Delta Air Lines (NYSE:DAL) shares jumped 5.9% after the airline delivered third-quarter earnings that exceeded analyst estimates and lifted its full-year outlook, pointing to improving travel demand and strong operational execution.
The carrier reported adjusted earnings per share of $1.71 for the September quarter, 18 cents above analyst expectations of $1.53. Revenue came in at $15.2 billion, surpassing the consensus forecast of $15.04 billion and up 4.1% year over year.
Delta now projects full-year adjusted earnings of about $6.00 per share, ahead of the $5.77 expected by analysts and toward the upper end of its prior guidance range.
“Delta’s competitive advantages and differentiation have never been more evident, and thanks to the hard work of our people, we continue to elevate the customer experience and extend our industry leadership,” said Ed Bastian, Delta’s chief executive officer. “We delivered September quarter results at the top end of our expectations on a combination of strong execution and improving fundamentals.”
The company’s broad mix of revenue streams played a key role in its performance, with premium revenue rising 9% year over year and loyalty revenue also climbing 9%. Remuneration from American Express reached $2 billion, a 12% increase from last year. Corporate sales recovered as well, growing 8% compared with the same quarter in 2024.
For the December quarter, Delta expects operating margins between 10.5% and 12% and adjusted earnings per share in the range of $1.60 to $1.90. Total revenue is forecast to grow 2% to 4% year over year.
The airline reaffirmed its full-year free cash flow target of $3.5 billion to $4 billion, in line with its long-term goals. Delta has already reduced its debt by nearly $2 billion this year, bringing gross leverage down to 2.4x by quarter-end.
Non-fuel unit costs edged up just 0.3% from a year earlier, while fuel expenses dropped 8%, with the average price per gallon falling 11% compared to the same period in 2024.
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