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Delta's profit forecast tops estimates, buoyed by higher fares and resilient luxury demand

Delta Air Lines reported better-than-expected quarterly profits and forecasts a strong finish to 2025, driven by premium travel demand.
Delta's profit forecast tops estimates, buoyed by higher fares and resilient luxury demand
A 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.

Key insights

  • 1

    Strong Premium Travel Demand

    Premium travel revenue continues to outperform coach class, indicating robust demand.

  • 2

    Positive Earnings Forecast

    Delta projects adjusted earnings of $1.60 to $1.90 per share for Q4.

  • 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.

Read the full article on CNBC