Delta Air Lines Reports Record Q3 Revenue As Demand Strength And Premium Growth Offset Higher Fuel Costs
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Delta Air Lines reported record September quarter revenue as broad demand strength, healthy yields, premium growth, and diversified revenue streams helped the airline absorb a significant increase in fuel costs. GAAP operating revenue reached $20.2 billion in the September quarter, while adjusted operating revenue totaled $17.6 billion. Adjusted revenue increased 16% year-over-year on essentially flat capacity, reflecting stronger pricing and demand across Delta's domestic and international network. Adjusted pre-tax income was $1.5 billion, up slightly from the prior-year period, while adjusted net income increased to $1.13 billion. Adjusted earnings per share reached $1.72, compared with $1.70 a year earlier. Delta said the quarter's performance demonstrated the durability of its business model even as adjusted fuel expense increased 62% year-over-year. The airline generated $1.7 billion of operating cash flow during the quarter and $463 million of free cash flow. Year-to-date free cash flow reached $1.9 billion. Delta expects approximately $2.5 billion of free cash flow for the full year and plans to repay more than $2 billion of debt during 2026. Adjusted net debt ended the September quarter at $13.4 billion, down approximately $950 million from the end of 2025. Delta ended the quarter with $6.9 billion of liquidity, including $3.1 billion of undrawn revolving credit...
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