Delta Air Lines reported Q2 operating revenue of $16.6 billion and operating income of $2.1 billion, beating analyst expectations. CEO Ed Bastian attributed the improvement to stabilizing travel demand and revenue from high-yielding streams such as premium seating and loyalty travel awards. Delta restored its financial guidance, expecting earnings per share of $5.25-$6.25 and free cash flow of $3-$4 billion.
Delta Air Lines (NYSE: DAL) has reported robust financial results for the June quarter of 2025, with operating revenue of $16.6 billion and operating income of $2.1 billion, surpassing analyst expectations. The airline's CEO, Ed Bastian, attributed the strong performance to stabilizing travel demand and revenue from high-yielding streams such as premium seating and loyalty travel awards [1].
The airline's operating margin reached 13 percent, resulting in a pre-tax profit of $1.8 billion. This performance reflects Delta's ability to leverage its structural advantages and optimize operations in a challenging environment [2]. The company's diverse revenue streams, including premium revenue, loyalty revenue, cargo, and MRO revenue, have contributed to its record revenue [2].
Delta has restored its financial guidance for the September quarter and the full year 2025. The company expects earnings per share to range between $5.25 and $6.25, with an operating margin of 9 to 11 percent for the September quarter. For the full year 2025, Delta anticipates generating free cash flow of $3 to $4 billion, consistent with its long-term targets [1][2].
In addition to its financial performance, Delta has announced a 25 percent increase to its dividend payment, starting in the September quarter. The airline continues to prioritize cost execution, with non-fuel unit costs expected to be flat to down compared to 2024. This focus on cost management, coupled with strong revenue generation, positions Delta well for sustained growth and profitability in the coming quarters [3].
References:
[1] https://news.delta.com/delta-air-lines-announces-june-quarter-2025-financial-results
[2] https://www.ainvest.com/news/delta-air-lines-reports-13-operating-margin-16-6-billion-revenue-2507/
[3] https://www.prnewswire.com/news-releases/delta-air-lines-announces-june-quarter-2025-financial-results-302502102.html
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