Delta Air Lines, Inc.

Q1 Financial Performance: Delta Air Lines reported a pre-tax income of $382 million, or $0.46 per share, which remains flat compared to the previous year. Revenue increased 3.3% year-over-year to a record $13 billion, but unit revenues declined by 1%. The operating margin for the quarter was approximately 5%. Free cash flow for the quarter was strong at $1.3 billion.

Challenging Revenue Environment: While the initial outlook for 2025 was positive, Delta experienced a noticeable softening in demand, especially in domestic markets, with specific weakness in Main Cabin travel. The company expects Q2 revenue to decline by 2% to up 2% from the prior year, reflecting ongoing economic uncertainty and cautious consumer behavior.

Capacity Management: In response to the declining demand, Delta plans to keep second-half capacity growth flat compared to last year, with reductions primarily in domestic Main Cabin seats. The company will also focus on maintaining low single-digit growth in non-fuel unit costs. Expected net aircraft additions for 2025 will be less than 1%, with an increase in aircraft retirements to optimize capacity and enhance profitability.