Delta Air Lines (DAL) Q3 2025 Financial Results Summary
Delta Air Lines announced its financial results for the September quarter on October 9, 2025. Below is a summary of the key metrics and highlights from the report:
Financial Performance Highlights
September Quarter 2025 GAAP Financial Results
- Operating Revenue: $16.7 billion, up 6% from Q3 2024 ($15.7 billion).
- Operating Income: $1.7 billion, an increase of 21% compared to $1.4 billion last year.
- Operating Margin: 10.1%, improved by 1.2 percentage points year-over-year (Q3 2024: 8.9%).
- Pre-Tax Income: $1.8 billion, an increase of 14% from $1.6 billion.
- Pre-Tax Margin: 10.7%, an increase of 0.7 percentage points compared to last year (Q3 2024: 10.0%).
- Earnings Per Share (EPS): $2.17, a rise of 10% from $1.97.
- Operating Cash Flow: $1.8 billion, up 45% from $1.3 billion in Q3 2024.
- Total Debt and Finance Lease Obligations: $14.9 billion, a decrease of 16% from $17.7 billion.
September Quarter 2025 Non-GAAP Financial Results
- Adjusted Operating Revenue: $15.2 billion, an increase of 4.1% from $14.6 billion.
- Adjusted Operating Income: $1.7 billion, up 23% from $1.4 billion.
- Adjusted Operating Margin: 11.2%, improved by 1.7 percentage points year-over-year (Q3 2024: 9.4%).
- Adjusted Earnings Per Share: $1.71, an increase of 14% from $1.50.
Revenue Environment and Outlook
- Total Revenue Growth: Up 4.1% year-over-year, reaching a record of $15.2 billion.
- Domestic Passenger Revenue: Grew by 5%, largely due to increased corporate sales and premium cabin demand.
- Corporate Sales: Increased by 8% compared to Q3 2024.
December Quarter Guidance
- Total Revenue Growth: Expected to increase by 2% to 4% year-over-year.
- Operating Margin: Projected between 10.5% and 12%.
- Adjusted EPS: Forecasted between $1.60 and $1.90.
Cost Performance and Financial Summary
- Operating Expenses: $15.0 billion, an increase of 5% from $14.3 billion.
- Non-Fuel unit cost (CASM): 13.35 cents per available seat mile, up 0.3% year-over-year.
- Adjusted Fuel Expense: $2.6 billion, down by 8% from the previous year.
Balance Sheet and Cash Flow
- Adjusted Net Debt: $15.6 billion, down 17% from $18.7 billion at the end of 2024.
- Free Cash Flow: $833 million, significantly up from $95 million in Q3 2024.
- Liquidity: $6.9 billion, including $3.1 billion in undrawn revolver capacity.
Dividend and Share Repurchase
- Dividends Paid: $122 million in Q3 2025 (a 27% increase from $96 million in Q3 2024).
- Share Repurchase: Details on specific share repurchase programs were not disclosed in the results.
Operational Highlights
- On-Time Performance: Delta operated as the most on-time airline year-to-date.
- Fleet Updates: Delivered 12 new aircraft in the September quarter.
- Community Engagement: Over 900 employees volunteered to assist food-insecure Americans on 9/11.
Conclusion
Delta Air Lines delivered strong financial results for Q3 2025, marked by record revenue, improved margins, and positive cash flow. The outlook for the upcoming quarter reflects continued momentum and operational efficiencies. Delta remains committed to leveraging its competitive advantages while fostering growth across its diverse revenue channels.
Consolidated Statements of Operations
(in millions)
| Three Months Ended Sept 30, 2025 | Three Months Ended Sept 30, 2024 | $ Change | % Change | |
|---|---|---|---|---|
| Passenger Revenue | $ 13,506 | $ 13,107 | $ 399 | 3 % |
| Cargo Revenue | $ 233 | $ 196 | $ 37 | 19 % |
| Other Revenue | $ 2,934 | $ 2,374 | $ 560 | 24 % |
| Total Operating Revenue | $ 16,673 | $ 15,677 | $ 996 | 6 % |
| Operating Expenses | ||||
| Salaries and Related Costs | $ 4,443 | $ 4,231 | $ 212 | 5 % |
| Aircraft Fuel and Related Taxes | $ 2,570 | $ 2,747 | $ -177 | -6 % |
| Ancillary Business Costs | $ 1,724 | $ 1,250 | $ 474 | 38 % |
| Other Operating Expenses | $ 1,166 | $ 1,069 | $ 97 | 9 % |
| Landing Fees and Rents | $ 921 | $ 832 | $ 89 | 11 % |
| Regional Carrier Expenses | $ 649 | $ 600 | $ 49 | 8 % |
| Aircraft Maintenance | $ 667 | $ 627 | $ 40 | 6 % |
| Other Selling Expenses | $ 645 | $ 643 | $ 2 | — % |
| Depreciation and Amortization | $ 614 | $ 643 | $ -29 | -5 % |
| Other Operating Expenses | $ 485 | $ 463 | $ 22 | 5 % |
| Total Operating Expenses | $ 14,989 | $ 14,280 | $ 709 | 5 % |
| Operating Income | $ 1,684 | $ 1,397 | $ 287 | 21 % |
| Pre-Tax Income | $ 1,777 | $ 1,561 | $ 216 | 14 % |
| Net Income | $ 1,417 | $ 1,272 | $ 145 | 11 % |
| Basic Earnings Per Share | $ 2.18 | $ 1.98 | ||
| Diluted Earnings Per Share | $ 2.17 | $ 1.97 | ||
| Weighted Average Shares Outstanding | 649 | 641 | ||
| Diluted Weighted Average Shares Outstanding | 654 | 647 |
Consolidated Balance Sheets
(in millions)
| ASSETS | September 30, 2025 | December 31, 2024 |
|---|---|---|
| Current Assets: | ||
| Cash and Cash Equivalents | $ 3,791 | $ 3,069 |
| Accounts Receivable, Net | $ 3,612 | $ 3,224 |
| Fuel, Expendable Parts and Supplies | $ 1,543 | $ 1,428 |
| Prepaid Expenses and Other | $ 2,284 | $ 2,123 |
| Total Current Assets | $ 11,230 | $ 9,844 |
| Property and Equipment, Net | $ 39,372 | $ 37,595 |
| Other Assets: | ||
| Operating Lease Right-of-Use Assets | $ 6,198 | $ 6,644 |
| Goodwill | $ 9,753 | $ 9,753 |
| Identifiable Intangibles, Net | $ 5,968 | $ 5,975 |
| Equity Investments | $ 3,883 | $ 2,846 |
| Other Noncurrent Assets | $ 3,219 | $ 2,715 |
| Total Other Assets | $ 29,021 | $ 27,933 |
| Total Assets | $ 79,623 | $ 75,372 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
|---|---|---|
| Current Liabilities: | ||
| Current Maturities of Debt and Finance Leases | $ 2,106 | $ 2,175 |
| Current Maturities of Operating Leases | $ 743 | $ 763 |
| Air Traffic Liability | $ 8,165 | $ 7,094 |
| Accounts Payable | $ 5,022 | $ 4,650 |
| Accrued Salaries and Related Benefits | $ 4,434 | $ 4,762 |
| Loyalty Program Deferred Revenue | $ 4,654 | $ 4,314 |
| Fuel Card Obligation | $ 1,100 | $ 1,100 |
| Other Accrued Liabilities | $ 2,025 | $ 1,812 |
| Total Current Liabilities | $ 28,249 | $ 26,670 |
| Noncurrent Liabilities: | ||
| Debt and Finance Leases | $ 12,773 | $ 14,019 |
| Noncurrent Operating Leases | $ 5,356 | $ 5,814 |
| Pension, Postretirement and Related Benefits | $ 3,051 | $ 3,144 |
| Loyalty Program Deferred Revenue | $ 4,468 | $ 4,512 |
| Deferred Income Taxes, Net | $ 2,961 | $ 2,176 |
| Other Noncurrent Liabilities | $ 3,943 | $ 3,744 |
| Total Noncurrent Liabilities | $ 32,552 | $ 33,409 |
| Commitments and Contingencies | ||
| Stockholders’ Equity | $ 18,822 | $ 15,293 |
| Total Liabilities and Stockholders’ Equity | $ 79,623 | $ 75,372 |
