Core Viewpoint - Delta Airlines is expected to report solid third-quarter earnings, with analysts predicting adjusted earnings per share of $1.57 on revenue of nearly $16 billion, reflecting a significant recovery since April's lows [1][3]. Earnings Expectations - Analysts anticipate a strong quarter for Delta, supported by positive demand trends observed since mid-summer [3][4]. - The sustainability of domestic demand will be a key focus in the earnings report, especially considering the extended shoulder season into fall [5][6]. Market Positioning - Delta is well-positioned compared to its peers, particularly due to its exposure to the premium segment, which has shown resilience and higher margins despite previous demand weaknesses [9]. - The balance of capacity to demand is crucial for maintaining price support as the year concludes [6][9]. Trading Strategies - Two bullish trading strategies for Delta have been proposed ahead of the earnings report: 1. A more aggressive strategy involves buying an in-the-money call vertical with a $1.80 debit, targeting a potential profit of $3.20 if the stock exceeds $61 [12][13]. 2. A lower-risk strategy involves a bullish call calendar, costing approximately $0.60, which allows for profitability within a range of $57.58 to $66 [16][17].