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

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.

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

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

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.