🔹 Adj. EPS: $2.10 (Est. $2.05) 🟢; DOWN -11% YoY
🔹 Revenue: $15.5B (Est. $15.42B) 🟢; UP +1% YoY
🔹 NI: $1.37B; -10% YoY
🔹 OI: $2.05B; -10% YoY
FY25 Guidance (Restored):
🔹 EPS: $5.25 - $6.25 (Est. $5.39) 🟢
🔹 Free Cash Flow: $3B - $4B
🔹 Gross Leverage: <2.5x
Q3 FY25 Guidance:
🔹 EPS: $1.25 - $1.75
🔹 Revenue Growth: Flat to +4% YoY
🔹 Operating Margin: 9% - 11%
Operational Highlights:
🔹 TRASM: 19.97¢; DOWN -3% YoY
🔹 Non-fuel CASM: 13.49¢; UP +2.7% YoY
🔹 Adjusted Fuel Expense: $2.51B; DOWN -11% YoY; Avg. Fuel Price: $2.26/gal (DOWN -14% YoY)
🔹 Adjusted Operating Cash Flow: $1.84B (DOWN -25% YoY)
🔹 Free Cash Flow: $733M (DOWN -42% YoY)
🔹 Gross CapEx: $1.17B (DOWN -4% YoY)
🔹 Adjusted Net Debt: $16.3B (DOWN -13% YoY)
Segment & Strategic Highlights:
🔹 Premium Revenue: UP +5% YoY
🔹 Loyalty Revenue: UP +8% YoY
🔹 Amex Remuneration: $2B; UP +10% YoY
🔹 Cargo Revenue: UP +7% YoY
🔹 MRO Revenue: UP +29% YoY
🔹 International Revenue: UP +2% YoY
🔸 Pacific Revenue: UP +11% YoY
🔸 Transatlantic Revenue: UP +2% YoY
Balance Sheet & Capital Return:
🔹 Total Debt & Finance Lease Obligations: $15.1B (DOWN -16% YoY)
🔹 Liquidity: $6.4B (including $3.1B undrawn revolver)
🔹 Dividend Increase: +25% beginning September quarter
🔹 Dividend Payment: $591M; UP +6% YoY
🔹 Share Repurchases: $202M
CEO Ed Bastian Commentary:
🔸 "Delta delivered record revenue with a 13% operating margin, generating $1.8B in pre-tax profit. As we enter the second half of our centennial year, we remain focused on executing strategic priorities to drive strong earnings and cash flow."
President Glen Hauenstein Commentary:
🔸 "Demand trends stabilized, with resilience in high-margin revenue streams. We expect unit revenue trends to improve through H2 as capacity adjusts and supply rationalizes."
CFO Dan Janki Commentary:
🔸 "We expect Q3 to be our best non-fuel unit cost performance of the year. We remain on track to deliver low single-digit non-fuel unit cost growth YoY."
Strategic & Operational Updates:
🔸 Launched expanded partnerships (WestJet equity stake, LATAM JV expansion to Argentina, future India-Europe-US JV with IndiGo, Air France-KLM, Virgin Atlantic)
🔸 Record Transatlantic summer schedule launched
🔸 10 aircraft delivered in Q2; 10 aircraft retired
🔸 Expanded Sky Club lounges and opened first Delta One Lounge in SEA
🔸 Fly Delta app 7.0 launched; Uber partnership expanded
🔸 Continued rollout of fast, free Wi-Fi; 95% mainline fleet expected equipped by end-2025
🔸 Issued 2024 Delta Difference Report highlighting sustainability progress (fuel efficiency +45M gallons saved YoY)