.2% operating margin, $1.8 billion pre-tax income, $2.10 diluted EPS, and $733 million free cash flow - The primary adjustments from GAAP to non-GAAP figures include removing the impact of third-party refinery sales, mark-to-market (MTM) adjustments on investments and hedges, and losses on debt extinguishment[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) Q2 2025 GAAP to Non-GAAP Reconciliation Highlights | Metric | GAAP | Adjusted (Non-GAAP) | | :--- | :--- | :--- | | Operating Margin | 12.6% | 13.2% | | Pre-Tax Income | $2,574 million | $1,805 million | | Diluted EPS | $3.27 | $2.10 | | CASM (cents) | 18.73 cents | N/A | | CASM-Ex (cents) | N/A | 13.49 cents | - Adjusted net debt was calculated at **$16.3 billion** as of June 30, 2025, a reduction of **$1.7 billion** from the end of 2024[63](index=63&type=chunk) - Free cash flow for Q2 2025 was **$733 million**, derived from **$1.9 billion** in operating cash flow adjusted for investing activities, pension contributions, and other items[68](index=68&type=chunk)

Financial Performance - Delta Air Lines reported record revenue of $15.5 billion for the June quarter, approximately 1 percent higher than the previous year, with a 13 percent operating margin and $1.8 billion in pre-tax profit [2][4][8] - The company expects earnings per share for the September quarter to be between $1.25 and $1.75, with an operating margin of 9 to 11 percent [3][4] - Full year guidance has been restored, with expected earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion [3][10] Revenue Streams - Diverse, high-margin revenue streams contributed 59 percent of total revenue, with premium revenue growing 5 percent year-over-year and loyalty revenue increasing by 8 percent [8][10] - International revenue grew by 2 percent during the quarter, supported by strong demand for Transatlantic travel and record Pacific revenue, which was up 11 percent compared to the second quarter of 2024 [8][10] Cost Management - Non-fuel unit cost growth for the June quarter was 2.7 percent, consistent with expectations, and the company anticipates the September quarter will show the best non-fuel unit cost performance of the year [5][9] - Adjusted fuel expense decreased by 11 percent year-over-year, with an average fuel price of $2.26 per gallon, down 14 percent from the previous year [14][15] Cash Flow and Debt - Delta generated free cash flow of $2 billion in the first half of the year, supporting the full year expectation of $3 to $4 billion [10][29] - Total debt and finance lease obligations were reported at $15.1 billion at the end of the quarter, a reduction of $2.9 billion from the previous year [7][15] Dividend and Shareholder Returns - The company announced a 25 percent increase in its quarterly dividend, effective from the September quarter [3][10] - Delta's commitment to capital allocation includes reinvesting in the business, paying down $3 billion of debt this year, and returning cash to shareholders [10][15]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, publications, and personal analysis intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to consider their financial situation and needs before making decisions based on the information provided [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to perform their own research and understand the risks involved before investing in any financial instruments [1].

Core Viewpoint - Delta Air Lines Inc is expected to report a revenue of $16.21 billion and earnings of $2.07 per share for the second quarter, reflecting a 5.3% year-over-year increase driven by international and premium travel sectors [1] Financial Performance - The company has shown a turnaround in earnings this year, with the stock rising after the last two earnings reports, including a notable 23.4% increase following the April report [2] - The options market is anticipating a larger earnings swing of 9.5%, compared to the average 6.4% move over the past two years [2] Stock Movement - A successful earnings report could push Delta Air Lines' stock above the recent consolidation level around $52 and the 120-day moving average, although the stock is down 16.5% year to date [3] Options Trading Sentiment - The 10-day call/put volume ratio stands at 2.73, indicating that options traders are more optimistic than usual, with this ratio being higher than 73% of readings from the past year [4] - Delta Air Lines has historically outperformed options traders' volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) of 99 out of 100 [4]

A Delta flight from Atlanta to Fort Lauderdale was forced to make an emergency landing in Fort Myers, Florida, on Monday when a passenger’s personal device caught fire in the aircraft cabin, a Delta spokesperson confirmed to Forbes. (Photo: Getty Images)https://t.co/kHr488acjV https://t.co/yKlRUiIS9U ...

Safety Concerns - Lithium battery incidents are a growing concern, with at least 35 incidents reported this year [1] - A fire forced a Delta emergency landing, highlighting the potential dangers associated with lithium batteries [1]

Safety Concerns - Lithium battery incidents are a growing concern, with at least 35 incidents reported this year [1] Aviation Industry Impact - A Delta emergency landing was caused by a fire, highlighting the potential dangers of lithium batteries on aircraft [1]

Core Viewpoint - Delta Air Lines is expected to report its second-quarter 2025 results on July 10, with earnings anticipated to be lower than the previous year despite a slight upward revision in estimates [1][2]. Group 1: Earnings Performance - The Zacks Consensus Estimate for Delta's Q2 2025 earnings is $1.99 per share, reflecting a 15.7% decline from the same quarter last year [2]. - Delta has outperformed the Zacks Consensus Estimate in two of the last four quarters, with an average beat of 3.96% [1]. Group 2: Revenue Expectations - The revenue estimate for Q2 2025 is $16.18 billion, indicating a 2.89% year-over-year decline [5]. - Delta has provided a cautious outlook for Q2 2025, projecting adjusted revenues to either decline by 2% or increase by up to 2% year-over-year [5]. Group 3: Influencing Factors - Geopolitical uncertainty, tariff pressures, and persistent inflation are expected to negatively impact Delta's operations and travel demand, particularly in international and business segments [3]. - Rising labor costs are projected to increase by 13.2% compared to Q2 2024, which may pressure margins and revenue [4]. - Low oil prices, which decreased by 6% in the April-June 2025 period, could help offset some cost pressures for Delta [6]. Group 4: Earnings Prediction Model - Delta has an Earnings ESP of +0.26% and a Zacks Rank of 3, suggesting a potential earnings beat this quarter [7].

Market Overview - The stock market experienced a significant week with major events including the signing of a historic tax cut bill on July 4th and the release of monthly and weekly jobs reports [1][2] - Major indexes closed at weekly highs, reaching levels not seen since late February, with the Dow up 17%, S&P 500 up 20%, Russell 2000 up 21%, and Nasdaq up 27% from April 9th lows [2][4] Trade Policies - The deadline for U.S. trading partners to negotiate new trade policies has been extended from July 9th to August 1st, raising concerns about potential tariffs if no agreement is reached [2][3] - The situation indicates a potentially contentious trade issue, with significant tariffs set to go into effect if negotiations fail [3] Economic Indicators - The Federal Open Market Committee (FOMC) has maintained interest rates at 4.25-4.50% throughout 2025, with no major economic reports expected this week [6] - Upcoming economic reports include the Consumer Price Index (CPI), Producer Price Index (PPI), and monthly Retail Sales figures, which are anticipated to provide insights into economic conditions [7] Earnings Reports - Delta Air Lines is set to report Q2 earnings, marking the unofficial start of the Q2 earnings season, with major banks like JPMorgan, Citigroup, and Wells Fargo reporting the following week [8]

Group 1 - Delta Air Lines has been rated a Hold twice, with the most recent rating following their Q4 2024 results [1] - Q2 results are expected to be released on July 10th, and the analyst maintains a cautious outlook [1] - The analysis is based on value investing principles, focusing on a long-term investment perspective [1] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2] - The article reflects the analyst's personal opinions and is not influenced by compensation from any company [2] - There is no business relationship between the analyst and the companies mentioned in the article [2]