Delta's profit forecast tops estimates, buoyed by higher fares and resilient luxury demand

CNBC
CNBC
3M ago
Delta Air Lines is positioned for continued growth, driven by strong demand in the premium travel segment.
Delta's profit forecast tops estimates, buoyed by higher fares and resilient luxury demand

Key insights

  • 1

    Strong Premium Travel Demand: Premium travel revenue continues to outperform coach class, indicating robust demand.

  • 2

    Positive Earnings Forecast: Delta projects adjusted earnings of $1.60 to $1.90 per share for Q4.

  • 3

    Increased Domestic Revenue: Domestic unit revenue rose 2% in Q3, reflecting improved demand.

A What happened
Delta Air Lines reported an 11% increase in third-quarter profit, reaching $1.42 billion, or $2.17 per share, exceeding analyst expectations. The airline forecasts a strong finish to 2025, projecting adjusted earnings of $1.60 to $1.90 per share for the fourth quarter, compared to the $1.65 expected by analysts. Revenue is expected to grow by up to 4%, driven by resilient demand for premium travel, which saw a 9% increase in revenue. Domestic unit revenue also rose by 2%, supported by a 5% increase in overall domestic passenger revenue. CEO Ed Bastian noted that there are no signs of a consumer pullback in premium products, and Delta is well-positioned for continued growth and margin expansion into 2026.

Topics

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