Delta(US:DAL) Prnewswireยท2025-10-09 10:30Core Insights - Delta Air Lines reported record revenue of $15.2 billion for the September quarter, reflecting a 4.1% year-over-year increase, driven by strong execution and improving fundamentals [4][8] - The company expects an operating margin of 10.5% to 12% for the December quarter, with adjusted EPS projected between $1.60 and $1.90 [3][4] - Full-year adjusted EPS is anticipated to be approximately $6, aligning with the upper half of previous guidance, and free cash flow is expected to be between $3.5 billion and $4 billion [3][9] Financial Performance - Total revenue for the September quarter was $16.7 billion, with an operating income of $1.7 billion and an operating margin of 10.1% [7][13] - Year-over-year comparisons showed a 21% increase in operating income and a 14% increase in pre-tax income [13][15] - Adjusted net debt decreased by $2.4 billion from the end of 2024, bringing total debt to $15.6 billion at the end of the quarter [14][9] Revenue Environment - Delta's diverse revenue streams contributed significantly, with premium revenue growing 9% and loyalty revenue also increasing by 9% year-over-year [8][4] - Domestic passenger revenue rose by 5%, supported by strong corporate sales and premium cabin performance [8][4] - Corporate sales increased by 8% year-over-year, with expectations of stable or increasing travel volumes among 90% of surveyed companies for 2026 [8][4] Cost Performance - Non-fuel unit cost growth remained flat compared to the prior year, with year-to-date growth at less than 2% [5][14] - Adjusted fuel expense decreased by 8% year-over-year, with an average fuel price of $2.25 per gallon, down 11% from the previous year [14][15] Outlook - The company anticipates total revenue growth of 2% to 4% for the December quarter compared to last year's record performance [4][8] - Delta is positioned for continued top-line growth, margin expansion, and earnings improvement consistent with its long-term financial framework [2][4]