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What happened
Delta Air Lines reported an 11% increase in third-quarter profit, reaching $1.42 billion, or $2.17 per share, exceeding analyst expectations. The airline forecasts a strong finish to 2025, projecting adjusted earnings of $1.60 to $1.90 per share for the fourth quarter, compared to the $1.65 expected by analysts. Revenue is expected to grow by up to 4%, driven by resilient demand for premium travel, which saw a 9% increase in revenue. Domestic unit revenue also rose by 2%, supported by a 5% increase in overall domestic passenger revenue. CEO Ed Bastian noted that there are no signs of a consumer pullback in premium products, and Delta is well-positioned for continued growth and margin expansion into 2026.
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Key insights
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1
Strong Premium Travel Demand
Premium travel revenue continues to outperform coach class, indicating robust demand.
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2
Positive Earnings Forecast
Delta projects adjusted earnings of $1.60 to $1.90 per share for Q4.
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3
Increased Domestic Revenue
Domestic unit revenue rose 2% in Q3, reflecting improved demand.
Takeaways
Delta Air Lines is positioned for continued growth, driven by strong demand in the premium travel segment.