By Callum Keown
Delta Air Lines warned Wednesday that the government shutdown will hit its pretax profit by around $200 million in the fourth quarter. But the stock was flying higher because the carrier's update contained plenty of positive news, too.
The shares rose 2.4% to $66.74 in early trading. Delta said demand in the final quarter of the year "remains healthy" and that trends are strong for early 2026. Growth in travel bookings has now returned to initial expectations after softening in November as a result of the 43-day shutdown.
Management expects the effect on pretax profits will be $200 million, or 25 cents per share. Analysts are expecting adjusted earnings per share of $1.64 when Delta reports in early January, while management has forecast a result of between $1.60 and $1.90.
The market has been bracing for negative news resulting from the government shutdown. The Federal Aviation Administration ordered airlines to cut flights at around 40 U.S. airports in early November.
All things considered, Delta's update isn't bad at all.
Write to Callum Keown at callum.keown@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 03, 2025 10:12 ET (15:12 GMT)
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