Delta Air Lines Stock Earnings Reports

Delta delivered a strong September-quarter performance with revenue up 4% (third-quarter record $15.2B), pretax income of $1.5B, GAAP EPS of $1.71 and an 11.2% operating margin. Free cash flow was $830M in Q3 and $2.8B year-to-date; management updated full‑year free cash flow guidance to $3.5B–$4.0B and reiterated full‑year EPS of approximately $6 (upper half of prior guidance). December is expected to deliver a double‑digit operating margin and earnings comparable to September. Demand trends improved through the quarter, driven by a rebound in business travel, strong premium and loyalty engagement (premium revenue +9%, loyalty +9%), and diversified high‑margin revenue streams that now represent ~60% of total revenue. The American Express co‑brand remains a key earnings driver (Amex remuneration up 12% in the quarter to $2B and on track for >$8B this year). Operational execution and customer experience investments (lounges, connectivity, airport upgrades, fleet premiumization) remain a strategic focus. On costs and balance sheet, non‑fuel unit costs were roughly flat year‑over‑year (YTD non‑fuel unit cost growth <2%), the company generated strong operating cash flow, has paid down nearly $2B of debt YTD (gross leverage 2.4x), and opportunistically refinanced the SkyMiles term loan. Management expects industry capacity rationalization to persist, supporting a favorable supply/demand balance into 2026, and is focused on profitable growth, margin expansion, disciplined capital allocation and continued fleet renewal (≈40 deliveries this year and next). Key near‑term risks noted: transatlantic revenue weakness in 3Q that the company plans to address through earlier booking strategies and capacity adjustments, and potential impacts from the US government shutdown (estimated < $1M/day so far).