TLDR
- Delta Air Lines (DAL) reported Q3 adjusted EPS of $1.71, beating the expected $1.56, with adjusted revenue of $15.197 billion versus estimates of $15.08 billion.
- The company raised its full-year EPS guidance to $6, up from the previous range of $5.25 to $6.25 and above analyst estimates of $5.80.
- Corporate sales grew 8% and premium revenue increased 9% in Q3, driven by strong demand from business and premium travelers.
- Delta projects Q4 operating margin of 10.5% to 12% and expects what CEO Ed Bastian calls the best fourth quarter profit in company history.
- Delta stock jumped more than 6% in premarket trading, lifting shares of United Airlines, American Airlines, and Southwest Airlines by 2% to 5%.
Delta Air Lines delivered a strong third quarter performance Thursday, beating Wall Street expectations on both earnings and revenue. The results prompted a sharp rise in airline stocks across the sector.
Delta Air Lines, $DAL, Q3-25 Results:
📊 Adj. EPS: $1.71 🟢
💰 Revenue: $16.67B 🟢
📈 Net Income: $1.42B
🔎 Record revenue and strong free cash flow positioned Delta to raise FY EPS outlook despite mixed international demand. pic.twitter.com/GZowuxEALf— EarningsTime (@Earnings_Time) October 9, 2025
The carrier reported adjusted earnings per share of $1.71 for Q3. Analysts had expected $1.56. Adjusted revenue came in at $15.197 billion, topping the $15.08 billion estimate.
Delta’s stock climbed more than 6% in premarket trading. The gains extended to rivals United Airlines, American Airlines, and Southwest Airlines, which all posted increases ranging from 2% to 5%.
CEO Ed Bastian pointed to improved business conditions after a rocky start to the year. Early in 2025, geopolitical events and tariff announcements dampened consumer confidence. Corporate revenues slowed during that period.
“I’m pleased to say that in the third quarter, things picked right back up again,” Bastian told Yahoo Finance. The recovery led Delta to raise its full-year earnings guidance.
The airline now expects full-year adjusted EPS of approximately $6. This sits in the upper half of its previous range of $5.25 to $6.25. The new target exceeds analyst estimates of $5.80.
Delta also increased its free cash flow projection to $3.5 billion to $4 billion. The previous range was $3 billion to $4 billion.
Premium and Corporate Travel Drive Growth
Premium travel proved to be a major strength for Delta in Q3. Revenue from premium cabins, including Comfort Plus and Delta One, jumped 9% compared to last year.
Corporate sales rose 8% during the quarter. Delta’s internal surveys show 90% of companies expect travel volume to rise or remain steady in 2026. That’s an improvement from a year ago.
“Our consumer is a high-end consumer. It’s a premium consumer,” Bastian said. He noted these customers have the financial means and interest to travel.
The SkyMiles loyalty program generated strong results. Loyalty revenue increased 9% year-over-year.
American Express card remuneration hit $2 billion in the quarter. That’s up 12% from last year. Co-branded credit card spending grew by double digits.
Looking Ahead to Q4
Delta projects an operating margin of 10.5% to 12% for the fourth quarter. Revenue is expected to grow 2% to 4%.
The company forecasts adjusted EPS of $1.60 to $1.90 for Q4. Bastian said Delta is targeting the best fourth quarter profit in company history.
“We’re looking at for the fourth quarter a comparable amount of growth,” the CEO said. Sales trends have accelerated across all geographies in the past six weeks.
Domestic revenue rose 5% in Q3. Total adjusted revenue per available seat mile came in at $0.19, up 0.3% from last year.
The year-ago comparison benefited from the CrowdStrike outage that disrupted operations in 2024. This created a slightly easier comparison for Q3 2025 results.
Bastian expressed confidence about restored business sentiment. He credited new trade deals between the US and various partners for improving corporate outlook.
The government shutdown raised some concerns about air traffic control capacity. Nashville International Airport saw delays this week due to controller shortages. Burbank Airport operated without controllers for several hours.
“In the first week of October, we completed 99.99% of our schedule,” Bastian said. On-time arrivals reached 90% system-wide.
He warned that prolonged shutdown effects could become problematic. “If this thing continues, I’d say beyond next week, it’s going to probably be a bigger source of concern,” Bastian noted.
Delta’s stock had been down about 4% to 5.6% for the year through Wednesday’s close. The Q3 results put shares on track to turn positive for 2025.
The carrier initially projected full-year EPS above $7.35 at the start of its 100th anniversary year. It withdrew guidance in April after Trump’s tariff announcements stalled demand. Delta restored guidance in July before increasing it again with Thursday’s earnings report.
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