01—Abstract
Summary
Summary of the 10-Q filed July 10, 2025. Cited figures are marked; the original filing is the authoritative source.
Delta Air Lines, Inc. reported operating income of $2.1 billiona for the quarter ended June 30, 2025, down $165 million from the June 2024 quarter, on total operating revenue of $16.65 billion, essentially flat year over year ($16.66 billion in the prior-year quarter).
Total operating expense rose $155 millionb, or 1%, to $14.55 billion, driven by a 4% increase in capacity, higher salaries and related costs, and higher landing fees, partially offset by a 13% decline in aircraft fuel and related taxes. Net income for the quarter was $2.13 billion, or $3.27 per diluted share, compared with $1.31 billion, or $2.01 per diluted share, a year earlier. The improvement at the bottom line was driven primarily by a $735 million gain on investments, net, versus a $196 million loss in the prior-year quarter, along with lower interest expense.
For the six months ended June 30, 2025, net income was $2.37 billionc, or $3.63 per diluted share, on operating revenue of $30.69 billion and operating income of $2.67 billion. Cash flow from operations was $4.24 billion for the six months, compared with $4.86 billion a year earlier. Liquidity stood at $6.4 billion as of June 30, 2025.
During the June 2025 quarter, the company issued $2.0 billiond of unsecured notes and used part of the proceeds to repay the PSP1 Loan due 2030. Total debt declined to $14.38 billion from $15.35 billion at December 31, 2024, and the company's year-to-date debt and finance lease repayments totaled $3.5 billion. Management expects 2025 capital spending of approximately $5.0 billion, primarily for aircraft, and projects an annual effective tax rate between 22% and 25%.
Aircraft purchase commitments totaled $16.8 billion at June 30, 2025. The Board approved a quarterly dividend of $0.1875 per share payable August 21, 2025, and authorized a $1.0 billion opportunistic share repurchase program, under which no shares were repurchased in the June 2025 quarter.
02—Key points
Key Highlights
- Operating income of $2.10 billion for the June 2025 quarter, down $165 million from $2.27 billion a year earlier; operating revenue was essentially flat at $16.65 billion.
- Net income of $2.13 billion ($3.27 per diluted share) for the June 2025 quarter, versus $1.31 billion ($2.01 per diluted share) a year earlier, aided by a $735 million gain on investments, net.
- Aircraft fuel and related taxes fell $355 million (13%) to $2.46 billion, with the average price per gallon down to $2.21 from $2.64, while capacity (ASMs) rose 4%.
- Total debt was reduced to $14.38 billion at June 30, 2025 from $15.35 billion at December 31, 2024, after the issuance of $2.0 billion of unsecured notes used to repay the PSP1 Loan.
- Liquidity of $6.4 billion at June 30, 2025, including approximately $3.1 billion undrawn under revolving credit facilities.
- Operating cash flow was $4.24 billion for the six months ended June 30, 2025, versus $4.86 billion a year earlier; free cash flow for the June 2025 quarter was $733 million.
- Aircraft purchase commitments totaled $16.8 billion, and 2025 capital expenditures are expected to be approximately $5.0 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed July 10, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $16.65B$16.66B | −0.1% |
| Operating Expenses | $14.55B$14.39B | +1.1% |
| Operating Income | $2.10B$2.27B | −7.3% |
| Net Income | $2.13B$1.30B | +63.2% |
| EPS (Basic) | $3.28$2.04 | +60.8% |
| EPS (Diluted) | $3.27$2.01 | +62.7% |
| Shares Outstanding (Basic) | 649.00M641.00M | +1.2% |
| Shares Outstanding (Diluted) | 652.00M648.00M | +0.6% |
05—Questions
Frequently Asked Questions
Why did net income rise sharply even though operating income declined?
Net income increased to $2.13 billion from $1.31 billion, while operating income fell $165 million to $2.10 billion. The difference was non-operating results: the company recorded a $735 million gain on investments, net, compared with a $196 million loss in the prior-year quarter, and interest expense, net, declined to $172 million from $188 million.
How did fuel costs affect results this quarter?
Aircraft fuel and related taxes decreased $355 million to $2.46 billion, primarily due to a 17% decrease in the market price of jet fuel, partially offset by a 4% increase in capacity. The average price per gallon, including hedge and refinery impacts, was $2.21 compared with $2.64 a year earlier. Management expects fuel consumption for the remainder of 2025 to rise in line with capacity and expects jet fuel prices to remain volatile.
How is the company managing its debt and liquidity?
Total debt declined to $14.38 billion from $15.35 billion at December 31, 2024. In June 2025 the company issued $2.0 billion of unsecured notes (4.95% due 2028 and 5.25% due 2030) and used the proceeds to repay the PSP1 Loan and for general corporate purposes. Year-to-date debt and finance lease repayments were $3.5 billion, and liquidity was $6.4 billion at June 30, 2025. The company stated it was in compliance with its debt covenants.
What are the main drivers of higher operating expenses?
Total operating expense increased $155 million, or 1%, to $14.55 billion in the June 2025 quarter. The filing attributes the increase mainly to costs tied to a 4% rise in capacity, higher employee costs from wage increases (salaries and related costs rose $390 million, or 10%), and higher landing fees and other rents (up $112 million, or 15%), largely offset by lower fuel costs.
What are the company's capital return and capital spending plans?
The Board approved a quarterly dividend of $0.1875 per share payable August 21, 2025, to holders of record as of July 31, 2025. The Board also authorized a $1.0 billion opportunistic share repurchase program running through June 30, 2028, but no shares were repurchased under it in the June 2025 quarter. Management expects 2025 capital spending of approximately $5.0 billion, primarily for aircraft, and aircraft purchase commitments totaled $16.8 billion at June 30, 2025.
06—Continue