Shares of Delta Air Lines (DAL) jumped over 5% in pre-market trading on Thursday after the company delivered a strong quarter and raised its full-year guidance. The airline reported Q3 operating revenue of $16.7 billion, surpassing the expected $15.7 billion. Meanwhile, Delta’s earnings per share (EPS) came in at $1.71 on an adjusted basis, exceeding the expected EPS of $1.52.
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Delta Sees Boost from Premium and Corporate Travel
In the third quarter, Delta’s strong performance was fueled by multiple high-profit revenue sources, with premium and corporate travel driving most of the growth. Total Q3 revenues grew by 4.1% year-over-year to $15.2 billion.
Notably, Premium revenue increased 9% year-over-year, highlighting the airline’s success in attracting high-value passengers. Corporate sales also rose 8% compared to the same quarter last year.
Additionally, passenger load factor (PLF) fell 1% to 86% compared with the same quarter last year. For the first nine months of 2025, the load factor came at 84%. For context, PLF is a key metric for airlines and is highly relevant for investors because it shows how efficiently an airline is filling its seats relative to its capacity. Below is a screenshot showing Delta’s PLF over the last few years.
Delta Air Lines Raises Full-Year Guidance
Looking ahead, Delta expects revenue to continue rising through the end of 2025, reflecting strong holiday travel trends. The airline primarily serves higher-income travelers, who remain willing to spend on trips despite ongoing economic uncertainty.
For Q4, Delta is projecting revenue growth of 2% to 4% in Q4 and expects adjusted EPS in the range of $1.60 to $1.90. For the full year, the company firmed up its guidance, now expecting EPS of $6, within the previous range of $5.25 to $6.25.
In April, Delta withdrew its full-year guidance, citing uncertainty around the impact of tariffs. Later in July, consumer and business demand had stabilized, allowing the airline to restore guidance, though at levels lower than originally forecast. Following the latest results, Chief Executive Ed Bastian said the airline is now back on track to meet its original expectations.
Is Delta a Good Stock to Buy Right Now?
According to TipRanks’ consensus, DAL stock has a Moderate Buy consensus rating based on 14 Buys assigned in the last three months. At $71.05, the average Delta Air Lines stock price target implies a 24.4% upside potential.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
