Delta’s Q3 Top Estimates on Premium and Corporate Growth

Delta Air Lines has announced its financial results for the September quarter of 2025, revealing a strong performance that exceeded Wall Street expectations. The airline reported operating revenue of $16.7 billion, with an adjusted operating revenue of $15.2 billion, surpassing the expected $15.7 billion. This marks a 4.1% increase year-over-year, indicating a positive trajectory for the company. Delta’s earnings per share (EPS) stood at $2.17 on a GAAP basis and $1.71 on an adjusted basis, both figures exceeding the anticipated EPS of $1.52. The airline’s operating income reached $1.7 billion, with an operating margin of 11.2% on an adjusted basis, reflecting efficient cost management and strong revenue streams.

Delta’s performance was driven by diverse and high-margin revenue streams, with premium and corporate sectors leading growth. Premium revenue increased by 9% compared to the same quarter in 2024, showcasing the airline’s ability to attract high-value customers. Additionally, loyalty revenue saw a 9% year-over-year increase, bolstered by the deepened engagement of SkyMiles members. The airline also reported a 12% growth in American Express remuneration, highlighting the success of its co‑brand partnership.

Despite challenges in certain markets, Delta’s domestic revenue environment improved significantly, with a 5% year-over-year growth in domestic passenger revenue. This was supported by an acceleration in corporate sales and strong performance in premium cabins. The airline’s robust operational performance was underscored by its ability to maintain non‑fuel unit cost growth at approximately flat compared to the prior year, aligning with its low‑single‑digit guidance at the start of the year.

DAL Raises Full-Year Guidance, Targeting Up to $6 in Adjusted EPS

Looking ahead, Delta Air Lines has provided optimistic guidance for the December quarter and full-year 2025. The airline expects an operating margin of 10.5% to 12% for the December quarter, with an adjusted EPS ranging from $1.60 to $1.90. The company anticipates total revenue growth of 2% to 4% year-over-year, driven by continued strength in domestic markets and significant improvements in transatlantic unit revenue.

For the full year 2025, Delta projects an adjusted EPS of approximately $6, positioning it in the upper half of its July guidance. The airline also expects free cash flow to be between $3.5 billion and $4 billion, aligning with its long‑term targets. Delta’s financial outlook is supported by strong cash generation, which has enabled the company to pay down nearly $2 billion in debt year-to-date, reducing its gross leverage to 2.4× by the end of the quarter.

Delta’s strategic investments in its network and fleet are expected to further enhance its competitive position. The airline has announced new and expanded services in key markets, including Austin, Boston, and Seattle, as well as new routes to Sardinia, Malta, and Hong Kong. These initiatives are aimed at capitalizing on growing demand and strengthening Delta’s presence in high‑potential markets. Overall, Delta Air Lines remains well‑positioned to deliver sustained top‑line growth, margin expansion, and earnings improvement consistent with its long‑term financial framework.