Strength of results and outlook demonstrate Delta's structural durability in high fuel cost environment

Record September quarter revenue on broad demand strength and healthy yield growth

Expect continued momentum in December quarter with revenue expected to grow approximately 20 percent

Outlook for full-year EPS of $5.10 to $5.60 and free cash flow of approximately $2.5 billion with a double-digit return on invested capital

Strengthening investment-grade balance sheet with plan to pay down more than $2 billion of debt in 2026

ATLANTA, Oct. 9, 2026 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the September quarter and provided its outlook for the December quarter and full year 2026. Highlights of the September quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.

"Demand remains strong, supported by consumers' growing preference for experiences and travel, with air travel continuing to be one of the best values in the consumer economy. Against this backdrop, we delivered September quarter pre-tax profit of $1.5 billion, matching last year's performance, and generated $1.9 billion of free cash flow year-to-date. Our resilience reflects the structural durability we've built over many years, enabling us to effectively navigate one of the most elevated fuel environments in recent times. The foundation of that resilience is our people, whose commitment to delivering for our customers continues to set Delta apart," said Ed Bastian, Delta's chief executive officer.

"For the full year, we expect to generate a pre-tax profit of roughly $4.5 billion, absorbing a $6 billion increase in fuel costs. Looking ahead, our focus remains on profitable growth and delivering against our long-term financial framework, including mid-teens margins and returns, durable free cash flow and gross leverage of approximately one times."

September Quarter 2026 GAAP Financial Results

- Operating revenue of $20.2 billion

- Operating income of $1.5 billion with an operating margin of 7.2 percent

- Pre-tax income of $1.1 billion with a pre-tax margin of 5.3 percent

- Earnings per share of $1.15

- Operating cash flow of $1.7 billion

September Quarter 2026 Non-GAAP Financial Results

- Operating revenue of $17.6 billion

- Operating income of $1.7 billion with an operating margin of 9.4 percent

- Pre-tax income of $1.5 billion with a pre-tax margin of 8.5 percent

- Earnings per share of $1.72

- Operating cash flow of $1.7 billion

Revenue Environment and Outlook

"September quarter revenue grew approximately 16 percent over prior year, on flat capacity, driven by broad demand strength and healthy yield growth as we cover higher costs and manage the business for margins," said Joe Esposito, Delta's chief commercial officer.

"Revenue momentum is continuing in the December quarter, with strength across all products and geographies, supporting our outlook for total revenue growth of approximately 20 percent over last year. With seats growing less than 2 percent, including a reduction in Main Cabin seats, our capacity positioning supports another quarter of sequential improvement in unit revenue with progression in both Domestic and International."

- Broad demand strength continued in the September quarter: Delta delivered record September quarter total revenue of $17.6 billion, increasing 16 percent over the same period last year. Adjusted total unit revenue (TRASM) grew 15 percent over prior year, accelerating 3 points from the prior quarter. Main cabin unit revenue grew 17 percent over prior year on seats down low-single digits, marking another quarter of sequential progress.

- Strong revenue performance across all geographies: Domestic unit revenue grew 16 percent year-over-year on strong yields and a load factor that was 1 point higher than last year, reflecting the strength of Delta's brand and a measured approach to capacity. International unit revenue increased 12 percent, with performance led by Latin where unit revenue improved 22 percent over last year. Transatlantic unit revenue growth improved 4 points sequentially to 11 percent year-over-year. Transpacific revenue grew 13 percent over prior year on 8 percent higher capacity, supporting profitable growth through new routes to Asia.

- Continued momentum in diversified, high-margin revenue streams: Diverse revenue streams accounted for 61 percent of total revenue in the September quarter. Premium revenue grew 18 percent year-over-year with double-digit unit revenue growth driven by yield and load factor on a 6 percent increase in seats. Cargo revenue increased 29 percent year-over-year, with roughly equal growth between volume and yield. MRO revenue grew 28 percent year-over-year, bringing year-to-date revenue to $990 million.

- Growing member engagement across loyalty ecosystem: Total loyalty revenue grew 18 percent, with SkyMiles member engagement continuing to deepen in the air and beyond the flight. Co-brand card acquisitions and spend both grew double-digits, the eighth consecutive quarter of double-digit growth in cardholder spend. This momentum supported 15 percent growth in American Express remuneration in the quarter, positioning the full year to exceed $9 billion. Travel products and non-air partnership revenue increased 25 percent year-over-year.

- Corporate sales3 grew double-digits in all sectors: Corporate sales growth was led by the Banking, Technology, and Energy sectors, with particularly strong performance in Boston and Los Angeles. Recent corporate survey results indicate over 90 percent of respondents expect their corporate travel will increase or stay the same in 2027.

Cost Performance and Outlook

"Delta delivered earnings of $1.72 per share in the September quarter, in line with last year while absorbing more than $500 million of higher fuel costs compared to our guidance in early July. In the December quarter, we expect earnings of $1.15 to $1.65 per share, based on a fuel price of approximately $4.25 per gallon. This positions earnings consistent with last year at the upper end of the range," said Erik Snell, Delta's chief financial officer.

"The Delta team continues to deliver for our customers, widening our industry lead in on-time performance and achieving record baggage results. September quarter non-fuel unit costs increased 7.3 percent over the prior year on flat capacity, driven primarily by higher crew and revenue-related costs on capacity growth that was several points below our original plan, including nearly one point of impact from summer storms. With slightly higher capacity and continued operational efficiencies, we expect December quarter non-fuel unit cost growth to improve 1 to 2 points sequentially. Looking to next year, we remain on track for low-single-digit unit cost growth as capacity normalizes, operational improvements continue and we lap higher costs in our baseline."

September Quarter 2026 Cost Performance

- Operating expense of $18.7 billion and adjusted operating expense of $15.9 billion

- Adjusted non-fuel costs of $11.1 billion

- Non-fuel CASM was 14.03¢, an increase of 7.3 percent year-over-year

- Adjusted fuel expense of $4.1 billion was up 62 percent year-over-year

- Adjusted fuel price of $3.61 per gallon increased 60 percent year-over-year with a refinery benefit of 13¢ per gallon

- Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.5

Balance Sheet, Cash and Liquidity

"We generated $463 million of free cash flow in the September quarter. The strength of our cash flow generation allows us to consistently reinvest to compound our advantages while reinforcing our investment grade balance sheet. For the full year, we expect to deliver free cash flow of approximately $2.5 billion and pay down more than $2 billion of debt, positioning us to end the year with gross leverage of approximately 2.2x," Snell said.

- Adjusted net debt of $13.4 billion at September quarter end, a reduction of $950 million from the end of 2025

- Payments on debt and finance lease obligations for the September quarter of $1.2 billion

- Adjusted operating cash flow in the September quarter of $1.7 billion, and with gross capital expenditures of $1.4 billion, free cash flow was $463 million

- Air Traffic Liability ended the quarter at $9.6 billion

- Liquidity4 of $6.9 billion at quarter-end, including $3.1 billion in undrawn revolver capacity

September Quarter 2026 Highlights

Operations, Network, and Fleet

- Led all carriers5 in on-time arrival and departure performance for the quarter.

- Set a Delta September quarter record6 for Domestic mishandled baggage rate (MBR).

- Took delivery of 13 aircraft in the quarter, including A350-900, A321neo, and A220-300 aircraft.

- Announced new international service from Seattle to Tokyo-Narita, Los Angeles to Manila, Austin to Paris-Charles de Gaulle, Detroit to Athens, and Boston to Venice, with flights beginning in 2027, while extending seasonal service on select Transatlantic routes.

- Expanded position in Los Angeles with announcement of largest-ever schedule, with new and increased service to multiple U.S. destinations.

Culture and People

- Recognized by customers for the fifth consecutive year with the award for Best Airline Staff Service in North America at the Skytrax World Airline Awards.

- Accrued nearly $900 million in profit sharing year-to-date toward next February's payout.

- Named to TIME's America's Best Companies list, the only airline in the top 100.

- Ranked No. 1 on PEOPLE's Companies That Care list, the only airline recognized.

- Contributed $100,000 to American Red Cross earthquake relief efforts in Colombia.

- Established the Chief Data Officer position, welcoming Ramnik Bajaj to advance Delta's data and AI capabilities, accelerate innovation, and enhance decision-making, unlocking new opportunities for Delta.