Delta Sees Booking Momentum And No Impact From Government Shutdown

Core Viewpoint - Delta Air Lines is experiencing strong booking momentum and has reported positive financial results, indicating resilience despite external challenges such as the government shutdown [2][3]. Financial Performance - Delta reported operating revenue of $15.2 billion, an increase of 4% year-over-year. Net income, excluding items, was $1.12 billion, up 15%, translating to $1.71 per share, surpassing analyst expectations [5]. - Domestic revenue rose by 5% to approximately $9 billion, while transatlantic revenue decreased by 2% to $3 billion. Latin America revenue fell by 3% to $759 million, and Pacific revenue increased by 3% to $667 million [5]. - For the current quarter, Delta forecasts revenue growth of 2% to 4%, with an operating margin between 10.5% and 12% and earnings per share projected between $1.60 and $1.90 [7]. Market Reaction - Following the strong financial forecast, Delta's share price rose by 6% in pre-market trading, reaching $60.70 [6]. - Analysts view the report positively, with expectations that shares will react favorably due to the strong revenue outlook and management's confidence in continued momentum into 2026 [6][7]. Domestic Revenue Insights - The domestic revenue environment is improving, alleviating previous industry concerns. Domestic passenger revenue grew by 5% year-over-year, driven by an acceleration in corporate sales, strength in premium cabins, and improved main cabin unit revenue growth [8]. - Corporate sales specifically increased by 8%, indicating robust demand in the corporate travel segment [8]. Geographic Performance - The most encouraging update is the positive inflection in domestic Revenue per Available Seat Mile (RASM), with main cabin demand improving as low-end supply retrenches. Delta anticipates continued domestic strength in the fourth quarter and a meaningful improvement in transatlantic RASM [9].