Delta Stock Soars. Why Its Earnings Beat Is Sending Other Airline Shares Flying.

Heading into earnings, Delta Air Lines stock was down around 4% in 2025. (Photograph by Jamie Squire/Getty Images)

Key Points

• Delta Air Lines reported adjusted earnings per share of $1.71 and adjusted revenue of $15.2 billion in the third quarter.
• The airline raised its full-year earnings per share guidance to $6, exceeding Wall Street estimates of $5.80.
• Corporate sales increased by 8% and premium revenue grew by 9% in the third quarter.

Delta Air Lines earnings have given the sector’s stocks permission to take off early Thursday.

The carrier’s numbers beat expectations. It offered improved full-year guidance that came in ahead of Wall Street estimates. Significantly, the airline said sales trends have accelerated across all geographies in the past six weeks.

That was enough to send the shares, and those of its peers, higher in early trading. Delta jumped 6.5% ahead of the open, while United Airlines was up 4.6%, and American Airlines climbed 4%. Southwest Airlines rose 2.9%.

Delta reported adjusted earnings per share (EPS) of $1.71 on adjusted revenue of $15.2 billion in the third quarter. Wall Street was looking for EPS of $1.52 on sales of $15.1 billion.

The company firmed up its full-year guidance, now expecting EPS of $6—up from a range between $5.25 and $6.25. Analysts were looking for $5.80, according to FactSet.

Corporate travel and revenue from premium seats were particularly strong in the quarter. Corporate sales jumped 8%, while premium revenue grew 9%.

TD Cowen analyst Tom Fitzgerald said it was a “very positive report across-the-board.” He added that the most positive read-through was for United, given its exposure to premium, international and corporate travel. Fitzgerald has Buy ratings on both Delta and United.

“Momentum is continuing into the final stretch of our Centennial year, positioning us to deliver strong December quarter earnings,” Delta CEO Ed Bastian said.

It’s been a turbulent year for Delta as the company turns 100 years old but the stock is now on track to turn positive for the year at the open. The airline initially had higher hopes its anniversary—originally issuing full-year guidance for adjusted earnings per share (EPS) of more than $7.35.

But it withdrew that outlook after President Donald Trump announced sweeping tariffs in April and demand stalled. Delta then restored its guidance in July at between $5.25 and $6.25, before boosting it to $6 early Thursday.

After that round trip, the shares were up around 1% this year, as of early Thursday trading—underperforming the U.S. Global JETS exchange-traded fund’s 1% rise. In turn, the sector has lagged behind the S&P 500 considerably, which is up 15% this year.

But the industry’s recovery is to be admired—and looks set to continue thanks for Delta’s earnings.

The JETS ETF has now jumped 50% from its 52-week low in April, while Delta has climbed 76% from its low, according to FactSet data. United Airlines, up 1% for the year, has jumped 97% from its low.

Airline stocks now have a clear runway in the months ahead to salvage something from what was looking like a lost year for the sector.

Write to Callum Keown at callum.keown@dowjones.com