Delta Air Lines (NYSE: $DAL) is a leading global airline that serves over 275 destinations on six continents. On April 9, 2025, Delta Air Lines released its first quarter fiscal 2025 results, before markets opened. Here is a deep dive into the results.
Delta Air Lines Q125 Results
For the first quarter of fiscal 2025, Delta Air Lines reported revenue of $14.04 billion, beating estimates of $13.88 billion and marking a 2.1% YoY increase. It reported a GAAP EPS of $0.37, below estimates of $0.40. Adjusted EPS came in at $0.46, falling below estimates of $0.38, while adjusted revenue came in at $12.98, which is in line with estimates.
It reported an adjusted EBITDA of $1.18 billion, below estimates of $1.30, and an adjusted EBITDA margin of 8.45. The airline reported an operating income of $569 million, for an operating margin of 4%, and a pre-tax income of $320 million, for a pre-tax margin of 2.3%.
Its operating cash flow for Q1 was $2.3 billion, while payments on debt and leases came in at $531 million. At the end of the quarter, it had $15.8 billion in total debt, as well as lease obligations. At the end of Q1, it had $6.8 billion in liquidity, which includes $3.1 billion in undrawn revolver capacity.
Q2 Guidance
In the second quarter of fiscal 2025, Delta Air Lines expects revenue of $16.66 billion at the midpoint, which is in line with estimates. It expects a GAAP EPS of $1.70 to $2.30, below analysts’ estimates of $2.23 at the $2 midpoint.
It expects an operating margin of 4.1%, in line with last year, and a free cash flow margin of 8.6%, the same as last year. Delta Air Lines expects revenue passenger miles to grow 1.47 billion YoY to 55.68 billion in Q2.
Market Performance
Following the mixed Q1 results, Delta Air Lines shares rose 5.73% in early morning trading to $37.94 per share as of 9:31 AM EDT. However, the shares are still down 38.55% YTD and 27.07% in the past six months. Over the past 12 months, the shares have dipped 21.43%.
The current price of DAL stock is below both the 50 and 200-day moving averages of $55.14, and $53.26, respectively. DAL shares have performed in line with the Airlines industry, which has dipped 39.48% YTD, 21.67% in the past six months, and 16.03% in the past 12 months.
Analysts are upbeat about the future of DAL shares, giving them an overall strong buy rating. They forecast an average price of $62.71, which represents a 64.68% upside based on the most recent price. The analysts give DAL shares a wide range of forecasts, with a high of $100 and a low of $42.
Is Delta Air Lines A Buy?
Commenting on the earnings results, CEO Ed Bastian noted that Trump’s tariffs could have an impact. He noted that “With broad economic uncertainty around global trade, growth has largely stalled.” The CEO added, “In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control.”
The comments from the CEO suggest that growth may be lacking in the short term. However, with tariff wars likely a temporary headwind, adding DAL to your portfolio could potentially pay off as part of a long-term investment strategy.
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