Morning Note: Market news and an update from Delta Air Lines.

Market News

Spot silver surged over 4% to an all-time high of $50.80 an ounce, surpassing its previous peak recorded during the Hunt brothers’ squeeze in 1980, as strong safe-haven demand met tight supply. The precious metal has risen over 70% this year, outperforming gold. However, both metals fell back as the US dollar strengthened and investors took profits following news that Israel and Hamas had agreed on the first phase of a ceasefire plan. Gold currently trades at $3,960 an ounce and silver $50.30 an ounce.

Senate Republicans plan to cancel a scheduled recess for next week if the stalemate persists, a person familiar said. Some House Republicans are questioning Mike Johnson’s decision to keep the chamber away during the impasse. The US Bureau of Labour Statistics recalled staff to prepare the September CPI report by month’s end, a person familiar said. The bureau had suspended releases since the shutdown, but the development opens the door for fresh price data by the Fed’s October meeting. The 10-year Treasury yields 4.13%.

US equities finished lower last night – S&P 500 (-0.3%); Nasdaq (-0.1%) – though ended off worst levels. Big tech was mixed, with Meta and Nvidia up and Apple a notable faller. The airlines were firm following good results from Delta (see below). In Asia this morning, equities markets also fell: Nikkei 225 (-1.0%); Hang Seng (-1.8%); Shanghai Composite (-0.9%). The yen declined, giving up earlier gains even as the ruling LDP’s new leader Sanae Takaichi said she has no intention of triggering an excessively weak currency.

The FTSE 100 is currently little changed at 9,505, while Sterling trades at $1.3310 and €1.1490. Brent Crude fell below $65 a barrel, extending losses from the previous session as geopolitical risk premiums eased.

Source: Bloomberg

Company News

Last night Delta Air Lines released reassuring third quarter results and posted guidance for the current quarter ahead of market expectations. In response, the shares bounced by 5%, with a positive impact seen across the airline sector.

Delta is one of the world’s largest global carriers with a fleet of around 1,300 aircraft that are varied in size and capabilities, providing flexibility to adjust aircraft to the network. The group has acquired new and more fuel-efficient aircraft with increased premium seating to replace older aircraft and has reduced fleet complexity with fewer fleet types. In the first nine months of 2025, the group took delivery of 31 new aircraft and retired 20. With an industry-leading global network, Delta and the Delta Connection carriers offer service to more than 300 destinations on six continents.

During the third quarter, the company delivered results at the top end of management expectations on a combination of strong execution and improving fundamentals. Operating revenue grew by 4.1% to a record $15.2bn, ahead of the market forecast of $15.0bn. A sharp reduction in airline seat capacity in the US market has driven up ticket prices. As a result, adjusted total unit revenue (TRASM) rose by 0.3%, up 3.5 points sequentially.

Delta’s diversified revenue base contributed 60% of total revenue and grew double-digits year-over-year. Premium revenue grew by 9%, with improvement across all products, cushioning the weakness in main-cabin sales, which were down 4%. Loyalty revenue was up 9%. American Express remuneration was $2bn, up 12%, driven by double-digit co-brand spend growth.

Domestic passenger revenue grew 5%, with continued strength in premium cabins and an inflection in main cabin unit revenue growth. Domestic unit revenue grew 2%. Cargo revenue grew 19%.

Corporate sales rose 8%. Recent corporate survey results indicate that roughly 90% of companies expect their travel volume to increase or remain steady in 2026, five points higher than last year's survey at this time.

Adjusted non-fuel costs only grew by 4% to $10.6bn, while non-fuel unit cost growth was approximately flat, bringing year-to-date non-fuel unit cost growth to less than 2%, consistent with the group’s low-single digit guidance. Adjusted fuel expense fell by 8% to $2.6bn, with the average fuel price per gallon down 11%.

As a result, the operating margin rose from 9.4% to 11.2%, while EPS rose by 14% to $1.71, well above the market forecast of $1.53.

During the latest quarter, free cash flow rose from $95m to $833m, while net debt is down $2.4bn since the start of the year to $15.6bn. The gearing target is less than 2.5x net debt to EBITDAR. The group had already announced a 25% increase in its dividend to 18.75c, beginning in the December quarter.

Over the last six weeks, sales trends have accelerated across all geographies and in every advance purchase window, positioning Delta to finish the year with momentum. For the current quarter, the target is revenue growth of 2%-4%, with healthy sequential unit revenue improvement driven by continued Domestic strength and meaningful improvement in Transatlantic unit revenue. The company also expects an operating margin of 10.5%-12%, and EPS of $1.60-$1.90 (vs. consensus of $1.66).

For the full year, guidance for EPS is $6.00, at the top end of the previous guidance range of $5.25-$6.25. Free cash flow is expected to be $3.5bn-$4.0bn, in line with the group’s long-term target.

Source: Bloomberg