Delta Air Lines (DAL) Third Quarter 2025 Results

Delta Airlines forecast a better-than-expected end to 2025 and a strong start to next year thanks to rising airfares and resilient demand for luxury travel.

The airline on Thursday forecast adjusted earnings of between $1.60 and $1.90 per share for the fourth quarter, compared with $1.65 per share expected by analysts surveyed by LSEG. Revenue in the final three months of the year will rise as much as 4%, Delta said, above the 1.7% expected by Wall Street.

“Looking ahead to 2026, Delta is well positioned to deliver revenue growth, margin expansion and earnings improvement consistent with our long-term financial framework,” CEO Ed Bastian said in an earnings release.

Delta’s outlook points to improving demand and a shrinking flight surplus that has depressed domestic fares and airline revenues this year, particularly in early 2025, when consumer confidence was shaken by the early stages of President Donald Trump’s tariffs.

“From July, spot sales resumed,” Bastian said in an interview.

The Atlanta-based carrier is the first of the major airlines to report earnings this quarter. Its shares were up about 4% in afternoon trading.

Here’s how the company performed in the third quarter, compared to what Wall Street expected, based on LSEG consensus estimates:

• Earnings per share: $1.71 adjusted vs. $1.53 expected
• Income: $15.2 billion adjusted versus $15.06 billion expected

Delta’s third-quarter profit rose 11% to $1.42 billion, or $2.17 per share, from $1.27 billion, or $1.97 per share, a year earlier. Taking into account non-recurring items, including investment-related adjustments, its profit rose 15% to $1.12 billion, or $1.71 per share, ahead of analysts’ estimates.

Adjusted revenue increased 4% year-over-year.

Demand for premium travel continued to eclipse the coach cabin. Revenue in the premium segment, which includes first-class and roomier economy seats, rose 9% in the third quarter to nearly $5.8 billion, while main cabin revenue fell 4% to about $6 billion.

Bastian said there was no sign of a consumer pullback for premium products. Delta President Glen Hauenstein reiterated that revenue from the airline’s premium options, like first class, is on track to eclipse main cabin sales next year.

Delta and other carriers have eliminated unprofitable or less profitable flights, such as those on unpopular midweek travel days, to help stem the oversupply of seats in the market. That excess capacity, combined with changing consumer habits and rising costs, has made summer profits previously more elusive for some U.S. carriers.

Domestic unit revenues rose 2% in the third quarter at the carrier, driven by a 4% increase in capacity, and Delta projected they would remain positive year over year in the current quarter. Stronger demand for business travel contributed to a 5% increase in overall domestic passenger revenues in the third quarter.

Delta said it expects full-year adjusted earnings per share of $6, coming in at the upper range of the $5.25 to $6.25 it forecast for 2025 in July.

Asked about the federal government shutdown, Bastian told CNBC that the airline has seen “no impact” on its operations in recent days, but that if it continues for about 10 more days, that could change.