Delta’s earnings soared in the third quarter of 2025, supported by recovering demand for air travel and higher fares.
The airline reported an operating profit of $1.7bn, up 21% compared to the third quarter last year. Additionally, net income was up 11% to $1.4bn. Operating margin was up 1.2 percentage points to 10.1%.
During its earnings call, the airline’s CEO Ed Bastian said he expects around 60% of overall industry third-quarter profits to be “driven by Delta and the rest largely driven by United, and then you have everybody else”.
He said: “Since COVID, industry fundamentals have changed and Delta is driving a much higher level of quality experience – whether it’s reliability, the products and services we offer, our partners we’re bringing to the table, or our international expansion.”
The airline’s operating revenues rose 6% in the period to $16.7bn, outpacing operating expenses, which grew 5% to $15bn. Delta said this was led by premium and corporate travel, as well as its loyalty revenues. Premium and loyalty revenues both grew 9% during the quarter, while corporate sales were up 8%.
On the back of the positive results, Delta guided total revenues to be up 2-4% in the fourth quarter, compared with the same period last year. Operating margin was guided to be between 10.5% and 12%. Earnings for the quarter were guided to be between $1.60 and $1.90 per share.
For the full year, earnings were guided at approximately $6 per share and free cash flow is expected to be around $3.5bn and $4bn.
During the call, management said it expects positive trends to carry “at least through the beginning part of 2026”, adding that the year has the potential to be a “really strong year”.
The positive results come after the year opened with significant headwinds for Delta, due to aircraft incidents and the economic uncertainties of a US tariff war in the first half.
As of the quarter end, the airline’s total debt and finance lease obligations totalled $14.9bn, with a liquidity of $6.9bn. Gross leverage was brought down to 2.4x, with nearly $2bn paid down in debt, year-to-date.
Delta took delivery of 12 aircraft in the September quarter, including the A330-900, A321neo, and A220-300. Additionally, it retired six aircraft during the period.