Delta Air Lines Reports Strong Q3 2025 Results
Key Points
- Operating revenue: $16.7 billion (GAAP) and $15.2 billion adjusted, both up 6% and 4.1% year over year, respectively.
- Net income: $1.42 billion (GAAP), up 11% year over year; Adjusted EPS: $1.71 (+14%).
- Operating income: $1.7 billion; operating margin: 10.1% GAAP, 11.2% adjusted.
- Free cash flow: $833 million in Q3; full-year outlook $3.5–$4 billion.
- Full-year adjusted EPS guidance: approximately $6, upper half of July guidance.
- Q4 2025 outlook: revenue up 2–4% YoY, operating margin 10.5–12%, adjusted EPS $1.60–$1.90.
- Total debt: $14.9 billion, down 16% year over year.
- Stock reaction: Shares closed up $3.06 (+7.8%) at $42.30.
Quarter Highlights
- Record September quarter revenue: $15.2 billion adjusted (+4.1% YoY).
- Premium and loyalty strength: Premium revenue +9%; loyalty revenue +9%; American Express remuneration $2.0 billion (+12%).
- Domestic performance: Passenger revenue +5% YoY; corporate sales +8% YoY, supported by premium cabin demand and recovering business travel.
- Fuel costs: $2.6 billion, down 8% YoY; average fuel price $2.25/gallon (-11%).
- Non-fuel CASM: up only 0.3% YoY, reflecting strong cost discipline.
- Operating cash flow: $1.8 billion; gross capital expenditures: $1.1 billion.
- Adjusted net debt: $15.6 billion, a reduction of $2.4 billion since year-end 2024.
- Profit sharing: $986 million accrued year-to-date for employees.
CEO Statement and Outlook
“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. We delivered September quarter results at the top end of our expectations on a combination of strong execution and improving fundamentals,” said Ed Bastian, CEO of Delta Air Lines.
“Momentum is continuing into the final stretch of our Centennial year, positioning us to deliver strong December quarter earnings. Looking to 2026, Delta is well positioned to deliver top-line growth, margin expansion and earnings improvement consistent with our long-term financial framework.”
Financial Summary
| Metric | Q3 2025 | Q3 2024 | Change |
|---|---|---|---|
| Operating Revenue (GAAP) | $16.67 B | $15.68 B | +6% |
| Operating Revenue (Adjusted) | $15.20 B | $14.59 B | +4.1% |
| Operating Income | $1.68 B | $1.40 B | +21% |
| Net Income | $1.42 B | $1.27 B | +11% |
| EPS (GAAP) | $2.17 | $1.97 | +10% |
| Adjusted EPS | $1.71 | $1.50 | +14% |
| Pre-tax Margin (Adjusted) | 9.8% | 8.6% | +1.2 pts |
| Free Cash Flow | $833 M | $95 M | — |
| Average Fuel Price per Gallon | $2.25 | $2.53 | -11% |
| Adjusted Net Debt | $15.6 B | $18.7 B | -17% |
Capital Return
- Continued debt reduction; nearly $2 billion paid down year-to-date.
- No new dividend or share repurchase program changes announced.
- Management reaffirmed focus on maintaining leverage below 2.5x and returning cash to shareholders.
About Delta Air Lines
Delta Air Lines (NYSE: DAL) operates more than 5,000 daily flights to over 300 destinations across six continents. Headquartered in Atlanta, Delta employs more than 100,000 people globally and serves over 200 million customers annually. The company is a founding member of the SkyTeam alliance and partners with airlines including Air France–KLM, LATAM, Virgin Atlantic, and Korean Air. Delta continues to lead the industry in operational performance, customer satisfaction, and sustainability initiatives.