09:40 AM EDT, 04/09/2025 (MT Newswires) -- Delta Air Lines ( DAL ) reported better-than-expected first-quarter earnings on Wednesday, but the carrier opted not to reaffirm its full-year outlook due to an uncertain macroeconomic environment.

Adjusted earnings ticked up to $0.46 a share for the March quarter from $0.45 the year before, topping the FactSet-polled consensus of $0.38. Operating revenue improved 2% year over year to $14.04 billion. Total passenger revenue gained by 3% while cargo climbed by 17%.

"While the first quarter unfolded differently than initially expected, we delivered solid profitability that was flat to prior year and is expected to lead the industry," Chief Executive Ed Bastian said in a statement. However, growth has "largely stalled" amid the economic uncertainty around global trade, according to Bastian.

Major US airlines are likely to face earnings and revenue pressures in 2025 as President Donald Trump's tariffs on other countries increase the risks of a recession at home, UBS Securities said in a Monday client note. The brokerage at the time said it estimates major airlines, including Delta, United Airlines (UAL) and American Airlines ( AAL ) , to report lower bottom-line results for this year than it previously forecast.

China on Wednesday increased tariffs on imports from the US to 84% from 34%, effective April 10, after Trump boosted duties on the Asian country to above 100%. The White House announced a sweeping new tariff policy last week.

Last month, Delta maintained its full-year outlook, but cut its first-quarter earnings and revenue growth guidance, citing increased macro uncertainty.

Delta on Wednesday opted not to reiterate its full-year 2025 outlook amid market uncertainty and said it plans to provide an update later in the year as economic visibility improves. The company said in January it expected adjusted EPS of more than $7.35 for the current year. "Given our position of strength, our bias toward action and the decline in fuel prices, Delta remains well positioned to deliver solid profitability and free cash flow for the year," Bastian said.

The airline plans to reduce capacity growth in the second half to flat versus last year and "actively" manage costs and capital expenditures, according to Bastian. "In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control," the CEO added.

Operating revenue inclined 3.3% to $12.98 billion on an adjusted basis in the first quarter, largely in line with the Street's view, aided by the "resilience" of its diversified revenue streams, the company said. Adjusted total revenue per available seat mile slipped 1% year over year. Unit revenue logged declines in the domestic and Latin America geographies, while the Atlantic and Pacific increased, the airline reported.

For the ongoing quarter, Delta estimates adjusted EPS to be in a range of $1.70 to $2.30 and revenue to be down 2% to up 2%. The Street is looking for non-GAAP EPS of $2.21 and sales of $15.63 billion.

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