Delta revenue continues to increase while fuel costs rise

Delta Air Lines saw record revenue in the third quarter as consumers continue to spend on travel and experiences, the company told investors Friday.

Delta’s revenue was $20.2 billion in the quarter ended Sep. 30, up 21% over the same time frame last year. But net income in the quarter declined to $756 million from $1.4 billion a year earlier.

The airline is weathering much higher prices for aviation fuel, with quarterly costs topping $4 billion, a 69% increase year-over-year.

“Our resilience reflects the structural durability we’ve built over many years, enabling us to effectively navigate one of the most elevated fuel environments in recent times,” Delta CEO Ed Bastian said in a written statement.

The airline has been able to absorb the higher fuel costs in part because it owns its own refinery, which helps offset costs and is forecast to produce $700 million in profit this year. The airline has also been disciplined on flight capacity while consumer demand is strong, Erik Snell, the company’s chief financial officer, told reporters.

“The price for a ticket is still relatively lower than inflation over the last six or eight years, and so the demand strength remains,” Snell said.

He added that Delta’s revenue growth is coming from all categories — corporate, international and leisure travel — as well as its other businesses, including cargo and its co-branded American Express credit cards.

The airline also has the tail wind of increased prices for plane tickets. Airlines have been increasing fares as demand for travel continues, particularly among high-income consumers, and amid decreased competition after the shutdown of Spirit Airlines in May.

In August, airfares were up 23.4% compared with the previous year, according to the Bureau of Labor Statistics. For Delta, passenger revenue in the third quarter was up 15% year-over-year, growing in both premium and main cabin seats.

The airline is also adding more of its higher-priced seats to planes.

“Each aircraft we bring in has more premium seats because we know the demand is there and there’s a lot of opportunity to continue to serve that demand,” he said. “We’ve been reducing the capacity on the main cabin side.”

Spending on its SkyMiles credit cards also grew by double-digits, the eighth consecutive quarter of double-digit growth in cardholder spend.

Delta leaders are forecasting 20% growth in revenue for the fourth quarter. Bastian said the company expects a pre-tax profit of roughly $4.5 billion for the full year. That’s down from $5 billion in 2025.