Outlook for December quarter operating margin of 10.5 to 12 percent with adjusted EPS of $1.60 to $1.90
Expect full year adjusted EPS of approximately $6, in the upper half of July guidance
Full year free cash flow outlook of $3.5 to $4 billion, in line with long-term targets
ATLANTA, Oct. 9, 2025 /PRNewswire/ -- Delta Air Lines (NYSE:DAL) today reported financial results for the September quarter and provided its outlook for the December quarter and full year 2025. Highlights of the September quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.
"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, Delta's chief executive officer.
"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."
September Quarter 2025 GAAP Financial Results
Operating revenue of $16.7 billion
Operating income of $1.7 billion with an operating margin of 10.1 percent
Pre-tax income of $1.8 billion with a pre-tax margin of 10.7 percent
Earnings per share of $2.17
Operating cash flow of $1.8 billion
Payments on debt and finance lease obligations of $459 million
Total debt and finance lease obligations of $14.9 billion at quarter end
September Quarter 2025 Non-GAAP Financial Results
Operating revenue of $15.2 billion
Operating income of $1.7 billion with an operating margin of 11.2 percent
Pre-tax income of $1.5 billion with a pre-tax margin of 9.8 percent
Earnings per share of $1.71
Operating cash flow of $1.8 billion
Financial Guidance1
FY 2025
Earnings Per Share
Approx. $6
Free Cash Flow ($B)
$3.5 - $4
Gross Leverage2
Less than 2.5x
4Q25
Total Revenue YoY
Up 2% - 4%
Operating Margin
10.5% - 12%
Earnings Per Share
$1.60 - $1.90
1Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures
2Adjusted debt to EBITDAR
Revenue Environment and Outlook
"Delta generated record September quarter revenue of $15.2 billion, up 4.1 percent year-over-year, reflecting the strength of our diverse, high margin revenue streams and improving Domestic fundamentals. Over the last 6 weeks, sales trends have accelerated across all geographies and in every advance purchase window, positioning Delta to finish the year with momentum. For the December quarter, we expect total revenue growth of 2 percent to 4 percent over last year's record performance, with healthy sequential unit revenue improvement driven by continued Domestic strength and meaningful improvement in Transatlantic unit revenue," said Glen Hauenstein, Delta's president.
Record September quarter revenue reflecting the strength of Delta's brand: September quarter total revenue increased 4.1 percent over prior year to a record $15.2 billion, led by premium, corporate and loyalty. Adjusted total unit revenue (TRASM) growth improved 3.5 points sequentially, with the September quarter up 0.3 percent over prior year. Consistent with previous disclosures, year-over-year comparisons for the September quarter benefitted from lapping last year's CrowdStrike-caused outage, including 2.6 points on total revenue growth and 1.1 points on total unit revenue growth. The December quarter outlook for revenue growth of 2 percent to 4 percent reflects healthy sequential improvement in underlying revenue and unit revenue trends.
Diverse, high-margin revenue streams leading growth: Delta's diversified revenue base contributed 60 percent of total revenue in the third quarter and grew double-digits year-over-year. Premium revenue grew 9 percent compared to the September quarter of 2024, with improvement across all products. Loyalty revenue increased 9 percent year-over-year as SkyMiles members continue to deepen engagement beyond flight. American Express remuneration of $2 billion grew 12 percent over prior year, driven by double-digit co-brand spend growth.
Improving Domestic revenue environment: Domestic passenger revenue grew 5 percent year-over-year, supported by an acceleration in corporate sales, continued strength in premium cabins and an inflection in main cabin unit revenue growth. Domestic unit revenue grew 2 percent over prior year during the quarter and is expected to remain positive in the December quarter.
Corporate sales* rebounding with sequential improvement across all sectors: Corporate sales were up 8 percent over prior year in the third quarter. Recent corporate survey results indicate that roughly 90 percent of companies expect their travel volume to increase or remain steady in 2026, 5 points higher than last year's survey at this time.
*Corporate sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period
Cost Performance and Outlook
"Our teams continue to deliver for our customers, achieving operational performance that has led the industry. Non-fuel unit cost growth was approximately flat compared to prior year, bringing year-to-date non-fuel unit cost growth to less than 2 percent, consistent with our low-single digit guidance at the start of the year even as we reduced capacity post summer to align to demand," said Dan Janki, Delta's chief financial officer.
September Quarter 2025 Cost Performance
Operating expense of $15.0 billion and adjusted operating expense of $13.5 billion
Adjusted non-fuel costs of $10.6 billion
Non-fuel CASM was 13.35¢, an increase of 0.3 percent year-over-year
Adjusted fuel expense of $2.6 billion was down 8 percent year-over-year
Adjusted fuel price of $2.25 per gallon decreased 11 percent year-over-year with a refinery benefit of 5¢ per gallon
Balance Sheet, Cash and Liquidity
"With strong cash generation through the year, we have paid down nearly $2 billion in debt year-to-date, bringing gross leverage to 2.4x at the end of the quarter," Janki said. "For the full year, we expect free cash flow of $3.5 to $4 billion. This outlook is within our long-term target range and enables us to pay down debt while continuing to reinvest in the business and return cash to shareholders."
Adjusted net debt of $15.6 billion at September quarter end, a reduction of $2.4 billion from the end of 2024
Payments on debt and finance lease obligations for the September quarter of $459 million
Weighted average interest rate of 4.5 percent with 95 percent fixed rate debt and 5 percent variable rate debt
Adjusted operating cash flow in the September quarter of $1.8 billion, and with gross capital expenditures of $1.1 billion, free cash flow was $833 million
Air Traffic Liability ended the quarter at $8.2 billion
Liquidity* of $6.9 billion at quarter-end, including $3.1 billion in undrawn revolver capacity
*Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities
September Quarter 2025 Highlights
Operations, Network and Fleet
Operated the most on-time airline year-to-date, leading competitive set in on-time departures and arrivals and network peers in completion factor1
Took delivery of 31 aircraft year-to-date and 12 in the September quarter, including the A330-900, A321neo and A220-300
Retired 6 aircraft during the September quarter, bringing the total to 20 retirements year-to-date
For the first time, Delta invited its SkyMiles Members and employees to choose two of its newest island destinations from New York-JFK: Sardinia and Malta, both launching in summer 2026
Announced new and expanded service in Austin beginning in late 2025 and in the first half of 2026, serving nearly 30 destinations and furthering strategic growth in the city into next year
Continued investment in the Transatlantic network with the announcement of new routes from Boston to Madrid and Nice, increased service to Barcelona and Milan, and new direct flights from Seattle to Barcelona and Rome, starting May 2026
Announced first ever U.S. carrier nonstop service from New York-JFK to Porto, Portugal, starting May 2026
Announced new Hong Kong route from LAX starting June 2026, expanding Transpacific connectivity to one of the top business travel and cargo markets globally
Culture and People
Accrued $986 million in profit sharing year-to-date towards next February's payout
Earned Great Place To Work® Certification™ for the seventh year based on the Trust Index survey of Delta Employees
Named No. 2 on the Forbes 2025 list of the World's Best Employers, up from No. 6 in 2024 and the only U.S. airline to rank in the top 100
Ranked No. 3 on the 2025 PEOPLE Companies that Care List, the only airline to make the list
Named the top American employer in Georgia, Michigan and Utah by Forbes in its seventh annual list of Best Employers by State
Received the Corporate Citizenship Award from the Boston Business Journal as one of the Most Charitable Companies in Massachusetts, the only airline to be recognized
Over 900 Delta people volunteered with the 9/11 Day organization in 15 cities across the U.S. on 9/11 to assemble meals for Americans facing food insecurity
Hosted annual Women Inspiring the Next Generation (WING) flight, bringing 130 girls to NASA's Kennedy Space Center, exposing girls to career opportunities in aviation
Customer Experience and Loyalty
Launched YouTube as the newest partner to join Delta's industry-leading in-flight entertainment experience, bringing access to ad-free content to customers across seatback screens and personal devices
More than 1 million SkyMiles Members linked their accounts with Uber, making it easier for customers to earn miles in their everyday activities
Led network peers in the Travel + Leisure 2025 World's Best Awards survey in its Readers' 10 Favorite Airlines in the U.S. of 2025 list
Expanded the advanced meal selection option to Delta Comfort customers on select international flights
Named the Best Airline Entertainment winner in the 2025 Rolling Stone Travel Awards, recognizing Delta's best-in-class content and entertainment offerings
Continued the roll out of fast, free Wi-Fi for SkyMiles Members with nearly 1,000 aircraft equipped
Unveiled SHOWCASE, a new, more valuable digital experience for managed corporate travel, rolling out to corporate accounts later this year and replacing the current Delta Professional site
Environmental Sustainability
Announced new partnership with Maeve Aerospace, Delta's fifth Sustainable Skies Lab revolutionary fleet partner, to advance the development of its hybrid-electric regional aircraft
In collaboration with Shell and Portland International Airport (PDX), Delta took delivery of Sustainable Aviation Fuel (SAF) into the PDX fuel system, marking the first commercial-scale SAF uplift at PDX
1FlightStats preliminary data for Delta flights system wide, Delta's competitive set (AA, UA, B6, AS, WN, and DL) and Delta's network peers (AA, UA, and DL) from Jan 1 - Sept 30, 2025. On-time is defined as A0
September Quarter 2025 Results
September quarter results have been adjusted primarily for third-party refinery sales and gains/losses on investments as described in the reconciliations in Note A.
GAAP
$ Change
% Change
($ in millions except per share and unit costs)
3Q25
3Q24
Operating income
1,684
1,397
287
21 %
Operating margin
10.1 %
8.9 %
1.2 pts
13 %
Pre-tax income
1,777
1,561
216
14 %
Pre-tax margin
10.7 %
10.0 %
0.7 pts
7 %
Net income
1,417
1,272
145
11 %
Diluted earnings per share
2.17
1.97
0.20
10 %
Operating revenue
16,673
15,677
996
6 %
Total revenue per available seat mile (TRASM) (cents)
21.09
20.58
0.51
2 %
Operating expense
14,989
14,280
709
5 %
Cost per available seat mile (CASM) (cents)
18.96
18.75
0.21
1 %
Fuel expense
2,570
2,747
(177)
(6) %
Average fuel price per gallon
2.26
2.51
(0.25)
(10) %
Operating cash flow
1,847
1,274
573
45 %
Capital expenditures
1,160
1,328
(168)
(13) %
Total debt and finance lease obligations
14,879
17,697
(2,818)
(16) %
Adjusted
$ Change
% Change
($ in millions except per share and unit costs)
3Q25
3Q24
Operating income
1,695
1,373
322
23 %
Operating margin
11.2 %
9.4 %
1.7 pts
19 %
Pre-tax income
1,483
1,254
229
18 %
Pre-tax margin
9.8 %
8.6 %
1.2 pts
14 %
Net income
1,120
971
149
15 %
Diluted earnings per share
1.71
1.50
0.21
14 %
Operating revenue
15,197
14,594
603
4.1 %
TRASM (cents)
19.22
19.16
0.06
0.3 %
Operating expense
13,502
13,221
281
2 %
Non-fuel cost
10,551
10,130
421
4 %
Non-fuel unit cost (CASM-Ex) (cents)
13.35
13.30
0.05
0.3 %
Fuel expense
2,559
2,771
(212)
(8) %
Average fuel price per gallon
2.25
2.53
(0.28)
(11) %
Operating cash flow
1,816
1,276
540
42 %
Free cash flow
833
95
738
NM
Gross capital expenditures
1,113
1,270
(157)
(12) %
Adjusted net debt
15,586
18,682
(3,096)
(17) %
About Delta Air Lines Through exceptional service and the power of innovation, Delta Air Lines (NYSE:DAL) never stops looking for ways to make every trip feel tailored to every customer.
There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,000 peak day Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other.
Delta served more than 200 million customers in 2024, safely, reliably and with industry-leading customer service innovation, and was recognized by J.D. Power this year for being No. 1 in Premium Economy Passenger Satisfaction. The airline also was recognized as the top U.S. airline by the Wall Street Journal and as North America's most on-time airline in 2024 and our people earned the Platinum Award for Operational Excellence from Cirium.
We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.
Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.
As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential.
A founding member of the SkyTeam alliance and powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta's premium product line is elevated by its unique partnership with Wheels Up Experience.
Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the awards from J.D. Power and Cirium, Delta has been recognized among Fast Company's Most Innovative Companies; the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; one of Glassdoor's Best Places to Work; the top carrier for business travelers by Business Travel News; and topped 5 categories, including the Best U.S. Airline award, in Forbes Travel Guide's Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded companies in the U.S. and the best U.S. airline by the Points Guy for the past seven years.
Forward Looking StatementsStatements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; our dependence on technology in our operations; increases in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta that operates the Trainer refinery; failure to receive the expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial and other covenants in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including costs related to compliance with renewable fuel standard regulations; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of environmental regulation, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.
Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.
DELTA AIR LINES, INC.
Consolidated Statements of Operations
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
(in millions, except per share data)
2025
2024
$ Change
% Change
2025
2024
$ Change
% Change
Operating Revenue:
Passenger
$ 13,506
$ 13,107
$ 399
3 %
$ 38,852
$ 38,079
$ 773
2 %
Cargo
233
196
37
19 %
654
574
80
14 %
Other
2,934
2,374
560
24 %
7,855
7,431
424
6 %
Total operating revenue
16,673
15,677
996
6 %
47,361
46,084
1,277
3 %
Operating Expense:
Salaries and related costs
4,443
4,231
212
5 %
12,928
12,035
893
7 %
Aircraft fuel and related taxes
2,570
2,747
(177)
(6) %
7,439
8,157
(718)
(9) %
Ancillary businesses and refinery
1,724
1,250
474
38 %
4,383
4,083
300
7 %
Contracted services
1,166
1,069
97
9 %
3,442
3,134
308
10 %
Landing fees and other rents
921
832
89
11 %
2,650
2,347
303
13 %
Regional carrier expense
649
600
49
8 %
1,913
1,731
182
11 %
Aircraft maintenance materials and outside repairs
667
627
40
6 %
1,904
1,990
(86)
(4) %
Passenger commissions and other selling expenses
645
643
2
— %
1,869
1,865
4
— %
Depreciation and amortization
614
643
(29)
(5) %
1,823
1,878
(55)
(3) %
Passenger service
485
463
22
5 %
1,397
1,339
58
4 %
Profit sharing
392
320
72
23 %
986
964
22
2 %
Aircraft rent
135
137
(2)
(1) %
408
