Split one-time costs and earnings, earnings per share of 46 cents. That’s better than Zacks Investment Research’s forecast of 40 cents per share analysts.
Delta Air Lines Inc. shares rose more than 8%. Citi analysts believe that for investors who want to maintain exposure to the travel sector, Delta may be the best airline to address uncertainty in the coming months.
“Overall, these results suggest a resilient business model given the serious uncertainty about demand and global tariff disputes,” Citi Investment Research’s Stephen Trent wrote in a note to clients.
Still, the industry has been beaten by investors this year, with the increase in tariffs expected to cause trouble and put it elsewhere. The country’s most profitable airlines have seen stocks fall 41% this year, better than rivals, the United States and Manchester United.
Quarterly operating income climbed from $13.75 billion to $14.04 billion, an estimated defeat to Wall Street at $13.81 billion.
The average fuel price per gallon dropped from $2.79 to $2.47.
Last month, the Delta cut its revenue and revenue outlook for the first quarter, when declines in consumer and corporate confidence were undermining domestic demand as economic uncertainty grew.
The Delta said in March it expects revenues between 3% and 4% in the first quarter, compared with revenues a year ago below the forecasts of 7% and 9%.
In January, Delta released its fourth-quarter results that outperformed Wall Street’s profit and revenue estimates as the company benefited from strong demand during the critical holiday season.
However, since then, the booming trade war has left consumers and businesses uncertain about what will happen next. Both began to retreat, including travel.
Bastian said Delta expects profitability of $150 million in the June quarter, but will not update its full-year outlook “because of the lack of economic clarity.”
The airline has previously said it expects revenue to exceed $7.35 per share in 2025 and free cash flow exceeds $4 billion. At the time the company expected strong travel demand to continue, which clearly changed.
A month ago, Bastian was confident that he could follow Delta’s guidance for this year. Speaking at the JPMorgan Chase Industrial Conference, executives said Delta felt good about its situation.
“We have nothing to show that there are any cracks in the past few months,” he said. “We expect margins to continue to expand and we think that margins will expand this year even if the year starts slowly.”
However, the uncertainty of U.S. trade policy has shocked companies in every economic sector since.
Bastian said on Wednesday’s Delta earnings call that the airline is seeing softness in domestic consumers and business travel given all the uncertainties. He added that so far, the international market has been more resilient.
Bastian insists that given the fuel prices and actions currently being taken, Delta “has good a benefit to deliver stable profitability and meaningful cash flows in 2025.”
In the second quarter, the airline was looking for revenue of $1.70 to $2.30 per share, with total revenue down 2% and up 2%. Earnings per share are $2.21, according to analysts surveyed by Factset.
“The performance in 2025 is different from what we expected at the beginning of the year,” said Delta President Glen Hauenstein. “So we are adapting to the current situation while staying true to our long-term strategy.”
