Earnings Beat and Raised Guidance

Delta Air Lines (NYSE: DAL) posted strong third-quarter results on Thursday, beating analyst estimates and delivering upbeat guidance for the remainder of the year.

Adjusted EPS: $1.71 vs. $1.53 est. (FactSet consensus)
Revenue: $15.2B, up 4% Y/Y and above the $15.1B estimate
Shares: +6% post-earnings on upbeat commentary and margin strength

The company’s earnings were 14% higher year-over-year, rebounding from disruptions tied to CrowdStrike’s (CRWD) global IT outage last year.

Fourth Quarter and Full-Year Outlook

For Q4, Delta expects adjusted EPS between $1.60–$1.90, with the midpoint ($1.75) ahead of Street estimates of $1.65.

FY2025 EPS outlook narrowed to $6, compared with prior guidance of $5.25–$6.25.
However, this remains below the $7.35 per share the company projected at the start of the year.

Delta said demand trends have improved, particularly among premium travelers, and its credit card business with American Express (AXP) remains a key profit engine.

Revenue Mix and Key Drivers

Premium ticket revenue: $5.8B (+9% Y/Y)
Main cabin revenue: $6.1B (-4% Y/Y)
Amex partnership revenue: $2B (+12% Y/Y) for the third consecutive quarter

Industry experts estimate ~50% profit margins on airline credit card programs.

CEO Ed Bastian told CNBC that the airline has not yet seen any material impact from the ongoing U.S. government shutdown, which has affected travel times at several airports.

Strategic Developments

Last month, Delta was ordered by the Trump administration to dissolve its nine-year joint venture with Aeromexico by year-end. Despite that, management reaffirmed that long-haul travel demand and corporate bookings remain healthy.

Market Reaction

Delta’s strong results sent airline stocks higher in early trading, signaling renewed optimism in the travel sector despite macro uncertainty.