Delta Air Lines surged higher Thursday after rebounding travel trends drove Q3 results above views. Rival United Airlines chased Delta's upswing, while American Airlines reversed from its early gain. But airports across the country are facing staff shortages and delays during the government shutdown.
Delta Air Lines reported a 14% increase in earnings to $1.71 per share adjusted on 4.1% revenue growth to a record $15.2 billion adjusted.
Analysts polled by FactSet expected earnings of $1.53 per share on $15.08 billion in revenue.
On a non-adjusted basis, operating revenue rose to $16.7 billion.
Industry fundamentals had improved and momentum was continuing, CEO Ed Bastian said in the release. That sets the company up "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."
Adjusted total unit revenue rose 3.5% from last quarter, and ticked up 0.3% from last year.
Domestic passenger revenue increased 5% from last year, driven by accelerating corporate sales, premium cabin strength, and an inflection in main cabin unit revenue growth.
CFO Dan Janki noted that Delta has paid down almost $2 billion in debt so far this year. At quarter-end, Delta reported $14.9 billion in total debt and finance lease obligations
For the fourth quarter, Delta expects revenue to increase 2% to 4%. The company expects earnings to range from $1.60 to $1.90 per share.
Delta also narrowed its full-year earnings outlook. The airline initially pulled its guidance back in April and reinstated it for its June-quarter results as travel demand and the business stabilized. For 2025, Delta expects earnings of about $6 per share, with free cash flow between $3.5 billion and $4 billion. Delta's Q2 guidance called for full-year earnings between $5.25 and $6.25 per share.
"I'm glad to see we're out of it. We're back on track to where we were looking to be originally," Bastian told the Wall Street Journal. "I anticipate for the fourth quarter we will see, hopefully, the best fourth-quarter performance in our history."
Delta Stock Leads Airline Rally
DAL stock jumped 4.3% Thursday, to rebound above its 50-day line and 21-day exponential moving average.
Delta has backed away from an early September high and has established a bottom for a flat base. The traditional buy point for the pattern is at 63.91, Delta's Sept. 3 high.
DAL stock has pared its decline on the year to 1.6%.
American Airlines shares swung 3.2% higher early Thursday, then reversed for a 1.7% decline on the day after attempting to rebound above its 50-day line. AAL stock has tumbled 33% in 2025.
United Airlines climbed above technical support with a 3.3% advance Thursday. United is back in positive territory for the year, up 4.4%.
Flight Delays Amid Shutdown
Meanwhile, flights have been delayed across the country this week as the Federal Aviation Administration contends with airport staffing shortages during the government shutdown. Shortages began on Monday as staff began working without pay due to the shutdown. The FAA on Wednesday said that flights saw delays for the third straight day.
Major airports have been hit by the delays, including Ronald Reagan Washington National Airport. The agency also reportedly ordered a reduction in the number of flights in and out of Orlando International Airport and Newark Liberty International Airport.
There have also been reports of delays due to a lack of air traffic controllers at airports in Boston, Chicago, Denver, Houston, Las Vegas, Philadelphia, Phoenix, Tennessee and California.
The National Air Traffic Controllers Association in a Tuesday note on its website said it does not "endorse, support or condone" any federal employees participating in or endorsing coordinated activities that negatively affect the National Airspace System. Participating in any such actions could result in removal from federal service, the NATCA said.
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