Quarterly Report — Q1 2025
Filed April 9, 2025
Passenger revenue remains the dominant engine, with domestic routes generating the bulk of ticket sales across Q1 2025 while international segments — Atlantic, Latin America, and Pacific — round out the geographic mix. The company continues carrying significant debt across multiple instruments (SkyMiles-backed notes, aircraft financings, unsecured notes, and facility revenue bonds), though it maintains revolving credit capacity as a liquidity backstop. Delta's loyalty program and refinery operations remain key differentiators, with the SkyMiles program generating both deferred revenue liabilities and serving as collateral for billions in secured financing.
Filing details
Performance by segment
Airline
Airline segment operating revenue grew to $12,978 million from $12,563 million in the prior year quarter, driven by strength in premium products (up 7%) and long-haul international travel. Total cash sales to American Express were $1.9 billion, an increase of approximately 13% compared to the prior year quarter. Operating income was $570 million compared to $565 million in Q1 2024, with capacity up 4% and premium product demand offsetting main cabin softness from macro uncertainty.
“Revenue growth was primarily driven by strength in demand for premium products, which was mitigated by softness in main cabin demand on reduced consumer and corporate confidence caused by increased macro uncertainty, particularly toward the end of the quarter.”
Refinery
Refinery segment operating revenue fell to $1,698 million from $2,049 million in Q1 2024, a decrease of $351 million driven by lower pricing of refined products. The segment swung to a small operating loss of $(1) million compared to operating income of $49 million in the prior year quarter. Third-party refinery sales declined $123 million to $1,062 million, and the refinery provided no incremental fuel cost benefit per gallon compared to a five cents per gallon benefit in Q1 2024.
“The refinery generated a small operating loss resulting in no incremental cost per gallon compared to a benefit of five cents per gallon in the March 2024 quarter.”