Story Stocks^®

Delta Airlines (DAL) delivered a strong Q3 performance that easily topped expectations, sending the stock sharply higher today. EPS came in at $1.71, up 14% yr/yr and well ahead of estimates, while revenue rose over 6% yr/yr to a Q3 record $16.67 bln. Adjusted unit revenue (TRASM) increased 0.3% yr/yr, representing a 3.5-point sequential improvement, reflecting both resilient pricing and improving travel demand. DAL’s strong Q3 results and upbeat Q4 guidance serve as a bullish indicator for the broader commercial airline industry as competitors prepare to announce their Q3 results.

• The airline’s Q4 EPS guidance of $1.60-$1.90 came in above expectations at the midpoint, while its revenue growth outlook of +2-4% also topped estimates.
• DAL highlighted strong momentum for the remainder of FY25 and into FY26, noting that sales trends have accelerated across all geographies and every advance purchase window over the past six weeks.
• Domestic operations were a bright spot, with unit revenue up 2% yr/yr driven by an 8% rise in corporate sales, ongoing strength in premium cabins, and an inflection in main cabin revenue growth. DAL expects domestic unit revenue to remain positive in Q4.
• Premium revenue climbed 9% yr/yr, and loyalty revenue also grew 9%, supported by a 12% increase in American Express (AXP) remuneration to $2 bln.
• The company noted that yr/yr comparisons were modestly aided by lapping last year’s CrowdStrike (CRWD) outage, which boosted total revenue growth by 2.6 points and unit revenue growth by 1.1 points.

Briefing.com Analyst Insight:

DAL’s Q3 results reinforced the effectiveness of its premiumization and diversification strategy, which continues to set it apart from peers. Stronger-than-expected guidance and accelerating demand trends suggest that DAL is benefiting from both leisure resilience and an improving corporate travel backdrop. While the favorable comparison to last year’s outage adds a small asterisk to the growth figures, the broader demand recovery and loyalty-driven revenue base are clear positives. Importantly, DAL’s strong results and confident outlook set an optimistic tone for the airline industry as peers prepare to report their own Q3 earnings. With operational efficiency improving and premium and Amex partnerships driving high-margin growth, DAL looks well-positioned heading into the key holiday travel season and early FY26.