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Delta Exceeds Q3 2025 Earnings Expectations, Shares Climb
9 Oct
Summary
- Delta's Q3 2025 revenue up 6% YoY to $16.7B
- Adjusted EPS of $1.71 beats consensus estimate of $1.52
- Airline's diverse, high-margin revenue streams drive strong results
On October 9th, 2025, Delta Air Lines reported its third-quarter 2025 earnings, showcasing a strong financial performance that exceeded market expectations. The airline posted operating revenue of $16.7 billion, marking a 6% year-over-year increase. GAAP EPS came in at $2.17, a 10% rise from the previous year, while adjusted EPS was $1.71, surpassing the consensus estimate of $1.52.
The airline's diverse, high-margin revenue streams, which now account for 60% of total operating revenue, were the key drivers behind the strong results. Passenger revenue increased by 3% year-over-year, driven by a 9% rise in premium products and a 13% jump in loyalty travel awards. Delta also experienced a significant increase in ancillary revenue, which rose by 59% compared to the same period last year.
The airline's continued focus on customer loyalty and premium services contributed significantly to its revenue growth. Delta reported operating cash flow of $1.8 billion for the third quarter of 2025, up 42% from the same period last year, and free cash flow surged to $833 million, compared to just $95 million in the third quarter of 2024.
