Delta’s Q3 Earnings Show 7% Growth in Corporate Travel

Delta Air Lines continues to demonstrate resilience in the business travel sector, building on strong performance from previous quarters as it reported third-quarter financial results Thursday (Oct. 10).

Corporate travel sales rose 7%, driven by the airline’s focus on premium offerings, which have consistently outperformed main cabin sales. Delta officials said a recent survey reveals 85% of companies anticipate boosting their travel budgets in 2025.

“Corporate travel continues to improve and Delta continues as the business carrier of choice,” Delta CEO Ed Bastian said during the airline’s Q3 earnings call.

Additionally, Delta’s diversified revenue streams, particularly from loyalty programs, accounted for 57% of total revenue, supported by a 6% year-over-year increase in loyalty revenue. Bastian said Delta’s loyalty program is attracting younger customers, evidenced by an additional 3 million active members under 40.

“Deeper engagement with Delta drives higher customer satisfaction and loyalty,” he said.

The airline’s total revenue increased 1%, to $15.68 billion, while net income reached $1.27 billion. Adjusted earnings per share were $1.50, slightly below expectations due to a 45-cent impact from the July CrowdStrike outage that disrupted operations and resulted in a $380 million revenue loss, primarily driven by refunding customers for canceled flights and providing customer compensation in the form of cash and SkyMiles. Delta said 7,000 flights were canceled during the five-day period. Delta is also pursuing compensation from CrowdStrike and Microsoft for the revenue losses incurred during the outage.

Despite challenges in the domestic market, Delta’s premium offerings continued to grow, and the airline plans a 3% to 4% capacity increase in the fourth quarter. Delta President Glen Hauenstein noted potential fluctuations in consumer spending around the upcoming presidential election due to reduced travel demand, although holiday bookings remain strong.

Hauenstein emphasized premium products are performing significantly better than coach, with Delta maintaining a strong focus on its business customers.

“We always have room for our business customers,” he said. “Domestic and transatlantic are leading the way in back half of the year. We’re sitting in a pretty good spot with all entities as we head out of this year and into 2025.”

Hauenstein noted an “interesting change” related to the shifting demand for transatlantic flights. He said peak travel months have transitioned from July and August to September and October, likely influenced by changing weather patterns in Europe and the desire for more temperate travel conditions.

“We have seen July and August less peaky,” he added.

This seasonal shift could provide opportunities for Delta to capitalize on increased demand during these months, complementing the strong performance in both domestic and transatlantic markets.

Looking ahead, Delta anticipates a 2% to 4% increase in total revenue for the fourth quarter, driven by planned capacity growth of 3% to 4% and strong holiday bookings.