Delta Air Lines delivered a robust set of financial results for the third quarter of 2025, posting record revenue and beating consensus forecasts for earnings, driven largely by continued strength in premium and corporate travel demand.
CEO Ed Bastian expressed optimism for the months ahead, projecting full-year adjusted earnings per share (EPS) to reach about $6, at the upper end of previous guidance. The company sees itself strategically positioned to expand margins, grow revenue, and capitalize on premium travel trends as it looks beyond 2025. The results from America’s most profitable airline underscored a marked tilt in passenger preference toward premium travel.
For the first time in Delta’s history, the company now expects sales of premium seats—long seen as a luxury—will overtake those of its traditional main cabin offerings, and will do so in 2026, a full year earlier than previously expected. When asked on the subsequent call with analysts about his previous prediction that premium would overtake main in 2027 and whether these trends mean we can expect to see it in 2026, President Glen Hauenstein was positive: “I think you will.”
‘Inflection’ in main cabin demand
On the earnings call, both Hauenstein and CEO Ed Bastian discussed what they see as an “inflection” in main cabin demand, as revenue from high-end seats—including first class and comfort-plus—rose by 9% to nearly $5.8 billion in the quarter and corporate travel rebounded sharply, up 8%. At the same time, main cabin sales declined 4% to around $6 billion, signaling a shift in consumer behavior that Delta expects will accelerate, potentially allowing premium seat sales to overtake economy sales by 2027, according to industry projections. For the three months ended Sept. 30, Delta reported adjusted revenue of $15.2 billion, and adjusted EPS of $1.71, both comfortably ahead of Wall Street estimates.
This surge in premium demand is directly aligned with the dramatic concentration of wealth in the U.S., where the top 10% of households accounted for nearly 50% of all consumer spending in the second quarter of 2025, according to Moody’s Analytics. CFO Dan Janki referenced Delta’s strategic moves to trim off-peak routes and focus on more profitable flights as contributing to the results, but Hauenstein spoke almost in surprise at what’s playing out: “Premium products used to be loss leaders, and now they’re the highest-margin products.”
Delta’s earnings release sent its shares surging by as much as 6%, making it one of the top performers in the S&P 500 on Thursday. The airline sector gained broadly by association, boosted by confidence in resilient travel demand and Delta’s strong execution. Analysts point to Delta’s results as a bellwether of improving fundamentals in the U.S. Airline industry, with its positive outlook assuaging concerns about economic slowdown and illustrating the profitability available through strategic capacity management and an elevated focus on premium segments.
Doubling down on premium
Looking to the future, Hauenstein said he thinks Delta is seeing “many, many more opportunities in premium in the coming years.” He cited Delta’s investments in Los Angeles, Boston, New York, and Seattle as a platform for growth, because “that’s where a considerable amount of premium lives. Delta historically wasn’t as big in those markets as we are now.”
And not only has Delta planted itself on the coasts where the upper middle class lives (and flies from), Hauenstein noted that Delta has “built generational experiences through the airports, the Delta One lounges,” referring to the extra-high-end tier of lounges that Delta has introduced as its Delta Sky Club lounges grow more overcrowded. “We see a considerable amount of continued momentum forward in premium,” Hauenstein added. In other words, the top 10% are going to keep spending, and maybe blow past 50% of the consumer economy soon, if Delta’s results are the bellwether they seem to be.
Delta did not immediately respond to a request for comment.
