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S&P 500 Gains and Losses Today: Dell Retreats; Delta Leads Airlines Higher
Investopedia· 2025-10-09 21:10
Core Insights - Shares of an AI server maker experienced a reversal of some recent gains, indicating potential volatility in the sector [1] - Airline stocks saw an increase, driven by strong premium and corporate travel sales, which helped a major carrier exceed quarterly estimates [1] AI Server Maker - The recent performance of shares in the AI server manufacturing sector has shown fluctuations, with a notable reversal in gains [1] Airline Industry - A major airline carrier reported strong sales in premium and corporate travel, contributing to its ability to surpass quarterly earnings expectations [1]
Delta Expects to Get More Revenue from Premium Tickets Than the Main Cabin Soon
Investopedia· 2025-10-09 21:10
Core Insights - Delta Air Lines anticipates that revenue from premium airfare will surpass that from the main cabin within one to two quarters, reflecting a significant shift in consumer demand [1][7] - Premium airfare revenue increased by 9% year-over-year to $5.8 billion, while main cabin sales decreased by 4% to $6.1 billion [1][5] - The airline industry is experiencing a trend where affluent consumers are opting for better seating options, contributing to the decline in main cabin sales [2][3] Industry Trends - The shift towards premium products is evident, with airlines reducing capacity in the coach section and focusing on enhancing their premium offerings [3][7] - Delta's President Glen Hauenstein indicated that most of the airline's growth will come from premium sectors in the upcoming year [2][4] - Corporate travel has seen an uptick, which has positively impacted sales in the main cabin of domestic flights [5] Financial Performance - Delta's overall revenue grew by 6% year-over-year to $16.67 billion, exceeding expectations [5] - The company projects revenue growth of 2% to 4% year-over-year for the final quarter [5] - Delta's shares rose over 4% on the announcement, reflecting positive market sentiment, with a total gain of approximately 17% over the past year [6]
On October 7, the Nasdaq Listing and Hearing Review Council affirmed a decision by the Nasdaq Hearing Panel to delist the Company's securities, based on a failure to meet the minimum bid price requirement, without having to decide on the issue of "public
Thenewswire· 2025-10-09 21:10
Core Viewpoint - Femto Technologies Inc. has been affirmed for delisting from the Nasdaq Stock Market due to non-compliance with the Minimum Bid Price requirement, as determined by the Nasdaq Listing and Hearing Review Council [1][2] Group 1: Delisting Decision - The Nasdaq Listing and Hearing Review Council upheld the decision of the Nasdaq Hearing Panel to delist Femto's securities based on technical reasons related to the company's failure to meet the Minimum Bid Price requirement [2] - The Council indicated that the violation of the Bid Price Rule was sufficient grounds for the delisting, without needing to assess public interest considerations [2] Group 2: Future Actions - The company is contemplating a request for the Nasdaq Board of Directors to review the Council's decision, as permitted under Nasdaq Rule 5825 [2] - Femto may also pursue a review with the Securities and Exchange Commission and federal courts, while exploring listing options on other stock exchanges [3] Group 3: Operational Continuity - Despite the delisting, the company is committed to executing its recovery plan aimed at improving its capital structure and will continue its research and development activities [3] - Femto plans to promote sales of its products as scheduled, indicating ongoing operational efforts [3] Group 4: Company Overview - Femto Technologies Inc. is a femtech company focused on wellness technology, emphasizing AI-driven solutions to enhance well-being through innovative product development [4]
X @Investopedia
Investopedia· 2025-10-09 21:00
Delta Air Lines reported record third-quarter revenue and issued a rosy outlook, driven by higher premium and corporate travel sales. https://t.co/HPkuv1dwQL ...
Delta(DAL) - 2025 Q3 - Quarterly Report
2025-10-09 20:20
[Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section defines forward-looking statements, noting inherent risks and uncertainties that may cause actual results to differ materially - Statements about future estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments, or strategies are forward-looking statements[13](index=13&type=chunk) - Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations[13](index=13&type=chunk) - Known material risk factors are described in "Item 1A. Risk Factors" of the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[13](index=13&type=chunk) [Report of Independent Registered Public Accounting Firm](index=4&type=section&id=REPORT%20OF%20INDEPENDENT%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRM) Ernst & Young LLP reviewed interim financial statements, finding no material modifications for GAAP conformity - Ernst & Young LLP reviewed the condensed consolidated interim financial statements for the periods ended September 30, 2025 and 2024[17](index=17&type=chunk) - The auditors are not aware of any material modifications needed for the interim financial statements to conform with U.S. GAAP[17](index=17&type=chunk) - The consolidated balance sheet as of December 31, 2024, is fairly stated in all material respects[18](index=18&type=chunk) [Part I. Financial Information](index=5&type=section&id=Part%20I.%20Financial%20Information) [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Delta's unaudited condensed consolidated financial statements, providing a snapshot of financial position and performance [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) Balance Sheets show increased total assets and stockholders' equity, with a slight decrease in total liabilities | (in millions) | September 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $79,623 | $75,372 | | Total liabilities | $60,801 | $60,079 | | Total stockholders' equity | $18,822 | $15,293 | - Cash and cash equivalents increased to **$3,791 million** at September 30, 2025, from **$3,069 million** at December 31, 2024[22](index=22&type=chunk) - Air traffic liability increased to **$8,165 million** at September 30, 2025, from **$7,094 million** at December 31, 2024[22](index=22&type=chunk) [Condensed Consolidated Statements of Operations and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Delta reported increased operating revenue and net income for both three and nine months, driven by passenger revenue | (in millions, except per share data) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total operating revenue | $16,673 | $15,677 | $47,361 | $46,084 | | Total operating expense | $14,989 | $14,280 | $43,006 | $41,806 | | Operating Income | $1,684 | $1,397 | $4,355 | $4,278 | | Net Income | $1,417 | $1,272 | $3,786 | $2,614 | | Diluted Earnings Per Share | $2.17 | $1.97 | $5.80 | $4.04 | - Passenger revenue increased by **3%** for the three months ended September 30, 2025, and by **2%** for the nine months ended September 30, 2025, compared to the prior year periods[24](index=24&type=chunk) - Aircraft fuel and related taxes decreased by **6%** for the three months and **9%** for the nine months ended September 30, 2025, year-over-year[24](index=24&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities remained strong, while investing cash use increased and financing cash use decreased | (in millions) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $6,082 | $6,131 | | Net cash used in investing activities | $(3,458) | $(2,570) | | Net cash used in financing activities | $(2,074) | $(2,670) | | Net Increase in Cash, Cash Equivalents and Restricted Cash Equivalents | $550 | $891 | | Cash, cash equivalents and restricted cash equivalents at end of period | $3,971 | $4,286 | - Property and equipment additions (flight and ground) totaled **$(3,592) million** for the nine months ended September 30, 2025[27](index=27&type=chunk) - Payments on debt and finance lease obligations were **$(3,931) million** for the nine months ended September 30, 2025[27](index=27&type=chunk) [Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity significantly increased due to strong net income and comprehensive income, partially offset by dividends | (in millions) | Balance at Dec 31, 2024 | Balance at Sep 30, 2025 | | :--- | :--- | :--- | | Total Stockholders' Equity | $15,293 | $18,822 | | Retained Earnings | $8,783 | $12,126 | | Accumulated Other Comprehensive Loss | $(4,979) | $(4,858) | - Net income contributed **$3,787 million** to retained earnings during the nine months ended September 30, 2025[30](index=30&type=chunk) - Dividends declared totaled **$(318) million** for the nine months ended September 30, 2025[30](index=30&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) These notes provide detailed explanations for the unaudited condensed consolidated financial statements, offering context for key figures [NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=9&type=section&id=NOTE%201.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the basis of presentation for interim financial statements under GAAP, noting interim results are not indicative of the full year - The financial statements are prepared in accordance with GAAP for interim financial information and should be read with the 2024 Form 10-K[33](index=33&type=chunk) - Operating results for interim periods are not necessarily indicative of the entire year due to seasonal variations and fuel price volatility[34](index=34&type=chunk) - The company is assessing the impact of ASU No. 2025-06, "Targeted Improvements to the Accounting for Internal-Use Software," effective January 1, 2028[36](index=36&type=chunk) [NOTE 2. REVENUE RECOGNITION](index=9&type=section&id=NOTE%202.%20REVENUE%20RECOGNITION) This note details passenger and other operating revenue components, including loyalty programs and refinery sales | (in millions) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Passenger revenue | $13,506 | $13,107 | $38,852 | $38,079 | | Cargo | $233 | $196 | $654 | $574 | | Other revenue | $2,934 | $2,374 | $7,855 | $7,431 | | Total operating revenue | $16,673 | $15,677 | $47,361 | $46,084 | - Cash sales from marketing agreements related to the loyalty program were **$6.0 billion** for the nine months ended September 30, 2025, up from **$5.5 billion** in 2024[40](index=40&type=chunk) | (in millions) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Domestic Passenger Revenue | $26,521 | $26,033 | | Atlantic Passenger Revenue | $7,221 | $7,159 | | Latin America Passenger Revenue | $3,047 | $3,008 | | Pacific Passenger Revenue | $2,063 | $1,879 | [NOTE 3. FAIR VALUE MEASUREMENTS](index=11&type=section&id=NOTE%203.%20FAIR%20VALUE%20MEASUREMENTS) This note provides a breakdown of assets and liabilities measured at fair value, including cash, investments, and fuel hedge contracts | (in millions) | September 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash equivalents | $2,364 | $1,619 | | Restricted cash equivalents | $180 | $351 | | Long-term investments and related | $3,391 | $2,372 | | Fuel hedge contracts | $4 | $(17) | - The company recognized a gain of **$12 million** on fuel hedge contracts for the nine months ended September 30, 2025, compared to a gain of **$9 million** in the prior year[51](index=51&type=chunk) - Equity investments in private companies are classified as Level 3 due to unobservable inputs in their valuations[50](index=50&type=chunk) [NOTE 4. INVESTMENTS](index=12&type=section&id=NOTE%204.%20INVESTMENTS) This note details Delta's equity investments, including stakes in various airlines, which significantly increased | (in millions) | September 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Air France-KLM | $98 | $62 | | China Eastern | $199 | $155 | | Grupo Aeroméxico | $402 | $354 | | Hanjin KAL | $712 | $507 | | LATAM | $1,379 | $837 | | Unifi Aviation | $132 | $146 | | Wheels Up | $485 | $435 | | Other investments | $476 | $350 | | Total Equity investments | $3,883 | $2,846 | - Delta's equity investments increased by over **$1 billion** from December 31, 2024, to September 30, 2025[52](index=52&type=chunk) - The company extended contractual transfer restrictions on its investment in Wheels Up until May 2026[52](index=52&type=chunk) [NOTE 5. DEBT](index=13&type=section&id=NOTE%205.%20DEBT) This note summarizes Delta's outstanding debt, which decreased due to new unsecured note issuances and an amended SkyMiles Credit Facility | (in millions) | September 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total secured and unsecured debt | $14,173 | $15,373 | | Total debt | $14,174 | $15,347 | | Total long-term debt | $12,299 | $13,546 | - In June 2025, Delta issued **$2.0 billion** in unsecured notes (4.95% due 2028 and 5.25% due 2030) to repay the PSP loan due 2030 and for general corporate purposes[55](index=55&type=chunk) - The SkyMiles Credit Facility was amended in September 2025, refinancing term loans at a reduced margin of **1.50%** per annum and extending maturity to October 2028[56](index=56&type=chunk) - As of September 30, 2025, Delta had approximately **$3.1 billion** undrawn and available under its revolving credit facilities[57](index=57&type=chunk) [NOTE 6. EMPLOYEE BENEFIT PLANS](index=14&type=section&id=NOTE%206.%20EMPLOYEE%20BENEFIT%20PLANS) This note outlines net periodic costs for Delta's pension and other postretirement benefit plans, with mixed cost changes | (in millions) | Nine Months Ended Sep 30, 2025 (Pension) | Nine Months Ended Sep 30, 2024 (Pension) | | :--- | :--- | :--- | | Service cost | $125 | $116 | | Interest cost | $623 | $603 | | Expected return on plan assets | $(800) | $(789) | | Recognized net actuarial loss | $151 | $186 | | Net periodic cost | $99 | $116 | | (in millions) | Nine Months Ended Sep 30, 2025 (Other Postretirement) | Nine Months Ended Sep 30, 2024 (Other Postretirement) | | :--- | :--- | :--- | | Service cost | $99 | $69 | | Interest cost | $135 | $136 | | Expected return on plan assets | $(1) | $(2) | | Recognized net actuarial loss | $15 | $14 | | Net periodic cost | $245 | $214 | - Service cost for employee benefit plans is recorded in salaries and related costs, while other components are in miscellaneous, net non-operating expense[62](index=62&type=chunk) [NOTE 7. COMMITMENTS AND CONTINGENCIES](index=15&type=section&id=NOTE%207.%20COMMITMENTS%20AND%20CONTINGENCIES) This note details Delta's future aircraft purchase commitments, totaling **$16.0 billion**, and addresses legal contingencies - Future aircraft purchase commitments totaled approximately **$16.0 billion** at September 30, 2025[64](index=64&type=chunk) | Aircraft Type | Purchase Commitments | | :--- | :--- | | A220-300 | 66 | | A321-200neo | 71 | | A350-900 | 6 | | A350-1000 | 20 | | B-737-10 | 100 | | Total | 263 | - The company believes the resolution of current legal proceedings will not have a material adverse effect on its Condensed Consolidated Financial Statements[67](index=67&type=chunk) [NOTE 8. ACCUMULATED OTHER COMPREHENSIVE LOSS](index=16&type=section&id=NOTE%208.%20ACCUMULATED%20OTHER%20COMPREHENSIVE%20LOSS) This note presents the components of accumulated other comprehensive loss (AOCL), which decreased due to reclassifications into earnings | (in millions) | Balance at Jan 1, 2025 | Balance at Sep 30, 2025 | | :--- | :--- | :--- | | Pension and Other Benefit Liabilities | $(5,557) | $(5,398) | | Other | $42 | $41 | | Tax Effect | $536 | $499 | | Total | $(4,979) | $(4,858) | - Reclassifications into earnings for pension and other benefit liabilities amounted to **$122 million** (net of tax) for the nine months ended September 30, 2025[70](index=70&type=chunk) [NOTE 9. SEGMENTS](index=17&type=section&id=NOTE%209.%20SEGMENTS) This note provides financial information for Delta's Airline and Refinery segments, with the Airline segment dominating revenue and income - The refinery segment provides approximately **75%** of the airline's jet fuel consumption (**200,000 barrels per day**) through its own production and third-party agreements[71](index=71&type=chunk) | (in millions) | Airline (9M 2025) | Refinery (9M 2025) | Consolidated (9M 2025) | | :--- | :--- | :--- | :--- | | Operating revenue | $43,681 | $5,213 | $47,361 | | Operating income | $4,313 | $42 | $4,355 | | Capital expenditures | $3,537 | $55 | $3,592 | - Refinery operating income decreased to **$42 million** for the nine months ended September 30, 2025, from **$76 million** in the prior year, primarily due to lower pricing of refined products[121](index=121&type=chunk)[74](index=74&type=chunk) [NOTE 10. EARNINGS PER SHARE](index=19&type=section&id=NOTE%2010.%20EARNINGS%20PER%20SHARE) This note presents the computation of basic and diluted earnings per share (EPS), showing an increase for both three and nine months | (in millions, except per share data) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income | $1,417 | $1,272 | $3,786 | $2,614 | | Basic weighted average shares outstanding | 649 | 641 | 648 | 640 | | Diluted weighted average shares outstanding | 654 | 647 | 653 | 647 | | Basic earnings per share | $2.18 | $1.98 | $5.85 | $4.08 | | Diluted earnings per share | $2.17 | $1.97 | $5.80 | $4.04 | - Dilutive effect of share-based instruments was **5 million shares** for the nine months ended September 30, 2025[77](index=77&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=20&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Delta's financial condition and results, covering revenue, expenses, non-operating results, refinery, fleet, and liquidity [September 2025 Quarter Financial Highlights](index=20&type=section&id=September%202025%20Quarter%20Financial%20Highlights) Delta reported a strong September 2025 quarter with operating income increasing to **$1.7 billion**, driven by premium products and loyalty awards - Operating income for the September 2025 quarter was **$1.7 billion**, an increase of **$287 million** compared to September 2024[79](index=79&type=chunk) - Total revenue increased **$1.0 billion**, with passenger revenue up **$399 million**, driven by premium products and loyalty travel awards[80](index=80&type=chunk) - Total operating expense increased **$709 million (5%)**, primarily due to a **4%** capacity increase and higher employee costs, partially offset by lower aircraft fuel costs[81](index=81&type=chunk) - Liquidity as of September 30, 2025, was **$6.9 billion**, and operating activities generated **$1.8 billion** during the quarter[82](index=82&type=chunk)[83](index=83&type=chunk) [Results of Operations - Three Months Ended September 30, 2025 and 2024](index=21&type=section&id=Results%20of%20Operations%20-%20Three%20Months%20Ended%20September%2030,%202025%20and%202024) For the three months ended September 30, 2025, Delta saw **6%** revenue growth to **$16.7 billion**, while operating expenses rose **5%** to **$15.0 billion** [Total Operating Revenue](index=21&type=section&id=Total%20Operating%20Revenue%20(Three%20Months)) Total operating revenue for the three months increased by **$996 million (6%)** to **$16.7 billion**, driven by premium products and refinery sales | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase (Decrease) | % Increase (Decrease) | | :--- | :--- | :--- | :--- | :--- | | Passenger revenue | $13,506 | $13,107 | $399 | 3% | | Cargo | $233 | $196 | $37 | 19% | | Other | $2,934 | $2,374 | $560 | 24% | | Total operating revenue | $16,673 | $15,677 | $996 | 6% | - Premium products ticket revenue increased by **9% ($460 million)** to **$5,796 million**[87](index=87&type=chunk) - Loyalty travel awards revenue increased by **13% ($130 million)** to **$1,108 million**[87](index=87&type=chunk) [Passenger Revenue by Geographic Region](index=21&type=section&id=Passenger%20Revenue%20by%20Geographic%20Region%20(Three%20Months)) Domestic passenger revenue increased by **5%** on **4%** capacity growth, while international revenue saw mixed results | (in millions) | Sep 30, 2025 Passenger Revenue | % Increase (Decrease) | | :--- | :--- | :--- | | Domestic | $9,103 | 5% | | Atlantic | $2,977 | (2)% | | Latin America | $759 | (3)% | | Pacific | $667 | 3% | | Total | $13,506 | 3% | - Domestic capacity increased by **4%**, while load factor decreased by **2 points**[88](index=88&type=chunk) - Pacific region saw a **10%** increase in Passenger Mile (RPMs) and a **2 point** increase in Load Factor[88](index=88&type=chunk) [Other Revenue](index=22&type=section&id=Other%20Revenue%20(Three%20Months)) Other revenue increased by **$560 million (24%)** to **$2.9 billion**, driven by refinery sales and ancillary businesses | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase | % Increase | | :--- | :--- | :--- | :--- | :--- | | Refinery | $1,476 | $1,083 | $393 | 36% | | Loyalty program | $847 | $820 | $27 | 3% | | Ancillary businesses | $256 | $161 | $95 | 59% | | Miscellaneous | $355 | $310 | $45 | 15% | | Other revenue | $2,934 | $2,374 | $560 | 24% | - Loyalty program revenue, mainly from American Express cardholder spend and new acquisitions, increased by **3%**[92](index=92&type=chunk) - Miscellaneous revenue includes lounge access, codeshare agreements, and international joint venture partnership settlements[94](index=94&type=chunk) [Operating Expense](index=23&type=section&id=Operating%20Expense%20(Three%20Months)) Total operating expense increased by **$709 million (5%)** to **$15.0 billion**, driven by salaries, offset by **6%** lower fuel costs | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase (Decrease) | % Increase (Decrease) | | :--- | :--- | :--- | :--- | :--- | | Salaries and related costs | $4,443 | $4,231 | $212 | 5% | | Aircraft fuel and related taxes | $2,570 | $2,747 | $(177) | (6)% | | Ancillary businesses and refinery | $1,724 | $1,250 | $474 | 38% | | Landing fees and other rents | $921 | $832 | $89 | 11% | | Profit sharing | $392 | $320 | $72 | 23% | | Total operating expense | $14,989 | $14,280 | $709 | 5% | - The market price of jet fuel decreased by **8%**, leading to a **$177 million** reduction in aircraft fuel and related taxes, despite a **4%** increase in consumption[97](index=97&type=chunk) - Profit sharing increased by **$72 million** due to higher quarterly results[102](index=102&type=chunk) [Results of Operations - Nine Months Ended September 30, 2025 and 2024](index=24&type=section&id=Results%20of%20Operations%20-%20Nine%20Months%20Ended%20September%2030,%202025%20and%202024) For the nine months, total operating revenue increased **3%** to **$47.4 billion**, while operating expenses rose **3%** to **$43.0 billion** [Total Operating Revenue](index=24&type=section&id=Total%20Operating%20Revenue%20(Nine%20Months)) Total operating revenue for the nine months increased by **$1.3 billion (3%)** to **$47.4 billion**, driven by premium products and loyalty awards | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase (Decrease) | % Increase (Decrease) | | :--- | :--- | :--- | :--- | :--- | | Passenger revenue | $38,852 | $38,079 | $773 | 2% | | Cargo | $654 | $574 | $80 | 14% | | Other | $7,855 | $7,431 | $424 | 6% | | Total operating revenue | $47,361 | $46,084 | $1,277 | 3% | - Ticket - Premium products revenue increased by **7% ($1,025 million)** to **$16,402 million**[103](index=103&type=chunk) - Loyalty travel awards revenue increased by **12% ($342 million)** to **$3,140 million**[103](index=103&type=chunk) [Passenger Revenue by Geographic Region](index=24&type=section&id=Passenger%20Revenue%20by%20Geographic%20Region%20(Nine%20Months)) Domestic passenger revenue increased by **2%** on higher capacity, while international revenue increased **2%**, with Pacific region showing **10%** growth | (in millions) | Sep 30, 2025 Passenger Revenue | % Increase (Decrease) | | :--- | :--- | :--- | | Domestic | $26,521 | 2% | | Atlantic | $7,221 | 1% | | Latin America | $3,047 | 1% | | Pacific | $2,063 | 10% | | Total | $38,852 | 2% | - Domestic capacity increased by **4%**, while load factor decreased by **3 points**[105](index=105&type=chunk) - Pacific region RPMs increased by **18%** and load factor increased by **4 points**[105](index=105&type=chunk) [Other Revenue](index=24&type=section&id=Other%20Revenue%20(Nine%20Months)) Other revenue for the nine months increased by **$424 million (6%)** to **$7.9 billion**, driven by ancillary businesses and refinery revenue | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase | % Increase | | :--- | :--- | :--- | :--- | :--- | | Refinery | $3,680 | $3,520 | $160 | 5% | | Loyalty program | $2,509 | $2,451 | $58 | 2% | | Ancillary businesses | $710 | $554 | $156 | 28% | | Miscellaneous | $956 | $906 | $50 | 6% | | Other revenue | $7,855 | $7,431 | $424 | 6% | [Operating Expense](index=25&type=section&id=Operating%20Expense%20(Nine%20Months)) Total operating expense for the nine months increased by **$1.2 billion (3%)** to **$43.0 billion**, with salaries rising and fuel costs decreasing by **9%** | (in millions) | Sep 30, 2025 | Sep 30, 2024 | Increase (Decrease) | % Increase (Decrease) | | :--- | :--- | :--- | :--- | :--- | | Salaries and related costs | $12,928 | $12,035 | $893 | 7% | | Aircraft fuel and related taxes | $7,439 | $8,157 | $(718) | (9)% | | Contracted services | $3,442 | $3,134 | $308 | 10% | | Landing fees and other rents | $2,650 | $2,347 | $303 | 13% | | Regional carrier expense | $1,913 | $1,731 | $182 | 11% | | Total operating expense | $43,006 | $41,806 | $1,200 | 3% | - Aircraft fuel and related taxes decreased by **$718 million** due to a **13%** decrease in the market price per gallon of jet fuel[108](index=108&type=chunk) - The refinery generated a **one cent** benefit per gallon for the nine months ended September 30, 2025, compared to **two cents** per gallon in the prior year[108](index=108&type=chunk) [Non-Operating Results](index=26&type=section&id=Non-Operating%20Results) Total non-operating income, net, significantly improved to **$317 million**, primarily driven by a substantial gain on investments | (in millions) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | Favorable (Unfavorable) | | :--- | :--- | :--- | :--- | | Interest expense, net | $(521) | $(567) | $46 | | Gain/(loss) on investments, net | $1,007 | $(73) | $1,080 | | Loss on extinguishment of debt | $(26) | $(36) | $10 | | Miscellaneous, net | $(143) | $(146) | $3 | | Total non-operating income/(expense), net | $317 | $(822) | $1,139 | - Interest expense, net, decreased due to debt reduction initiatives, including **$3.9 billion** in payments on debt and finance lease obligations during the nine months ended September 30, 2025[114](index=114&type=chunk) - The gain on investments, net, was driven by changes in stock prices, foreign currency fluctuations, and other valuation techniques for equity investments[115](index=115&type=chunk) - The projected annual effective tax rate for 2025 is **24% to 25%**, excluding mark-to-market gains[117](index=117&type=chunk) [Refinery Segment](index=27&type=section&id=Refinery%20Segment) Delta's refinery segment, supplying **75%** of jet fuel, generated **$42 million** in operating income, a decrease due to lower product pricing - The refinery provides approximately **200,000 barrels per day**, or **75%** of Delta's jet fuel consumption[120](index=120&type=chunk) - Refinery operating income for the nine months ended September 30, 2025, was **$42 million**, down from **$76 million** in the prior year, primarily due to lower pricing of refined products[121](index=121&type=chunk)[123](index=123&type=chunk) | (in millions) | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Exchanged products | $549 | $1,147 | | Sales of refined products | $132 | $197 | | Sales to airline segment | $852 | $1,147 | | Third party refinery sales | $3,680 | $3,520 | | Operating revenue | $5,213 | $6,011 | | Operating income/(loss) | $42 | $76 | [Operating Statistics](index=27&type=section&id=Operating%20Statistics) Delta's operating statistics show **4%** increase in ASM and **2%** in RPM, with load factor decreasing and mixed TRASM/CASM results | Consolidated | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2025 | Nine Months Ended Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue passenger miles (in millions) ("RPM") | 67,621 | 66,310 | 189,717 | 185,757 | | Available seat miles (in millions) ("ASM") | 79,054 | 76,162 | 225,099 | 216,360 | | Passenger load factor | 86 % | 87 % | 84 % | 86 % | | Total revenue per available seat mile ("TRASM") | 21.09 ¢ | 20.58 ¢ | 21.04 ¢ | 21.30 ¢ | | Cost per available seat mile ("CASM") | 18.96 ¢ | 18.75 ¢ | 19.11 ¢ | 19.32 ¢ | | Fuel gallons consumed (in millions) | 1,138 | 1,096 | 3,226 | 3,093 | | Average price per fuel gallon | $2.26 | $2.51 | $2.31 | $2.64 | - Fuel consumption increased by **4%** for both the three and nine months ended September 30, 2025, consistent with capacity growth[124](index=124&type=chunk) - Average price per fuel gallon decreased by **10%** for the quarter and **12%** for the nine-month period year-over-year[124](index=124&type=chunk) [Fleet Information](index=28&type=section&id=Fleet%20Information) Delta's mainline fleet comprised **986 aircraft** with an average age of **14.8 years**, with commitments for **263 new aircraft** | Fleet Type | Total Current Fleet | Purchase Commitments | Options | | :--- | :--- | :--- | :--- | | A220-300 | 34 | 66 | - | | A321-200neo | 84 | 71 | 70 | | A350-900 | 38 | 6 | 10 | | A350-1000 | - | 20 | - | | B-737-10 | - | 100 | 30 | | Total Mainline | 986 | 263 | 120 | - The average age of the mainline fleet is **14.8 years**[126](index=126&type=chunk) | Regional Carrier | Total Aircraft | | :--- | :--- | | Endeavor Air, Inc. | 140 | | SkyWest Airlines, Inc. | 126 | | Republic Airways, Inc. | 57 | | Total Regional | 323 | [Financial Condition and Liquidity](index=29&type=section&id=Financial%20Condition%20and%20Liquidity) Delta maintained strong liquidity of **$6.9 billion**, continued debt reduction, and initiated a **$1.0 billion** share repurchase program [Sources and Uses of Liquidity](index=29&type=section&id=Sources%20and%20Uses%20of%20Liquidity) Delta's liquidity is primarily generated from operating activities, with investing and financing activities focused on capital and debt management [Operating Activities](index=29&type=section&id=Operating%20Activities%20(Liquidity)) Delta generated **$6.1 billion** in cash flows from operations, influenced by seasonal ticket sales, fuel prices, and SkyMiles program cash sales - Cash flows from operations were **$6.1 billion** for the nine months ended September 30, 2025[131](index=131&type=chunk) - Fuel expense represented approximately **17%** of total operating expense for the nine months ended September 30, 2025[133](index=133&type=chunk) - Total cash sales to American Express were **$5.9 billion** for the nine months ended September 30, 2025, a **10%** increase from the prior year[136](index=136&type=chunk) [Investing Activities](index=30&type=section&id=Investing%20Activities%20(Liquidity)) Capital expenditures for the nine months were **$3.6 billion**, with an expected total capital spend of approximately **$5.0 billion** for 2025 - Capital expenditures were **$3.6 billion** for the nine months ended September 30, 2025[138](index=138&type=chunk) - Expected 2025 capital spend is approximately **$5.0 billion**, primarily for aircraft, fleet modifications, and technology[138](index=138&type=chunk) [Financing Activities](index=30&type=section&id=Financing%20Activities%20(Liquidity)) Delta had **$3.9 billion** in debt repayments, issued **$2.0 billion** in unsecured notes, and authorized a **$1.0 billion** share repurchase program - Cash outflows for debt and finance lease obligations totaled **$3.9 billion** for the nine months ended September 30, 2025[139](index=139&type=chunk) - Moody's upgraded Delta's credit rating to Baa2 (investment grade) in February 2025, and Fitch Ratings upgraded its outlook to Positive in the September 2025 quarter[142](index=142&type=chunk) - Total cash dividends for the nine months ended September 30, 2025, were **$318 million**[143](index=143&type=chunk) - A **$1.0 billion** opportunistic share repurchase program was authorized in June 2025, with no shares repurchased through September 30, 2025[144](index=144&type=chunk) [Critical Accounting Estimates](index=30&type=section&id=Critical%20Accounting%20Estimates) No material changes in Critical Accounting Estimates from the 2024 Form 10-K - No material changes in Critical Accounting Estimates from the 2024 Form 10-K[146](index=146&type=chunk) [Supplemental Information](index=31&type=section&id=Supplemental%20Information) This section provides reconciliations of non-GAAP financial measures to GAAP, excluding certain items for a clearer view of core operations - Non-GAAP financial measures are used to provide comparability and better understanding of core performance, excluding items like third-party refinery sales, MTM adjustments on hedges, and profit sharing[148](index=148&type=chunk)[150](index=150&type=chunk) | (in millions) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Total revenue | $16,673 | $15,677 | | Third-party refinery sales | $(1,476) | $(1,083) | | Total revenue, adjusted | $15,197 | $14,594 | | (in millions) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | Operating expense | $14,989 | $14,280 | | Third-party refinery sales | $(1,476) | $(1,083) | | MTM adjustments and settlements on hedges | $(11) | $24 | | Operating expense, adjusted | $13,502 | $13,221 | | (cents) | Three Months Ended Sep 30, 2025 | Three Months Ended Sep 30, 2024 | | :--- | :--- | :--- | | CASM | 18.96 ¢ | 18.75 ¢ | | Aircraft fuel and related taxes | (3.25) | (3.61) | | Third-party refinery sales | (1.87) | (1.42) | | Profit sharing | (0.50) | (0.42) | | CASM-Ex | 13.35 ¢ | 13.30 ¢ | | (in millions) | Three Months Ended Sep 30, 2025 | | :--- | :--- | | Net cash provided by operating activities | $1,847 | | Net cash used in investing activities | $(1,035) | | Pension plan contributions | $6 | | Net cash flows related to certain airport construction projects and other | $15 | | Free cash flow | $833 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk from the 2024 Form 10-K - No material changes in market risk from the 2024 Form 10-K[157](index=157&type=chunk) [Item 4. Controls and Procedures](index=34&type=section&id=Item%204.%20Controls%20and%20Procedures) Delta's management concluded that disclosure controls and procedures were effective, with no material changes in internal control - Disclosure controls and procedures were effective as of September 30, 2025[158](index=158&type=chunk) - No material changes in internal control over financial reporting during the three months ended September 30, 2025[159](index=159&type=chunk) [Part II. Other Information](index=34&type=section&id=Part%20II.%20Other%20Information) [Item 1. Legal Proceedings](index=34&type=section&id=Item%201.%20Legal%20Proceedings) This section updates on the Capacity Antitrust Litigation, which is proceeding to class discovery, with Delta maintaining claims are without merit - The Capacity Antitrust Litigation, alleging conspiracy to restrain capacity, is proceeding to class discovery[161](index=161&type=chunk) - In September 2025, the Court denied the defendants' motion to certify the decision for an interlocutory appeal or for reconsideration[161](index=161&type=chunk) - Delta believes the claims are without merit and is vigorously defending the lawsuits[161](index=161&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A.%20Risk%20Factors) No material changes from the risk factors described in the 2024 Form 10-K - No material changes from the risk factors described in the 2024 Form 10-K[162](index=162&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=35&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details common stock purchases, primarily shares withheld for tax obligations, noting no repurchases under the **$1.0 billion** program | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | July 2025 | 3,566 | $49.42 | | August 2025 | 4,105 | $55.37 | | September 2025 | 23,848 | $60.54 | | Total | 31,519 | - | - Shares were withheld from employees to satisfy tax obligations in connection with grants of stock under the Performance Compensation Plan[164](index=164&type=chunk) - A **$1.0 billion** opportunistic share repurchase program was authorized in June 2025, but no shares were repurchased under it through September 30, 2025[165](index=165&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including organizational documents, a credit agreement amendment, and CEO/CFO certifications - Exhibit 10.1 is the Second Amendment to Term Loan Credit and Guaranty Agreement, entered into as of September 30, 2025, among SkyMiles IP Ltd., Delta Air Lines, Inc. and Barclays Bank PLC[169](index=169&type=chunk) - Exhibits 31.1 and 31.2 are certifications by Delta's Chief Executive Officer and Chief Financial Officer, respectively, for the quarterly report[169](index=169&type=chunk) [Signature](index=37&type=section&id=Signature) This section contains the signature of William C. Carroll, Senior Vice President - Controller, certifying the report - The report was signed by William C. Carroll, Senior Vice President - Controller (Principal Accounting Officer) on October 9, 2025[172](index=172&type=chunk)
Delta Air Lines Shares Rally After Earnings Beat And Guidance Raise
Financial Modeling Prep· 2025-10-09 19:19
Core Insights - Delta Air Lines reported stronger-than-expected third-quarter results, with adjusted earnings per share of $1.71, exceeding analyst expectations of $1.53 by 18 cents, and revenue of $15.2 billion, surpassing the consensus forecast of $15.04 billion, reflecting a year-over-year increase of 4.1% [1] - The company raised its full-year adjusted earnings guidance to approximately $6.00 per share, above analysts' expectations of $5.77, and projected operating margins for the December quarter between 10.5% and 12% [2] - Delta reaffirmed its full-year free cash flow target of $3.5 billion to $4 billion and noted a reduction in debt by nearly $2 billion year-to-date, resulting in a gross leverage ratio of 2.4x by the end of the quarter [3]
Delta Air Lines' Earnings Surpass Expectations
Financial Modeling Prep· 2025-10-09 18:00
Core Insights - Delta Air Lines reported an earnings per share (EPS) of $1.71, exceeding the estimated EPS of $1.52, while revenue of $15.2 billion fell short of the expected $15.96 billion [1][6] - Despite the revenue miss, Delta's stock price surged nearly 7% due to better-than-expected third-quarter results and a positive outlook for the travel sector [2][6] - The company raised its full-year earnings guidance, supported by a surge in travel demand, leading to record revenue [3] Financial Performance - Delta's adjusted revenue of $15.2 billion for the September quarter marked a 4.1% increase from the previous year, surpassing analyst expectations of $15.08 billion [2] - The price-to-earnings (P/E) ratio is approximately 6.18, indicating the stock is undervalued relative to its earnings [4] - The earnings yield is about 16.19%, showcasing a solid return on investment for shareholders [5] Financial Health - The debt-to-equity ratio is approximately 0.83, indicating a balanced use of debt and equity in financing its assets [5] - The current ratio of about 0.40 suggests a need for improvement in covering short-term liabilities with short-term assets [5]
Delta Air Lines Earnings Review: Good Quarter, Just Don't Overpay (NYSE:DAL)
Seeking Alpha· 2025-10-09 17:39
Core Insights - The article emphasizes a value investing approach, focusing on an owner's mindset and a long-term investment horizon [1] Group 1 - The author does not engage in writing sell articles, as they are viewed as short theses, and does not recommend shorting stocks [1] - The author has no current stock, option, or derivative positions in any mentioned companies and does not plan to initiate any within the next 72 hours [2] - The article reflects the author's personal opinions and is not influenced by any business relationships with the companies mentioned [2] Group 2 - Past performance of investments is not indicative of future results, and no specific investment recommendations are provided [3] - The views expressed may not represent the overall opinions of Seeking Alpha, and the analysts are independent authors, not necessarily licensed or certified [3]
Delta Air Lines Earnings Review: Good Quarter, Just Don't Overpay
Seeking Alpha· 2025-10-09 17:39
Core Viewpoint - The article emphasizes a value investing approach with a focus on long-term horizons and an owner's mindset, avoiding short-selling recommendations [1]. Group 1 - The analysis is based on value investing principles, which prioritize the intrinsic value of securities over short-term market fluctuations [1]. - The author does not engage in short-selling or provide sell recommendations, indicating a commitment to long-term investment strategies [1]. - The article reflects the author's independent research and opinions, with no external compensation influencing the content [2]. Group 2 - There is a clear disclosure that the author holds no positions in the mentioned companies and has no plans to initiate any within a short timeframe [2]. - The article does not provide specific investment advice or recommendations, aligning with Seeking Alpha's broader policy on investment suitability [3]. - The content is authored by an individual who may not be licensed or certified, highlighting the importance of independent research in investment decisions [3].
Stock market lulls as Tesla slides and Delta soars
Fastcompany· 2025-10-09 17:30
Market Overview - U.S. stocks are experiencing a pullback after reaching record highs, with the S&P 500 down 0.2% and the Dow Jones Industrial Average down 145 points or 0.3% [1][2] - Gold prices have also declined following a strong rally this year, while Treasury yields remain steady [2] Stock Performance - The S&P 500 has surged approximately 35% since April, raising concerns about overvaluation, particularly in AI-related stocks [3] - Tesla's stock fell 2% due to a preliminary evaluation of its "Full Self-Driving" system by the National Highway Traffic Safety Administration [4] - Delta Air Lines saw a 4.9% increase in stock price after reporting stronger-than-expected summer profits and a positive full-year profit forecast [4][5] - PepsiCo's stock rose 2.1% after exceeding profit expectations, indicating improved momentum in its North American drinks business [7] - Akero Therapeutics jumped 16.7% following an acquisition announcement by Novo Nordisk, potentially valued at $5.2 billion [8] - MP Materials increased by 7.1% after China announced export curbs on rare earth materials [8] - Costco Wholesale's stock climbed 2.4% after reporting an 8% revenue increase in September compared to the previous year [9] Economic Indicators - Company reports are gaining significance as the U.S. government shutdown delays key economic data, including unemployment claims [6] - The yield on the 10-year Treasury remains at 4.13%, indicating stability in the bond market [11] International Markets - European stock indexes showed mixed results, with Italy's Ferrari dropping 14.1% after disappointing financial forecasts [9] - Japan's Nikkei 225 rose 1.8%, with SoftBank Group surging 11.4% following a $5.4 billion acquisition deal [10]