Delta Air Lines posts $1.4B profit, says premium revenue may soon become No. 1 in economy

Between the U.S. government shutdown and ongoing economic uncertainty, it’s a tumultuous time for airlines. But that’s not the case for Delta Air Lines, the largest U.S. airline by market capitalization, which has emerged from the industry’s recent challenges virtually unscathed as its investments in high-end travel begin to pay off.

Shares of Delta Air Lines rose more than 4% today (October 9) after the Atlanta-based airline reported better-than-expected revenue and profits for the July-September quarter. Quarterly sales reached US$15.2 billion, a year-on-year increase of 4.1%, and net profit increased by 11% to US$1.42 billion. Strong demand for premium travel helped boost results: Sales in Delta’s premium segment rose 9% to $5.8 billion, even as economy-class revenue fell 4% to $6.0 billion.

For the first time, the airline will soon generate more revenue from premium seats than from economy class. Delta previously expected the milestone to be reached in 2027, but now it could happen as early as next year, said Delta President Glen Hauenstein. “We see many, many opportunities in the premium space over the next few years,” he told analysts today.

Some of those opportunities exist in Delta’s key markets of Los Angeles, Boston, New York and Seattle because they have a “significant concentration of high-quality” customers, Delta CEO Ed Bastian said on a conference call today.

The airline is also expanding its premium offerings by equipping nearly 1,000 aircraft with free WiFi and deepening partnerships with American Express, Uber and YouTube. Delta has even ventured into retail through partnerships, such as its recent lounge project with Spanx.

Rebounding from ‘Spring Coma’

Back in March, things weren’t looking so rosy when Delta Air Lines slashed its profit forecast due to economic concerns stemming from the Trump administration’s tariffs. The company calls this period its “spring coma.” Delta has since rebounded and provided stronger-than-expected guidance for the fourth quarter of 2025, projecting total revenue growth of between 2% and 4% over the next three months.

Meanwhile, the U.S. travel industry faces headwinds from the federal government shutdown that began in early October. Flights have been delayed across the country as the Federal Aviation Administration (FAA) agency reports staffing shortages. Transportation Secretary Sean Duffy said at a recent press conference that there has been a “slight increase in sick calls” for the country’s air traffic controllers – who, like other essential workers, are expected to work without pay during the shutdown.

Delta Air Lines has experienced outages before. Hauenstein said the airline lost about $1 million a day in revenue during the 35-day federal shutdown that began in 2018. The impact is smaller this time, in part because Delta is less reliant on Ronald Reagan Washington National Airport, one of the hubs hardest hit by staffing shortages.

“While we are monitoring the potential impact of the U.S. government shutdown, to date we have not seen a material impact,” Hauenstein added.