Delta Airlines Q1 Earnings: Amid Trump Tariff Woes, CEO Ed Bastian Embarks On Margin, Cash Flow Protection

Shares of Delta Air Lines Inc. (DAL) were in the spotlight on Wednesday morning after the company’s first-quarter earnings topped Wall Street estimates. However, chief executive officer Ed Bastian disclosed that the airline is reducing planning capacity growth in the second quarter amid slower growth due to the tariff wars.

The airline reported a 3.3% rise in its adjusted revenue of $12.98 billion compared to an estimate of $13.46 billion, according to FinChat data. Adjusted earnings per share (EPS) stood at $0.46 versus a Street estimate of $0.39.

During the quarter, total revenue per available seat mile (TRASM) fell 2% year over year to $0.2053.

CEO Ed Bastian acknowledged that growth has largely stalled amid broad economic uncertainty around global trade.

“In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control.  This includes reducing planned capacity growth in the second half of the year to flat over last year while actively managing costs and capital expenditures.”

The airline now expects June-quarter profitability of $1.5 to $2 billion.

“Given the lack of economic clarity, it is premature at this time to provide an updated full-year outlook. Given our position of strength, our bias toward action and the decline in fuel prices, Delta remains well positioned to deliver solid profitability and free cash flow for the year,” Bastian said.

For 2025, Delta expects revenue to change between -2% and 2%. The company expects operating margin of 11% to 14% and EPS to come in at $1.70 to $2.30.

Delta CFO Dan Janki said that as the airline reduces its capacity growth, it is taking incremental action to manage costs. “We expect non-fuel unit cost growth consistent with our long-term target of up low single digits in the second quarter and through the rest of the year,” Janki said.

At the end of March 2025, Delta’s adjusted net debt declined by $1.1 billion to $16.9 billion.

Delta shares rose nearly 6% on Wednesday morning. However, the stock has lost over 35% in 2025.

Also See: Amid Trump’s Tariff Wars, Walmart Reiterates Q1 Sales Guidance But Says Range Of Outcomes For Operating Income Growth Has Widened

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