Delta Air Lines Inc (NYSE:DAL) stock rallies 23.94% (As on April 9, 2:36:49 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY25. Acknowledging that growth has stalled due to the tariff-induced uncertainty, DAL decided against reaffirming its 2025 financial guidance. Management stated that it would provide an update later in the year as visibility improves. To combat the weak demand scenario, DAL reduced planned capacity growth in the second half of 2025 to flat year over year. This move is aimed at protecting margins and avoiding lowering fares. DAL exited the first quarter of 2025 with cash and cash equivalents of $3.71 billion compared with $3.87 billion at the end of the first quarter of 2024. The company had an adjusted net debt of $16.9 billion at the end of the March quarter, a reduction of $1.1 billion from the 2024-end. Adjusted operating cash flow in the March quarter was $2.4 billion, with gross capital expenditures and free cash flow of $1.2 billion and $1.3 billion, respectively.

Moreover, Passenger revenues, which accounted for 81.8% of total revenues, increased 3% year over year at $11.48 billion.  Domestic passenger revenues inched up by merely 1% year over year. The marginal increase was attributable to the tariff-induced slowdown in domestic air travel demand. International passenger revenues were boosted by the buoyant demand for long-haul travel. Cargo revenues improved 17% year over year to $208 million. Total operating expenses, including special items, increased 3% to $13.47 billion. Salaries and related costs rose 8% to $4.1 billion. This increase was due to higher wages stemming from the contract with pilots that was ratified in 2023. Fuel gallons consumed jumped 5% to $976 million. Average fuel price per gallon (adjusted) fell 11% to $2.45. Non-fuel unit cost (adjusted or CASM-Ex) increased 2.6% to 14.44 cents.

DAL in the first quarter of FY25 has reported the adjusted earnings per share of 46 cents, beating the analysts’ estimates for the adjusted earnings per share of 40 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 2.1 percent to $14.04 billion in the first quarter of FY25, beating the analysts’ estimates for revenue of $13.81 billion.

Delta Air Lines, expects second-quarter 2025 adjusted earnings per share in the $1.7-$2.3 band. The adjusted operating margin is expected in the 11-14% band. Revenues on an adjusted basis are expected to either fall 2% or increase upto 2% year over year.