Dive Brief:

• Delta Air Lines’ “relentless focus” on improving customer experience, with an eye toward premium offerings, is paying off, executives said on a Q3 2025 earnings call Thursday.
• Retention rates among customers of premium products is in the mid 80 percent range, CEO Ed Bastian said. 
• “At the heart of our position of industry leadership is a relentless focus on elevating the customer experience,” Bastian said. “We're investing across every phase of the journey to make travel with Delta more seamless, personalized and premium, growing our value proposition to customers.”

Dive Insight:

After a first half of the year marked by uncertainty and slower growth, Delta roared into the third quarter, reporting revenue growth of 4.1% year over year, led by premium, corporate and loyalty. 

“Our premium offerings, industry-leading loyalty programs and elevated experiences we provide across the entire travel journey is driving increased customer preference for flying Delta and underpins our differentiated financial results,” EVP and CFO Daniel Janki said on the call. 

Delta hit “record” third quarter revenue of $15.2 billion and updated its full-year outlook to $3.5 billion to $4 billion, according to an earnings report. Premium revenue grew 9% year over year, while main cabin revenue fell 4% year over year. Loyalty revenue grew 9% year over year. 

It’s a stark change from where the company was just months ago. In April, the airline pulled financial guidance as trade uncertainty sent consumer confidence plummeting. During a first quarter earnings call, executives said Delta would continue to lean into its loyalty programs and premium offerings, which would provide resilience.

Since then, the airline has continued to expand its premium seating through retrofits and new aircraft deliveries with a higher mix of premium seats.

“In previous calls, I've equated it to the car that you drive today — is it better than the first car you had?” Bastian said. “The answer is probably yes, and you don't see many people going back to cars that are worse, and I think once people get used to traveling in a certain product, whether it's Comfort+, Delta Premium Select or Delta One, they tend not to go back.”

With such retention, Delta executives see a long runway for premium.

“The intent to repurchase is very high, continuing to expand the availability of the products, the price points on the products,” Bastian said. “And this is a journey, a long journey we're on.”

Among its CX investments on the ground, the airline has upgraded airport facilities, enhanced Sky Clubs and launched Delta One Lounges in key coastal airports. It partnered with Uber to streamline airport and pickup and drop-off for customers. Beyond its airport investments, Delta equipped nearly 1,000 aircrafts with in-air WiFi, which it provides to SkyMiles members for free. 

Its partnership with American Express, Uber and YouTube “extend SkyMiles further into our members' daily activities, deepening engagement and preference for the Delta brand beyond the flight,” Bastian said. 

Delta's loyalty ecosystem continues to be a powerful driver of enterprise value, Janki said. Notably, customers of the co-branded American Express-Delta credit card are among the most valuable customers, traveling more often and spending more on Delta. 

“While roughly one-third of active SkyMiles members hold a co-brand card today, we have further runway as both engagement and member penetration continue to rise,” Janki said.