Oct 9, 2026, 6:30 AM ETIndustrials

Delta Air Lines — September Quarter 2026 Earnings Summary

DALDELTA AIR LINES INC

Financial Performance

Reported September quarter GAAP operating revenue of $20.2 billion, a 21% year-over-year increase, with adjusted operating revenue of $17.6 billion, up 16%.
GAAP operating income was $1.5 billion (7.2% margin), while adjusted operating income was $1.7 billion (9.4% margin).
GAAP pre-tax income was $1.1 billion (5.3% margin); adjusted pre-tax income was $1.5 billion (8.5% margin).
Diluted earnings per share (EPS) were $1.15 on a GAAP basis and $1.72 on an adjusted basis.
Operating cash flow was $1.7 billion; free cash flow for the quarter was $463 million.
Year-to-date free cash flow was $1.9 billion.
Adjusted net debt ended the quarter at $13.4 billion, a reduction of $950 million from year-end 2025.
Total debt and finance lease obligations were $12.9 billion, down 14% year-over-year.
Gross capital expenditures were $1.4 billion.
Adjusted non-fuel unit costs (CASM-Ex) increased 7.3% year-over-year to 14.03¢.
Adjusted fuel expense was $4.1 billion, up 62% year-over-year, with an adjusted average fuel price of $3.61 per gallon (up 60%).

Full-year 2026 EPS guidance is $5.10 to $5.60.
Full-year 2026 free cash flow is expected to be approximately $2.5 billion.
Full-year 2026 pre-tax profit is expected to be roughly $4.5 billion.
December quarter 2026 total revenue is expected to grow approximately 20% year-over-year.
December quarter 2026 EPS guidance is $1.15 to $1.65.
December quarter 2026 operating margin is expected to be between 7% and 9%.
Full-year 2026 gross leverage is expected to be approximately 2.2x.
Long-term goals include mid-teens margins and returns, durable free cash flow, and gross leverage of approximately one times.
December quarter fuel guidance assumes a forward curve price of approximately $4.25 per gallon, including a $0.40 per gallon refinery benefit.
Management expects non-fuel unit cost growth to improve 1 to 2 points sequentially in the December quarter and remain in the low-single digits for next year.

Domestic unit revenue grew 16% year-over-year on a load factor 1 point higher than the prior year.
International unit revenue increased 12%, led by Latin America (up 22%) and Transatlantic (up 11%).
Transpacific revenue grew 13% year-over-year on 8% higher capacity.
Premium revenue grew 18% year-over-year, driven by yield and load factor on a 6% seat increase.
Cargo revenue increased 29% year-over-year with roughly equal growth in volume and yield.
MRO revenue grew 28% year-over-year, reaching $990 million year-to-date.
Total loyalty revenue grew 18%, with American Express remuneration expected to exceed $9 billion for the full year.
Travel products and non-air partnership revenue increased 25% year-over-year.
Corporate sales grew double-digits across all sectors, led by Banking, Technology, and Energy.
Took delivery of 13 aircraft in the quarter, including A350-900, A321neo, and A220-300 models.
Announced new international service routes for 2027: Seattle to Tokyo-Narita, Los Angeles to Manila, Austin to Paris-Charles de Gaulle, Detroit to Athens, and Boston to Venice.
Expanded schedule in Los Angeles to the largest-ever level with new and increased service to multiple U.S. destinations.

Led all carriers in on-time arrival and departure performance for the quarter.
Set a September quarter record for Domestic mishandled baggage rate (MBR).
Recognized by customers for the fifth consecutive year as the Best Airline Staff Service in North America at the Skytrax World Airline Awards.
Ranked No. 1 on PEOPLE's Companies That Care list.
JD Power ranked Delta SkyMiles Reserve, Platinum, and Gold American Express Cards in the top three for airline co-brand card customer satisfaction.
Over 90% of corporate survey respondents expect their corporate travel to increase or stay the same in 2027.

Absorbed a $6 billion increase in fuel costs for the full year.
September quarter non-fuel unit costs increased 7.3% due to higher crew and revenue-related costs, capacity growth below plan, and impacts from summer storms.
Forward-looking statements involve risks including fuel price volatility, supply disruptions, labor-related disruptions, geopolitical conflict, regulatory compliance, and technology failures.
Monroe refinery operations face risks related to environmental regulations, insurance coverage, and supply disruptions.

CEO Ed Bastian stated demand remains strong, supported by consumer preference for experiences, and highlighted the structural durability built to navigate elevated fuel environments.
CFO Erik Snell noted earnings were in line with last year despite absorbing over $500 million in higher fuel costs compared to prior guidance.
Chief Commercial Officer Joe Esposito emphasized broad demand strength and healthy yield growth driving revenue, with capacity positioning supporting sequential unit revenue improvement.
Management expressed confidence in delivering against long-term financial frameworks and maintaining investment-grade balance sheet strength.

No specific analyst questions and answers content was included in the provided press release text.

Plan to pay down more than $2 billion of debt in 2026.
Announced a strategic relationship with Hyatt to expand the SkyMiles loyalty ecosystem.
Established the Chief Data Officer position to advance data and AI capabilities.
Expanded Sustainable Aviation Fuel (SAF) access through agreements with Shell Aviation and a new blending facility at Flint Hills Resources' Pine Bend Refinery.
Joined the Georgia Sustainable Aviation Fuel (SAF) Coalition as a founding member.
Completed rollout of Delta Concierge, an AI-powered digital assistant, to all SkyMiles members.
Enhanced partnership with Starbucks and expanded partnerships with DraftKings and Sport 24.
Accrued nearly $900 million in profit sharing year-to-date.
Contributed $100,000 to American Red Cross earthquake relief efforts in Colombia.