Delta Air Lines, Inc.

Bastion, our President, Glenn Hauenstein, and our CFO, Dan Jenke. Ed will open the call with an overview of Delta's performance and strategy. Glenn will provide an update on the revenue environment, and Dan will discuss costs in our balance sheet. After the prepared remarks, we'll take analyst questions. We ask that you please limit yourself to one question and a brief follow-up so that we can get to as many of you as possible. After the analyst Q&A, we will move to our media questions. Today's discussion contains forward-looking statements that represent our beliefs or expectations about future events. All forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Some of the factors that may cause such differences are described in Delta's SEC filing. We'll also discuss non-GAAP financial measures, and all results exclude special items unless otherwise noted. Your figures compare against results as reported unless otherwise stated. You can find a reconciliation of our non-GAAP measures on the investor relations page at ir.delta.com. And with that, I'll turn the call over to Ed.

Thank you, Julie, and good morning, everyone. We do appreciate you joining us today. Before we start, I'd like to take a moment to acknowledge the devastating events in Central Texas. Our hearts go out to the families and the communities that have been impacted. Delta is supporting the American Red Cross in their relief efforts to aid those affected. Earlier this morning, we reported June quarter results, posting pre-tax income of $1.8 billion, or earnings of $2.10 per share, on record quarterly revenue in line with our April guidance. This performance reflects strong execution in a demand environment that has stabilized and the continued resilience of our diverse high margin revenue streams. We achieved an operating margin of 13.2% and generated $700 million of free cash flow during the quarter, bringing our year-to-date free cash flow to $2 billion. The strong cash generation We continue to repay debt and announce a 25% increase to our quarterly dividend. I'm proud of the team for delivering strong financial and operational results in the first half of our centennial year. In a dynamic and somewhat unpredictable environment, our team has stayed focused, controlling what we can control and executing with discipline. Operationally, Delta once again led network peers across key reliability and customer experience metrics including on-time performance, completion factor, and net promoter score. This strong performance underscores the resilience of our operation and the exceptional efforts of our teams to take care of our customers despite greater than normal summer storms across our system. Consistent with Delta's longstanding commitment to industry-leading total rewards for industry-leading performance, we rewarded our people with a well-deserved base pay increase of 4% during the quarter. and we're also on track for another industry-leading profit-sharing payout next February. Turning to demand, the environment has been stable since resetting to a lower growth rate earlier this year. Overall demand for air travel remains similar to last year, with softness largely contained to main cabin and particularly during off-peak periods. Diversified revenue streams, which make up nearly 60% of Delta's revenue, remain resilient. The fundamentals of the US economy are solid. Our core consumer is in good shape and continues to prioritize travel. And affinity for Delta's brand has never been stronger. This is evidenced by the sustained strength of our premium products and our industry-leading co-brand card, with consumer spend growth on the Delta American Express card up double digits in the first half of the year. The recent passage of the reconciliation package create certainty around tax policy. And with continued progress on trade negotiations, we expect both consumer and corporate confidence to improve in the second half of the year, creating the environment for travel demand to accelerate. On the supply side, we're encouraged by the industry's actions to align capacity with demand as we move beyond the peak summer period. Importantly, seats at the lower end of the market are scheduled to contract as carriers adjust to the environment and work to improve financial performance. Against this backdrop, Delta remains very well positioned. We have also adjusted to a lower growth environment, and as discussed in April, our focus is managing the levers in our control to generate strong earnings and free cash flow. This includes adjusting our capacity to match demand and aggressively managing our cost base to deliver on our commitments. For the September quarter, The midpoint of our guidance is for earnings per share flat to last year on low single-digit revenue growth and a double-digit operating margin. The upper end of our outlook positions us to deliver earnings for the first nine months of the year that are flat with 2024. While not the growth we were planning for at the start of the year, this would represent solid performance in a very dynamic environment and highlights the durability of our business model as well as the growing divergence that we're seeing across the industry. Reflecting our confidence in the business, we are restoring financial guidance for the full year. We expect to deliver earnings per share of $5.25 to $6.25 and free cash flow of $3 to $4 billion. This free cash flow outlook is within our long-term target range and enables us to pay down $3 billion of debt this year while also returning cash to shareholders. Looking beyond 2025, I am confident in our ability to deliver financial performance that is consistent with the three to five year framework we outlined for you last fall. In our 100th year of flight, our strategic focus is clear. We're continuing to invest in elevating the world's best airline, expanding our global footprint, and transforming through technology. Globally, we have strengthened our network through a portfolio of best-in-class partnerships, providing access to over 90 percent of global demand via nonstop or one-stop service. What sets our international strategy apart is how we create value through both our global partnerships and our equity investments in them. This quarter, we saw meaningful appreciation in our GAAP results and the value of several of our equity stakes. with a more than $700 million mark-to-market gain, underscoring the strength and health of our portfolio. We also announced two new opportunities, further enhancing our long-term international growth potential. Our recently announced equity stake in WestJet helped solidify our standing as the carrier of the Americas, and our relationship with Indigo is a critical next step to establish connectivity between India, Europe, and North America with India's largest and fastest growing airline. We are also continuing to make meaningful investments in technology across the business. For our customers, we're enhancing the travel experience with Delta Concierge, our virtual personal assistant built into the FlyDelta app that is launching later this year. In the operation, we're driving efficiency through predictive intelligence that improves resource availability and optimizes maintenance. And commercially, we're optimizing revenue through our partnership with Fetcher, leveraging AI-enhanced pricing solutions. While we're still in the test phase, results are encouraging. As has always been the case, our greatest advantage, though, is our people and their unmatched skill, dedication, and commitment to serving our customers. In closing, we are focused on leveraging our competitive strengths and our skill advantage while controlling what we can to deliver for our customers, our employees, and our owners. Our centennial year is a powerful opportunity to demonstrate the magnitude of the differentiation that we have created and the growing durability of our financial performance. Thank you again for joining us. And with that, I'll turn it over to Glenn and to Dan to cover the details of the quarter.

GLENN RALLINSON Thank you, Ed, and good morning. I want to begin by expressing my appreciation to the entire Delta team for your dedication throughout this busy summer travel season and to our customers for continuing to place their trust in Delta. June quarter revenue increased approximately 1% year-over-year to $15.5 billion, in line with our April guidance range. During the quarter, demand trends stabilized at levels that are flat to last year. Our teams did a great job optimizing revenue performance in this environment by leveraging Delta's structural advantages and engaging customers beyond flight to generate a revenue premium to the rest of the industry. Diverse high-margin revenue streams continue to show resilience, growing mid-single digits year over year and driving double-digit operating margins. Premium revenue grew 5% over the prior year, outpacing main cabinets. We are actively rolling out expanded premium cabins in both domestic and international markets and have recently begun booking tickets for travel this fall with our newly refined and further segmented cabin products. Early results are positive, and we expect this to be a long-term driver of margin expansion. Loyalty revenue grew 8% as customer engagement reached new records with millennial and Gen Z segments representing nearly 50% of our active member base. This positions us well to build long-term customer loyalty and capture more share of wallet through our expanding ecosystem. Our best-in-class partnership with American Express continues to grow and lead the broader consumer card industry. In the quarter, we saw a record level of spend on our card portfolio, highlighting both the strength of our customer and the appeal of our program. Renumeration from American Express was $2 billion, up 10% over the prior year on double-digit spend growth and momentum in new card acquisitions. We remain on track for a full-year remuneration of approximately $8 billion, providing durability to both earnings and cash flow. We benefit from a highly engaged, high-spending card member base, customers who are deeply loyal to Delta and possess strong credit profiles. Revenue from Delta's travel products portfolio grew 8% with significant growth in cars, stays, and cruise products as a record percentage of customers added travel products to their flight bookings. Cargo revenue grew 7% year over year on higher yields, and MRO revenue growth accelerated to 29% over prior year on higher volumes and work scopes. Corporate revenue improved modestly year over year, and Delta share premium remains at historic highs. From a profitability perspective, margins are solid in all hubs and geographies, with our strongest margins in our domestic core hubs, where we have industry-leading scale and connectivity. International margins have structurally improved and become more durable, reflecting the success of our multi-year international transformation through strategic investments in network, fleet, and our partnerships. Main cabin margins remain soft across both domestic and international markets. We expect improvement as industry demand and supply rebalances, and we continue to make progress on our commercial initiatives laid out in Investor Day last year. Post-summer, we have proactively adjusted capacity to address areas of softness with reductions in main cabin and off-peak flying beginning in August on a year-over-year basis. While consumer confidence has improved from the lows we saw earlier this spring, we're monitoring booking trends closely and leveraging Delta's strength to optimize revenue in this environment. For the September quarter, we expect revenue to be flat to up 4% year over year. Our outlook reflects stable demand across both consumer and corporate segments, with the midpoint similar to second quarter performance, excluding the impact from lapping the crowd strike caused outage. Diverse revenue streams remain resilient, and as the industry further rationalizes domestic supply, we expect unit revenue trends to improve through the back half of the year. Internationally, while we are seeing some unit revenue pressure through the peak summer months, trends are improving as we move into the shoulder season September and beyond. This is most pronounced in the transatlantic, where softness in European outbound travel is impacting July and August. At the same time, there is a continued shift from U.S. point-of-sale demand into the shoulder periods as consumers look to avoid peak crowds and summer heat. Our new markets are performing very well, and we look ahead to 2026. We're incorporating these evolving seasonal patterns into our international network planning to align with customer preferences and travel behavior. While focused on optimizing revenues and margins in the current environment, we are also making steady progress on our longer-term priorities. That includes investing in the travel experience, expanding customer choice, deepening loyalty to the Delta brand, and engaging customers beyond their flight. In the air, we continue to invest in expanding premium cabins and are elevating the Delta One experience with new premium amenities And our rollout of fast, free Wi-Fi for SkyMiles members is nearly complete. On the ground, we're expanding our clubs and premium lounge footprint. Just a few weeks ago in Seattle, we opened a new SkyClub and our fourth Delta One lounge. With 57 clubs and lounges, Delta customers have access to the largest and most awarded lounge network of any US airline. We are also growing the value of SkyMiles memberships by expanding ways to earn miles beyond travel. including our newest partnership with Uber, which launched during this quarter. In closing, our consistent improvement strategy is delivering a sustained unit revenue premium and returns well in excess of our cost of capital. Our ability to deliver these strong results while the broader industry works to reestablish equilibrium underscores Delta's growing differentiation and enduring leadership position. And with that, I'll turn it over to Dan to talk about our financials.