Delta Air Lines Flight Museum in Atlanta, Georgia.
Leslie Josephs/CNBC
delta air lines The end of 2025 is projected to be better than expected due to rising airfares and flexible luxury travel demand.
The airline on Thursday projected adjusted earnings between $1.60 and $1.90 per share for the fourth quarter, while analysts surveyed by LSEG were expecting $1.65 per share. Delta said revenue will rise 4% in the last three months of the year, better than Wall Street’s expectation of 1.7%.
“Looking to 2026, Delta is well-positioned to deliver top-line growth, margin expansion and earnings improvement consistent with our long-term financial structure,” CEO Ed Bastian said in an earnings release.
Delta shares were up more than 5% in premarket trading.
Here’s how the company performed Three months ending 30 September, That compared to what Wall Street was expecting, based on LSEG consensus estimates:
- earnings per share: $1.71 adjusted vs. $1.53 expected
- Income: $15.2 billion adjusted vs. $15.06 billion expected
Delta’s outlook points to an improvement in demand and a reduction in flight overhangs that have led to declines in domestic fares and revenue at the airline this year, especially through early 2025 when consumer confidence was shaken by the early stages of President Donald Trump’s tariffs.
The Atlanta-based carrier is the first of the major airlines to report results for the quarter.
“Cash sales picked up from July,” Bastian said in an interview.
Delta’s third-quarter profit rose 11% to $1.42 billion, or $2.17 a share, from $1.27 billion, or $1.97 a share, a year earlier. Adjusting for one-time items, including investment-related adjustments, its profit beat analyst estimates by 15% to $1.12 billion, or $1.71 per share.
Adjusted revenue increased 4% year over year.
Demand for premium travel was greater than for coach cabins. Revenue from the high-end segment, which includes first class and roomier economy seats, rose 9% in the third quarter to about $5.8 billion, while main cabin revenue fell 4% to about $6 billion.
Bastian said there is no sign of consumer pushback toward premium products.
Delta and other carriers have closed unprofitable or less profitable flights, such as on unpopular travel days in the middle of the week, to help prevent an oversupply of seats in the market. Changing consumer habits and higher costs have created a surplus of capacity. First slam-dunk summer profits more elusive For some US carriers.
Domestic unit revenue increased 2% in the third quarter due to a 4% increase in capacity, and Delta estimates it will be positive year-over-year in the current quarter. Strong corporate travel demand helped total domestic passenger revenue grow 5% in the third quarter.
Delta said it expects adjusted, full-year earnings of $6 per share in July, on the upper end of the $5.25 to $6.25 forecast for 2025.
When asked about the federal government shutdownBastian told the airline Have not seen “any effect” For its operation in recent times.
