Delta Air Lines (DAL) reported its financial results for the first quarter of 2025, ending March 31, 2025, highlighting steady revenue growth fueled by strong demand in key travel segments, despite some pressure on operating margins.

The airline posted total revenue of $11.48 billion, marking a 3.1% increase from $11.13 billion in Q1 2024. This growth was largely driven by robust demand for premium cabin products and long-haul international travel, supported by a 4% increase in capacity. Within that total, passenger revenue climbed to $10.07 billion, up from $9.83 billion in the same quarter last year. Additionally, loyalty travel awards revenue grew to $940 million, an increase from $844 million year-over-year, reflecting continued strength in Delta’s SkyMiles program.

Despite revenue gains, operating income declined to $569 million, down $45 million from Q1 2024. The decrease was mainly due to rising expenses. Total operating expenses reached $13.47 billion, up $337 million (3%) from the previous year. This increase was primarily attributed to higher employee-related costs and rising landing fees, though it was partially offset by lower aircraft fuel costs.

From an efficiency standpoint, Delta reported a 2% decrease in operating cost per available seat mile (CASM), indicating modest cost improvements. However, when excluding fuel, non-fuel unit costs (CASM-Ex) rose by 2.6%, reflecting inflationary pressures on core operations.

Cash flow remained a bright spot for the airline. Delta generated $2.4 billion from operating activities, and free cash flow came in at $1.3 billion for the quarter. Notably, total cash sales to American Express reached $1.9 billion, a 13% year-over-year increase, reinforcing the strength of Delta’s co-branded credit card partnership.

In terms of financial obligations, the company used $531 million in cash for debt and finance lease repayments during the quarter. Additionally, Delta’s Board approved a $0.15 per share quarterly dividend, resulting in $99 million paid out to shareholders in March 2025.

Overall, Delta’s performance in Q1 2025 reflects a resilient business model with strong consumer demand—particularly in premium travel segments—even as the airline continues to navigate rising operational costs and a modest dip in profitability. The results underscore Delta’s ability to balance investment and returns while capitalizing on the recovery in global air travel.