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Delta Air Lines showed strong financial performance during the third quarter of the year, which was boosted by an increased number of premium and business travelers. Adjusted revenue reported by the airline was $15.197 billion, a little higher than the Bloomberg consensus figure of $15.08 billion and a 4.1% annual growth.
The adjusted earnings per share were at $1.71, which exceeded the expectations of $1.56. Adjusted operating income reached $1.7 billion, with an operating margin of 11.2%, down 1.7% from the previous year.
Delta’s CEO, Ed Bastian, said that revenue momentum strengthened in the third quarter following earlier challenges in the year caused by geopolitical tensions and tariff uncertainties.
Bastian highlighted the airline’s recovery in corporate travel and noted that improving business fundamentals were positioning Delta for a strong year-end. Delta’s stock rose over 7% in early trading following the announcement, leading gains among US airline peers such as United Airlines, American Airlines, and JetBlue.
Bastian said Delta expects full-year adjusted earnings per share of approximately $6, toward the upper range of its prior guidance of $5.25 to $6.25 and above analyst forecasts of $5.80. The company also projected full-year free cash flow between $3.5 billion and $4 billion, aligning with its long-term targets.
Delta expects to achieve an operating margin of 10.5 to 12% and adjusted earnings per share of $1.6 to $1.90 in the fourth quarter. The airline also anticipates that revenue will increase by 2-4% which is underpinned by the consistent high premium and corporate demand. Bastian added that Delta was on track to deliver its most profitable fourth quarter in company history.
Premium travel remains a key contributor to Delta's growth trajectory. Revenue derived from premium cabins, including Delta One and Comfort Plus, experienced a 9% increase compared to the same period in the previous year.
Additionally, the company's loyalty program exhibited strong performance, with SkyMiles revenue escalating by 9%. American Express card compensation totaled $2 billion for the quarter, a 12% increase, indicating higher co-branded credit card activity spending.
The domestic and corporate travel segments demonstrated renewed strength, with domestic revenue up 5% and corporate sales increasing by 8%. According to survey data, 90% of companies project growth in travel volume or a stable level in 2026, which is an encouraging development of confidence among corporate clients.
In early October, Delta maintained a strong operational record, with 99.99% of scheduled flights and 90% on-time arrival rates. Nonetheless, Bastian expressed reservations regarding the operational issues that may arise if the current government shutdown impacts air traffic controllers.
Despite near-term uncertainties, Delta’s strong financial results and improved revenue outlook position it for continued growth into the final quarter of 2025.
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