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Delta Reports Record Earnings and Optimizes Global Strategy in Q2 2025

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Delta Air Lines concluded the second quarter of 2025 with record revenue and strong operational performance, while solidifying key strategic alliances and expanding its international network.

Historic Revenue and Solid Profitability

The airline reported adjusted operating revenue of $15.5 billion, a 1% increase compared to the same period last year, despite a 3% decline in adjusted unit revenue (TRASM). This record figure was driven by a 4% growth in capacity, showcasing the resilience of Delta’s diversified business model.

GAAP operating revenue reached $16.6 billion, generating an operating income of $2.1 billion with a 12.6% margin. On an adjusted basis, operating income was $2.0 billion with a 13.2% margin. GAAP pre-tax income rose to $2.6 billion, while the adjusted figure stood at $1.8 billion. Adjusted earnings per share were $2.10.

Diversification: The Cornerstone of Delta’s Model

Revenue from premium services grew 5% year-over-year, while loyalty program revenue increased 8%, fueled by higher spending on co-branded credit cards and new acquisitions. American Express contributed $2 billion, a 10% rise compared to the previous year. Additionally, cargo revenue and maintenance services (MRO) grew by 7% and 29%, respectively.

International revenue grew 2% during the quarter. The Pacific region led with an 11% increase, supported by the restoration of transpacific routes. Meanwhile, transatlantic flights remained strong, growing 2% over 2024’s record levels.

→ Delta Bets Big on Seattle: New International Routes and Two VIP Lounges

Focus on Cost Control

Delta kept non-fuel unit cost growth at 2.7%, in line with expectations. Adjusted operating expenses totaled $13.5 billion, with non-fuel costs at $10.5 billion. Adjusted fuel expenses were $2.5 billion, down 11% year-over-year, with the price per gallon dropping 14% to $2.26.

The company anticipates the third quarter to be its strongest of the year in terms of non-fuel cost control, with expectations to keep costs flat or even reduce them compared to 2024.

Strong Cash Generation and Debt Reduction

Delta generated $733 million in free cash flow during the quarter, with adjusted operating cash flow of $1.8 billion and gross capital expenditures of $1.2 billion. In the first half of the year, the airline accumulated $2 billion in free cash flow and reaffirmed its annual target of $3 to $4 billion.

Adjusted net debt at the end of the quarter was $16.3 billion, a reduction of $1.7 billion compared to the end of 2024. The company made $2.9 billion in debt and lease payments and announced a 25% increase in its quarterly dividend starting in Q3 2025.

Network Expansion

In terms of fleet, Delta took delivery of 10 new aircraft (including A350-900, A330-900, A321neo, and A220-300 models) and retired 10 others. The airline expanded its network with new nonstop flights from Salt Lake City to Seoul-Incheon and announced future routes from Seattle to Barcelona and Rome, starting in May 2026.

Global Strategic Alliances

Delta strengthened its partnership with WestJet through a minority equity stake, promising a more seamless and connected travel experience, pending regulatory approvals. Additionally, it plans expanded collaborations with IndiGo, Air France-KLM, and Virgin Atlantic to enhance connectivity between India, Europe, and North America.

The airline also extended its joint venture with LATAM to Argentina, reinforcing connectivity between the U.S., Canada, and South America.

Outlook for the Remainder of 2025

For the third quarter, Delta expects total revenue to be flat or up to 4% higher than the same period in 2024, with an operating margin of 9% to 11% and earnings per share between $1.25 and $1.75.

For the full year 2025, the company reaffirmed its financial guidance, with expected earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion. Gross leverage will remain below 2.5x.

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