Strong Financial Performance: Delta Air Lines reported a pretax income of $1.8 billion and earnings of $2.10 per share for the June quarter, consistent with previous guidance. Revenue increased approximately 1% year-over-year to $15.5 billion, with operating margins at 13.2% and cash flow generation of $700 million for the quarter, leading to a year-to-date free cash flow of $2 billion.

Capacity Management and Revenue Stability: The airline industry has seen a reduction in capacity, particularly at the lower end, allowing Delta to stabilize its revenue environment. Domestic industry seats are down close to 1% as of September, which is expected to support revenue per available seat mile (RASM) amid revised consumer and corporate confidence.

Healthy Demand Trends and Growth Forecast: Delta sees overall demand for air travel stabilizing and has forecasted earnings per share flat to 4% revenue growth for September, indicating resilience in consumer engagement, particularly among premium segments. The company expects to deliver full-year earnings per share between $5.25 and $6.25 with free cash flow expected between $3 billion and $4 billion, enabling continued debt reduction and shareholder returns.