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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Delta Air Lines (DAL - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Delta currently has an average brokerage recommendation (ABR) of 1.24, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.24 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 88% and 8% of all recommendations.

Brokerage Recommendation Trends for DAL

Check price target & stock forecast for Delta here>>>

While the ABR calls for buying Delta, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Is DAL a Good Investment?In terms of earnings estimate revisions for Delta, the Zacks Consensus Estimate for the current year has declined 14.6% over the past month to $5.32.

Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Delta. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, it could be wise to take the Buy-equivalent ABR for Delta with a grain of salt.

Key Takeaways Delta Air Lines slashes its 2026 EPS guidance to $5.10-$5.60 as rising fuel costs pressure profitability.DAL's Q3 fuel expenses surged 62% to $4.14B, while operating margin contracted 170 basis points to 9.4%.DAL's free cash flow fell to $463M while its valuation premium & downward earnings revisions raise concerns.
Delta Air Lines (DAL - Free Report) has lowered its full-year 2026 earnings guidance following disappointing third-quarter results released on Oct. 9, as surging fuel expenses and rising operating costs continue to pressure profitability. The airline now expects adjusted earnings of $5.10-$5.60 per share, down from its earlier projection of $6.50-$7.50.

In the third quarter of 2026, adjusted earnings of $1.72 per share missed the Zacks Consensus Estimate by 4.44%. Despite a 16% increase in adjusted revenues to $17.59 billion, escalating expenses weighed on margins. The combination of disappointing earnings and reduced guidance raises concerns about DAL's near-term prospects.

DAL's Share Price OutperformanceDAL's shares have gained 29% over the past year, outperforming the Zacks Transportation - Airline industry's 3.3% decline and the S&P 500's 18% growth. However, mounting cost pressures and weakening earnings expectations could challenge this momentum.

Image Source: Zacks Investment Research

Factors Weighing on DAL's Investment AppealSurging Fuel Costs Pressure Margins: Delta's adjusted fuel expenses surged 62% year over year to $4.14 billion in the third quarter, as average fuel prices increased 60% to $3.61 per gallon. Consequently, adjusted operating income declined 2% to $1.66 billion, while adjusted operating margin contracted 170 basis points to 9.4%. Non-fuel expenses also increased 8%, reflecting higher crew and revenue-related costs.

The challenging fuel environment poses risks across the airline industry. United Airlines (UAL - Free Report) and American Airlines (AAL - Free Report) also operate in a fuel-sensitive industry, where higher energy prices can constrain profitability. Like DAL, both UAL and AAL face the broader challenge of balancing revenue growth with escalating operating expenses. We expect high fuel costs to hurt the third-quarter results of both United Airlines (scheduled to be released on Oct. 20) and American Airlines (scheduled to be released on Oct. 22).

Weakening Cash Flow and Financial Obligations: Delta generated $463 million in free cash flow during the September quarter, down from $833 million a year earlier. Higher capital expenditures and increased operating costs constrained cash generation. Although adjusted net debt declined $2.24 billion year over year to $13.35 billion, substantial financial obligations continue to limit flexibility.

The company's plan to repay more than $2 billion of debt in 2026 supports balance-sheet improvement. However, persistent cost inflation and weaker free cash flow could constrain its ability to simultaneously fund expansion, reduce debt and reward shareholders.

Strong Demand Offers Limited Relief: Despite these challenges, Delta continues to benefit from healthy travel demand and premium offerings. Passenger revenues increased 15% year over year to $15.53 billion, while premium-ticket revenues climbed 18% to $6.82 billion. Loyalty-related revenues also grew, supported by its American Express partnership.

DAL's premium-focused strategy remains a competitive strength against United Airlines and American Airlines, which also compete for corporate and leisure travelers. However, strong demand alone may not offset rising operating costs, particularly when fuel expenses increase faster than revenues.

Delta expects approximately 20% revenue growth in the fourth quarter but anticipates adjusted operating margins of only 7-9%. Its projected fuel price of $4.25 per gallon suggests continued pressure on profitability.

DAL's Valuation and Earnings Revisions Signal CautionDAL currently trades at 11.41 X forward 12-month earnings, above the industry average of 10.23 X. Although its strong premium-travel franchise supports its valuation, the earnings outlook raises questions about whether this premium is justified.

Image Source: Zacks Investment Research

With profitability under pressure, DAL's valuation offers limited comfort. Industry competition involving United Airlines and American Airlines adds to the challenges, as airlines seek to protect margins while managing elevated expenses. Without stronger earnings visibility, investors may find it difficult to justify paying a premium for DAL.

Moreover, analysts have sharply lowered earnings expectations. The Zacks Consensus Estimate for 2026 earnings has declined 19.72% over the past 60 days to $5.25 per share. The 2027 consensus estimate has fallen 15.10% to $7.42 per share over the same period, indicating weakening confidence in the company's earnings trajectory.

Image Source: Zacks Investment Research

Should Investors Sell DAL Stock Now?Delta's reduced earnings guidance underscores the growing impact of elevated fuel costs and margin pressure despite healthy passenger demand. Weakening cash generation, substantial debt and negative earnings estimate revisions further cloud its investment outlook.

Although premium revenues and improving leverage remain encouraging, DAL's valuation premium and Zacks Rank #5 (Strong Sell) suggest limited near-term investment appeal. Given the mounting profitability challenges and downside risks, investors may consider avoiding fresh exposure or reducing their holdings in DAL stock until earnings visibility improves. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

watch now

Delta Air Lines said it will delay the launch of its nonstop service between Atlanta and the Saudi capital Riyadh until March after several deadly attacks hit the city's airport there.

Delta planned to begin the route on Oct. 23, with an Airbus A350-900 widebody plane, in what would have marked the first nonstop commercial flight between the U.S. and Saudi Arabia operated by a U.S. airline.

But since Thursday, thousands of flights have been canceled to and from King Khalid International Airport in Riyadh, according to Flightradar24. The deadly attacks, claimed by Yemen's Iran-backed Houthis, escalated Saturday, when a projectile struck a passenger terminal at the airport, officials said, killing at least 12 people and wounding more than 300.

King Khalid International Airport remains closed as of Monday.

"We remain in close contact with relevant government and aviation partners, including Saudia and Riyadh Air, as we monitor the situation," Delta said in a statement. "Saudi Arabia remains an important market for Delta, and we are committed to serving the Kingdom for the long-term."

Delta CEO Ed Bastian had told CNBC on Thursday that the airline hadn't yet decided whether to postpone the debut.

"Obviously, we were disappointed to see the news this week," he said. "Safety is going to make the call."

Delta's decision came after the Federal Aviation Administration on Sunday told U.S. airlines to exercise caution when flying in or around Saudi Arabia.

The FAA said pilots should "exercise caution" in or around Saudi Arabia "due to safety-of-flight risks associated with ongoing military activities" and navigation systems. In the warning, which is in effect until Dec. 10, the agency said the threats could be a potential risk "to aircraft at all altitudes."

Airlines suspended flights to the airport, some for the rest of the week, while countries including the U.S. and Australia advised citizens against travel to the region.

— CNBC's Michele Luhn contributed to this report.

Read more CNBC airline newsWhy airfare could rise even more, but airline profits won’tBudget airline king Bill Franke warms to premium upgradesCompanies spurn airlines’ cheapest business class ticketsUnited’s next decision: What to do with all those Boeing 737 Max 10 seats it ordered years agoRecord heat, crowds drive offseason boom in international travel

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

, /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 Financial Guidance1

4Q26

FY 2026

Total Revenue YoY (%)

Approx. 20%

Earnings Per Share

$5.10 - $5.60

Operating Margin

7% - 9%

Free Cash Flow ($B)

Approx. $2.5

Earnings Per Share

$1.15 - $1.65

Gross Leverage2

Approx. 2.2x

Guidance for the December quarter assumes fuel at the forward curve as of October 2, 2026, and includes a refinery benefit of approximately $0.40 per gallon. This results in a projected all-in fuel price for the quarter of approximately $4.25 per gallon.

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. _______________________________________

1 Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures

2 Adjusted debt to EBITDAR

3 Corporate travel sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time
period

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 _________________________________

4 Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities

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. Customer Experience and Loyalty

Announced a strategic relationship with Hyatt, expanding the SkyMiles loyalty ecosystem with another category-leading premium brand. JD Power ranked the Delta SkyMiles Reserve, Platinum, and Gold American Express Cards in the top three, respectively, for airline co-brand card customer satisfaction in 2026. Accelerated co-brand card acquisitions, driven by innovative card offers, such as two round-trip Delta Comfort tickets and Delta's highest-ever introductory mileage offer for new Reserve Card sign-ups. Active SkyMiles member base continued to grow, led by Gen Z and millennials, with outsized growth in focus cities and coastal hubs. Enhanced long-standing partnership with Starbucks with more ways for SkyMiles members to earn rewards. Continued rollout of fast, free Wi-Fi for SkyMiles members across nearly all of Delta's fleet with recent satellite upgrades expected to provide meaningful enhancements to connectivity. Completed rollout of Delta Concierge, our AI-powered digital assistant, to all SkyMiles members. Expanded Delta Sync experiences and offers through new partnerships with DraftKings and Sport 24. Announced a reimagined Delta One wine program featuring a curated selection of wines from Napa Valley and destinations across Delta's global network, supported by Delta's Sky Sommelier program. Environmental Sustainability 

Expanded SAF access through a multi-airport agreement with Shell Aviation. Completed a new SAF blending facility at Flint Hills Resources' Pine Bend Refinery, expanding SAF availability at Delta's second-largest hub in Minneapolis-St. Paul. Joined the launch of the Georgia Sustainable Aviation Fuel (SAF) Coalition as a founding member. Launched a partnership with the National Park Foundation to support conservation across America's national parks. ______________________________________

5 FlightStats preliminary data for Delta flights system wide. All carriers is defined as competitive set (AA, AS, B6, DL, UA, and WN) from July 1 - Sep 30, 2026. On-time performance includes A0, and A14. Departure performance defined as D0

6 Excludes 2020

September Quarter 2026 Results

September quarter results have been adjusted primarily for third-party refinery sales, gains/losses on investments and Monroe hedge results as described in the reconciliations in Note A.

GAAP

$
Change

%
Change

($ in millions except per share and unit costs)

3Q26

3Q25

Operating income

1,454

1,684

(230)

(14) %

Operating margin

7.2 %

10.1 %

       (2.9) pts

(29) %

Pre-tax income

1,074

1,777

(703)

(40) %

Pre-tax margin

5.3 %

10.7 %

       (5.4) pts

(50) %

Net income

756

1,417

(661)

(47) %

Diluted earnings per share

1.15

2.17

(1.02)

(47) %

Operating revenue

20,186

16,673

3,513

21 %

Total revenue per available seat mile (TRASM) (cents)

25.46

21.09

4.37

21 %

Operating expense

18,732

14,989

3,743

25 %

Cost per available seat mile (CASM) (cents)

23.63

18.96

4.67

25 %

Fuel expense

4,351

2,570

1,781

69 %

Average fuel price per gallon

3.80

2.26

1.54

68 %

Operating cash flow

1,713

1,847

(134)

(7) %

Capital expenditures

1,413

1,160

253

22 %

Total debt and finance lease obligations

12,851

14,879

(2,028)

(14) %

Adjusted

$
Change

%
Change

($ in millions except per share and unit costs)

3Q26

3Q25

Operating income

1,662

1,688

(26)

(2) %

Operating margin

9.4 %

11.1 %

       (1.7) pts

(15) %

Pre-tax income

1,497

1,477

20

1 %

Pre-tax margin

8.5 %

9.7 %

       (1.2) pts

(12) %

Net income

1,134

1,114

20

2 %

Diluted earnings per share

1.72

1.70

0.02

1 %

Operating revenue

17,585

15,197

2,388

16 %

TRASM (cents)

22.18

19.22

2.96

15 %

Operating expense

15,924

13,508

2,416

18 %

Non-fuel cost7

11,125

10,339

786

8 %

Non-fuel unit cost (CASM-Ex) (cents)

14.03

13.08

0.95

7.3 %

Fuel expense

4,143

2,565

1,578

62 %

Average fuel price per gallon

3.61

2.25

1.36

60 %

Operating cash flow

1,716

1,816

(100)

(6) %

Free cash flow

463

833

(370)

(44) %

Gross capital expenditures

1,408

1,113

295

27 %

Adjusted net debt

13,350

15,586

(2,236)

(14) %

______________________________________

7 Updated definition excludes aircraft fuel and related taxes, Third-party refinery sales, MRO expense, and profit sharing

About Delta Air Lines Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer.

There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,500 daily Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other. 

Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by Cirium for being the top on-time airline in North America for the fifth consecutive year.

We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.

Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.

As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential.

A founding member of the SkyTeam alliance and powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta's premium product line is elevated by its unique partnership with Wheels Up Experience.

Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the award from Cirium, Delta has been recognized as the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; the top carrier for business travelers by Business Travel News; and best U.S. airline by Forbes Travel Guide's Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded companies in the U.S.

Forward Looking Statements
Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; failure of the technology we use or depend on to perform effectively, including new and emerging technologies; increases in the price of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), our wholly-owned subsidiary that operates the Trainer refinery; failure to achieve expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial or other covenants in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including those relating to the discharge of materials into the environment, waste management, pollution prevention measures and greenhouse gas emissions; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports where we operate; significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of laws and regulations governing environmental protection, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.

DELTA AIR LINES, INC.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in millions, except per share data)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Operating Revenue:

Passenger

$      15,534

$      13,506

$        2,028

15 %

$      43,443

$      38,852

$        4,591

12 %

Cargo

301

233

68

29 %

821

654

167

26 %

Other

4,351

2,934

1,417

48 %

11,533

7,855

3,678

47 %

Total operating revenue

20,186

16,673

3,513

21 %

55,797

47,361

8,436

18 %

Operating Expense:

Salaries and related costs

4,822

4,443

379

9 %

14,124

12,928

1,196

9 %

Aircraft fuel and related taxes

4,351

2,570

1,781

69 %

11,202

7,439

3,763

51 %

Refinery expense

2,601

1,476

1,125

76 %

6,346

3,679

2,667

72 %

Contracted services

1,277

1,166

111

10 %

3,729

3,442

287

8 %

Landing fees and other rents

1,021

921

100

11 %

2,912

2,650

262

10 %

Aircraft maintenance materials and outside repairs

662

667

(5)

(1) %

2,059

1,904

155

8 %

Passenger commissions and other selling expenses

703

645

58

9 %

2,019

1,869

150

8 %

Regional carrier expense

680

649

31

5 %

2,001

1,913

88

5 %

Depreciation and amortization

673

614

59

10 %

1,964

1,823

141

8 %

Passenger service

494

485

9

2 %

1,411

1,397

14

1 %

Profit sharing

389

392

(3)

(1) %

882

986

(104)

(11) %

MRO expense

267

212

55

26 %

868

581

287

49 %

Aircraft rent

159

135

24

18 %

469

408

61

15 %

Other

633

614

19

3 %

1,992

1,987

5

— %

Total operating expense

18,732

14,989

3,743

25 %

51,978

43,006

8,972

21 %

Operating Income

1,454

1,684

(230)

(14) %

3,819

4,355

(536)

(12) %

Non-Operating Income/(Expense):

Interest expense, net

(146)

(171)

25

(15) %

(442)

(521)

79

(15) %

Gain/(loss) on investments, net

(218)

311

(529)

NM

(419)

1,007

(1,426)

NM

Gain/(loss) on extinguishment of debt

2

(6)

8

NM

(3)

(26)

23

(88) %

Miscellaneous, net

(18)

(41)

23

(56) %

(87)

(143)

56

(39) %

Total non-operating income/(expense), net

(380)

93

(473)

NM

(951)

317

(1,268)

NM

Income Before Income Taxes

1,074

1,777

(703)

(40) %

2,868

4,672

(1,804)

(39) %

Income Tax Provision

(318)

(360)

42

(12) %

(798)

(886)

88

(10) %

Net Income

$           756

$        1,417

$         (661)

(47) %

$        2,070

$        3,786

$       (1,716)

(45) %

Basic Earnings Per Share

$          1.15

$          2.18

$          3.17

$          5.85

Diluted Earnings Per Share

$          1.15

$          2.17

$          3.15

$          5.80

Basic Weighted Average Shares Outstanding

655

649

654

648

Diluted Weighted Average Shares Outstanding

659

654

657

653

DELTA AIR LINES, INC.

Passenger Revenue

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in millions)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Ticket - Premium products

$       6,818

$       5,796

$       1,022

18 %

$     19,100

$     16,402

$       2,698

16 %

Ticket - Main cabin

6,802

6,063

739

12 %

19,058

17,771

1,287

7 %

Loyalty travel awards

1,302

1,108

194

18 %

3,578

3,140

438

14 %

Travel-related services

612

539

73

14 %

1,707

1,539

168

11 %

Passenger revenue

$     15,534

$     13,506

$       2,028

15 %

$     43,443

$     38,852

$       4,591

12 %

DELTA AIR LINES, INC.

Other Revenue

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

(in millions)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Refinery

$       2,601

$       1,476

$       1,125

76 %

$       6,346

$       3,680

$       2,666

72 %

Loyalty and related

1,346

1,129

217

19 %

3,911

3,338

573

17 %

MRO

296

231

65

28 %

990

621

369

59 %

Miscellaneous

108

98

10

10 %

286

216

70

32 %

Other revenue

$       4,351

$       2,934

$       1,417

48 %

$     11,533

$       7,855

$       3,678

47 %

DELTA AIR LINES, INC.

Total Revenue

(Unaudited)

Increase (Decrease)

3Q26 vs 3Q25

Revenue

3Q26 ($M)

Change

Unit Revenue

Yield

Capacity

Domestic

$              10,594

16 %

16 %

15 %

— %

Atlantic

3,317

11 %

11 %

12 %

— %

Latin America

867

14 %

22 %

20 %

(6) %

Pacific

756

13 %

5 %

7 %

8 %

Passenger Revenue

$              15,534

15 %

15 %

14 %

— %

Cargo Revenue

301

29 %

Other Revenue

4,351

48 %

Total Revenue

$              20,186

21 %

21 %

       Third Party Refinery Sales

(2,601)

Total Revenue, adjusted (See Note A)

$              17,585

16 %

15 %

DELTA AIR LINES, INC.

Statistical Summary

(Unaudited)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2026

2025

Change

2026

2025

Change

Revenue passenger miles (millions)

68,133

67,621

1

%

191,369

189,717

1

%

Available seat miles (millions)

79,288

79,054

—

%

227,145

225,099

1

%

Passenger mile yield (cents)

22.80

19.97

14

%

22.70

20.48

11

%

Passenger revenue per available seat mile (cents)

19.59

17.08

15

%

19.13

17.26

11

%

Total revenue per available seat mile (cents)

25.46

21.09

21

%

24.56

21.04

17

%

TRASM, adjusted - see Note A (cents)

22.18

19.22

15

%

21.77

19.41

12

%

Cost per available seat mile (cents)

23.63

18.96

25

%

22.88

19.11

20

%

CASM-Ex  - see Note A (cents)

14.03

13.08

7.3

%

14.39

13.47

7

%

Passenger load factor

86 %

86 %

—

pts

84 %

84 %

—

pts

Fuel gallons consumed (millions)

1,146

1,138

1

%

3,256

3,226

1

%

Average price per fuel gallon

$         3.80

$         2.26

68

%

$         3.44

$         2.31

49

%

Average price per fuel gallon, adjusted - see Note A

$         3.61

$         2.25

60

%

$         3.42

$         2.31

48

%

DELTA AIR LINES, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

September 30,

(in millions)

2026

2025

Cash Flows From Operating Activities:

Net income

$                    756

$                  1,417

Depreciation and amortization

673

614

(Gain) loss on fair value investments

226

(307)

Changes in air traffic liability

(460)

(728)

Changes in profit sharing

386

392

Changes in balance sheet and other, net

132

459

     Net cash provided by operating activities

1,713

1,847

Cash Flows From Investing Activities:

Property and equipment additions:

Flight equipment, including advance payments

(1,200)

(930)

Ground property and equipment, including technology

(213)

(230)

Acquisition of strategic investments and related

(45)

—

Other, net

155

125

     Net cash used in investing activities

(1,303)

(1,035)

Cash Flows From Financing Activities:

Proceeds from short-term obligations

75

—

Proceeds from long-term obligations

—

217

Payments on debt and finance lease obligations

(1,234)

(459)

Cash dividends

(141)

(122)

Other, net

(1)

(6)

     Net cash used in financing activities

(1,301)

(370)

Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted Cash Equivalents

(891)

442

Cash, cash equivalents and restricted cash equivalents at beginning of period

4,773

3,529

Cash, cash equivalents and restricted cash equivalents at end of period

$                  3,882

$                  3,971

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the same
such amounts shown above:

Current assets:

     Cash and cash equivalents

$                  3,787

$                  3,791

     Restricted cash included in prepaid expenses and other

77

97

Other assets:

     Restricted cash included in other noncurrent assets

18

83

Total cash, cash equivalents and restricted cash equivalents

$                  3,882

$                  3,971

DELTA AIR LINES, INC.

Consolidated Balance Sheets

(Unaudited)

September 30,

December 31,

(in millions)

2026

2025

ASSETS

Current Assets:

Cash and cash equivalents

$                          3,787

$                          4,310

Accounts receivable, net

4,325

2,850

Fuel, expendable parts and supplies inventories, net

2,637

1,601

Prepaid expenses and other

2,741

2,207

     Total current assets

13,490

10,968

Noncurrent Assets:

Property and equipment, net

42,206

39,743

Operating lease right-of-use assets

6,120

6,244

Goodwill

9,753

9,753

Identifiable intangibles, net

5,960

5,966

Equity investments

3,824

4,222

Other noncurrent assets

4,695

4,421

     Total noncurrent assets

72,558

70,349

Total assets

$                        86,048

$                        81,317

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current maturities of debt and finance leases

$                          3,324

$                          1,605

Current maturities of operating leases

912

809

Air traffic liability

9,560

7,157

Accounts payable

6,595

5,226

Accrued salaries and related benefits

4,550

4,906

Loyalty program deferred revenue

5,451

4,876

Fuel card obligation

1,100

1,100

Other accrued liabilities

2,083

1,945

     Total current liabilities

33,575

27,624

Noncurrent Liabilities:

Debt and finance leases

9,527

12,507

Noncurrent operating leases

5,072

5,353

Pension, postretirement and related benefits

3,031

3,156

Loyalty program deferred revenue

4,181

4,386

Deferred income taxes, net

4,232

3,444

Other noncurrent liabilities

3,917

3,994

     Total noncurrent liabilities

29,960

32,840

Commitments and Contingencies

Stockholders' Equity:

22,513

20,853

Total liabilities and stockholders' equity

$                        86,048

$                        81,317

Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate exactly due to rounding. 

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.

Forward Looking Projections. Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as those used in the reconciliations below will not be known until the end of the period and could be significant.

Adjustments. These reconciliations include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and for the reasons indicated below:

Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.

MTM adjustments and settlements on hedges. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. MTM fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts closed (i.e., settled) during the applicable period. With respect to hedges related to Monroe's inventory, settlements often occur before the related refinery inventory is sold. Beginning in 2026, settlement gains and losses related to Monroe's inventory that remains on-hand at period end are excluded from our adjusted results. These settlement gains and losses will be reflected in adjusted results during the period the inventory is sold. This change was made to match the timing of expense and revenue recognition and we have similarly adjusted the presentation of reconciliations for prior periods included here.

MTM adjustments on investments. Unrealized MTM gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.

Gain/loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.

Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted 

Three Months Ended

3Q26 vs 3Q25
% Change

(in millions)

September 30, 2026

December 31, 2025

September 30, 2025

Operating revenue

$                       20,186

$                       16,003

$                       16,673

Adjusted for:

Third-party refinery sales

(2,601)

(1,397)

(1,476)

Operating revenue, adjusted

$                       17,585

$                       14,606

$                       15,197

16 %

Three Months Ended

3Q26 vs
3Q25 %
Change

2Q26 vs
2Q25 %
Change

September 30,
2026

June 30, 2026

December 31,
2025

September 30,
2025

June 30, 2025

TRASM (cents)

25.46

25.11

21.94

21.09

21.44

Adjusted for:

Third-party refinery sales

(3.28)

(2.66)

(1.92)

(1.87)

(1.47)

TRASM, adjusted

22.18

22.45

20.02

19.22

19.97

15 %

12 %

Nine Months Ended

September 30, 2026

September 30, 2025

TRASM (cents)

24.56

21.04

Adjusted for:

Third-party refinery sales

(2.79)

(1.63)

TRASM, adjusted

21.77

19.41

Pre-Tax Income, Net Income, and Diluted Earnings per Share, adjusted

Three Months Ended

Three Months Ended

September 30, 2026

September 30, 2026

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$                 1,074

$                   (318)

$                    756

$                         1.15

Adjusted for:

MTM adjustments on investments

218

MTM adjustments and settlements on hedges

208

Gain on extinguishment of debt

(2)

Non-GAAP

$                 1,497

$                   (363)

$                 1,134

$                         1.72

Three Months Ended

Three Months Ended

December 31, 2025

December 31, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$                 1,513

$                   (294)

$                 1,219

$                         1.86

Adjusted for:

MTM adjustments on investments

(205)

MTM adjustments and settlements on hedges

3

Non-GAAP

$                 1,311

$                   (297)

$                 1,015

$                         1.55

Three Months Ended

Three Months Ended

September 30, 2025

September 30, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$                 1,777

$                   (360)

$                 1,417

$                         2.17

Adjusted for:

MTM adjustments on investments

(311)

MTM adjustments and settlements on hedges

5

Loss on extinguishment of debt

6

Non-GAAP

$                 1,477

$                   (363)

$                 1,114

$                         1.70

Pre-Tax Margin, adjusted

Three Months Ended

September 30, 2026

September 30, 2025

Pre-tax margin

5.3 %

10.7 %

Adjusted for:

Third-party refinery sales

1.1

0.9

MTM adjustments on investments

1.1

(1.9)

MTM adjustments and settlements on hedges

1.0

—

Pre-tax margin, adjusted

8.5 %

9.7 %

Operating Income, adjusted

Three Months Ended

(in millions)

September 30, 2026

September 30, 2025

Operating income

$                         1,454

$                         1,684

Adjusted for:

MTM adjustments and settlements on hedges

208

5

Operating income, adjusted

$                         1,662

$                         1,688

Operating Margin, adjusted

Three Months Ended

September 30, 2026

September 30, 2025

Operating margin

7.2 %

10.1 %

Adjusted for:

Third-party refinery sales

1.2

1.0

MTM adjustments and settlements on hedges

1.0

—

Operating margin, adjusted

9.4 %

11.1 %

Free Cash Flow. We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive compensation programs. Free cash flow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) pension plan contributions, (ii) net cash flows related to certain airport construction projects and other, and (iii) strategic investments and related. These adjustments are made for the following reasons:

Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations.

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are core to our operations in the periods shown.

Strategic investments and related. Certain cash flows related to our investments in and related transactions with other airlines and associated companies are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers.

Three Months Ended

(in millions)

September 30, 2026

September 30, 2025

Net cash provided by operating activities

$                         1,713

$                         1,847

Net cash used in investing activities

(1,303)

(1,035)

Adjusted for:

Pension plan contributions

—

6

Net cash flows related to certain airport construction projects and other

9

15

Strategic investments and related

45

—

Free cash flow

$                            463

$                            833

Nine Months Ended

(in millions)

September 30, 2026

Net cash provided by operating activities

$                         5,740

Net cash used in investing activities

(4,078)

Adjusted for:

Pension plan contributions

4

Net cash flows related to certain airport construction projects and other

83

Strategic investments and related

150

Free cash flow

$                         1,900

Operating Cash Flow, adjusted. We present operating cash flow, adjusted because management believes adjusting for the following item provides a more meaningful measure for investors:

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities. We adjust for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's operating cash flow that is core to our operations in the periods shown.

Three Months Ended

(in millions)

September 30, 2026

September 30, 2025

Net cash provided by operating activities

$                         1,713

$                         1,847

Adjusted for:

Net cash flows related to certain airport construction projects and other

3

(31)

Operating cash flow, adjusted

$                         1,716

$                         1,816

Operating revenue, adjusted related to premium products and diverse revenue streams

Three Months Ended

(in millions)

September 30, 2026

Operating revenue

$                    20,186

Adjusted for:

     Third-party refinery sales

(2,601)

Operating revenue, adjusted

$                    17,585

Less: main cabin revenue

(6,802)

Operating revenue, adjusted related to premium products and diverse revenue streams

$                    10,783

Percent of operating revenue, adjusted related to premium products and diverse revenue streams

61 %

Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex")

We adjust operating expense and CASM for certain items described above, as well as the following items and reasons described below:

Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance.

MRO expense. We adjust for MRO expenses because this adjustment allows investors to better understand and analyze the airline's recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Three Months Ended

(in millions)

September 30, 2026

September 30, 2025

Operating expense

$                       18,732

$                       14,989

Adjusted for:

Aircraft fuel and related taxes

(4,351)

(2,570)

Third-party refinery sales

(2,601)

(1,476)

MRO expense

(267)

(212)

Profit sharing

(389)

(392)

Non-Fuel Cost

$                       11,125

$                       10,339

Three Months Ended

3Q26 vs 3Q25
% Change

September 30, 2026

December 31, 2025

September 30, 2025

CASM (cents)

23.63

19.93

18.96

Adjusted for:

Aircraft fuel and related taxes

(5.49)

(3.26)

(3.25)

Third-party refinery sales

(3.28)

(1.92)

(1.87)

MRO expense

(0.34)

(0.23)

(0.27)

Profit sharing

(0.49)

(0.48)

(0.50)

CASM-Ex

14.03

14.03

13.08

7.3 %

Nine Months Ended

September 30, 2026

September 30, 2025

CASM (cents)

22.88

19.11

Adjusted for:

Aircraft fuel and related taxes

(4.93)

(3.30)

Third-party refinery sales

(2.79)

(1.63)

MRO expense

(0.38)

(0.26)

Profit sharing

(0.39)

(0.44)

CASM-Ex

14.39

13.47

Operating Expense, adjusted

Three Months Ended

(in millions)

September 30, 2026

September 30, 2025

Operating expense

$                       18,732

$                       14,989

Adjusted for:

Third-party refinery sales

(2,601)

(1,476)

MTM adjustments and settlements on hedges

(208)

(5)

Operating expense, adjusted

$                       15,924

$                       13,508

Total fuel expense, adjusted and Average fuel price per gallon, adjusted

Average Price Per Gallon

Three Months Ended

Three Months Ended

September 30,

September 30,

% Change

September 30,

September 30,

% Change

(in millions, except per gallon data)

2026

2025

2026

2025

Total fuel expense

$             4,351

$             2,570

$               3.80

$               2.26

Adjusted for:

MTM adjustments and settlements on hedges

(208)

(5)

(0.18)

(0.01)

Total fuel expense, adjusted

$             4,143

$             2,565

62 %

$               3.61

$               2.25

60 %

Average Price Per Gallon

Nine Months Ended

Nine Months Ended

September 30,

September 30,

% Change

September 30,

September 30,

% Change

(in millions, except per gallon data)

2026

2025

2026

2025

Total fuel expense

$           11,202

$             7,439

$               3.44

$               2.31

Adjusted for:

MTM adjustments and settlements on hedges

(57)

19

(0.02)

0.01

Total fuel expense, adjusted

$           11,144

$             7,457

49 %

$               3.42

$               2.31

48 %

Adjusted Net Debt. We use adjusted gross debt, including fleet operating lease liabilities (comprised of aircraft and engine leases and regional aircraft leases embedded within our capacity purchase agreements) and unfunded pension liabilities (if applicable), in addition to adjusted debt and finance leases, to present estimated financial obligations. We reduce adjusted total debt by cash, cash equivalents, and LGA restricted cash, resulting in adjusted net debt, to present the amount of assets needed to satisfy the debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile.

(in millions)

September 30, 2026

December 31, 2025

September 30, 2025

3Q26 vs 4Q25
$ Change

Debt and finance lease obligations

$                    12,851

$                    14,113

$                    14,879

Plus: sale-leaseback financing liabilities

1,733

1,779

1,793

Plus: unamortized discount/(premium) and debt issue cost, net and other

(9)

(6)

(1)

Adjusted debt and finance lease obligations

$                    14,575

$                    15,885

$                    16,670

Plus: fleet operating lease liabilities

2,580

2,780

2,790

Adjusted gross debt

$                    17,155

$                    18,665

$                    19,460

Less: cash and cash equivalents

(3,787)

(4,310)

(3,791)

Less: LGA restricted cash

(18)

(56)

(83)

Adjusted net debt

$                    13,350

$                    14,300

$                    15,586

$              (950)

Gross Capital Expenditures. We adjust capital expenditures for the following item to determine gross capital expenditures for the reason described below:

Net cash flows related to certain airport construction projects. Cash flows related to certain airport construction projects are included in capital expenditures. We adjust for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either funded with restricted cash specific to these projects or reimbursed by a third party.

Three Months Ended

(in millions)

September 30, 2026

September 30, 2025

Flight equipment, including advance payments

$                         1,200

$                            930

Ground property and equipment, including technology

213

230

Adjusted for:

Net cash flows related to certain airport construction projects

(5)

(47)

Gross capital expenditures

$                         1,408

$                         1,113

SOURCE Delta Air Lines

Delta Air Lines CEO Ed Bastian said his carrier is weighing whether to go ahead with debuting a flight between Atlanta and Riyadh, Saudi Arabia, after attacks claimed by Iran-backed Houthi rebels have escalated there.

The flights between Riyadh and Delta's biggest hub are scheduled to begin on Oct. 23.

Three people were killed in attacks at Riyadh's King Khalid International Airport as Houthis stepped up strikes in the country, Saudi Arabia's civil aviation authority said.

"Obviously, we were disappointed to see the news this week," Bastian told CNBC in an interview. "Safety is is going to make the call."

He said that the airline will let customers know of its decision soon. German airlines Lufthansa said it was pausing flights into Saudi Arabia through at least Oct. 16, a spokesman told CNBC.

Delta is planning to operate the Atlanta-Riyadh flight daily from Oct. 23 to Oct. 30 before moving to three-times-a-week service. When it announced the route earlier this year, Delta said it would be the first nonstop service between the U.S. and Riyadh operated by a U.S. airline.

Read more CNBC airline newsWhy airfare could rise even more, but airline profits won’tBudget airline king Bill Franke warms to premium upgradesCompanies spurn airlines’ cheapest business class ticketsUnited’s next decision: What to do with all those Boeing 737 Max 10 seats it ordered years agoRecord heat, crowds drive offseason boom in international travel

Delta Air Lines, Inc. (NYSE:DAL) will release third-quarter earnings before the opening bell on Friday, Oct. 9.

Analysts expect the air carrier to report quarterly earnings of $1.76 per share, up from $1.71 per share a year ago. The consensus estimate for DAL’s quarterly revenue is $18.92 billion. It reported $16.67 billion last year, according to Benzinga Pro.

Ahead of quarterly earnings, Susquehanna analyst Christopher Stathoulopoulos maintained a Positive rating on Delta Air and lowered the price target from $105 to $100, while Bernstein analyst David Vernon maintained an Outperform rating and cut the price target from $106 to $100.

With the recent buzz around Delta Air Lines, some investors may be eyeing potential gains from the company’s dividends. Currently, Delta Air Lines has an annual dividend yield of 1.04%, with a quarterly dividend of 21.5 cents per share (86 cents a year).  

So, how can investors exploit its dividend yield to pocket a regular $500 monthly?

To earn $500 per month, or $6,000 annually, from dividends alone, you would need an investment of about $578,882, or around 6,977 shares. For a more modest $100 per month ($1,200 per year), you would need $115,743 or about 1,395 shares.

To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend ($0.86 in this case). So, $6,000 / $0.86 = 6,977 ($500 per month), and $1,200 / $0.86 = 1,395 shares ($100 per month).

Note that dividend yield can change on a rolling basis, as dividend payments and stock prices both fluctuate over time.

How that works: The dividend yield is computed by dividing the annual dividend payment by the stock’s current price.

For example, if a stock pays an annual dividend of $2 and is currently priced at $50, the dividend yield would be 4% ($2/$50). However, if the stock price increases to $60, the dividend yield drops to 3.33% ($2/$60). Conversely, if the stock price falls to $40, the dividend yield rises to 5% ($2/$40).

Similarly, changes in dividend payments can affect the yield. If a company increases its dividend, the yield will also increase, provided the stock price stays the same. Conversely, if the dividend payment decreases, so will the yield.

DAL Price Action: Delta Air Lines shares fell 0.8% to close at $82.97 on Wednesday.

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Key Takeaways Delta Air Lines will begin twice-daily, year-round Salt Lake City-Flagstaff service on June 7, 2027. The route will improve access to Flagstaff, Sedona and the Grand Canyon for leisure travelers. Delta Air Lines will use the CRJ-550, adding a premium regional configuration to the new service. Delta Air Lines’(DAL - Free Report) new nonstop service between Salt Lake City and Flagstaff is a positive addition to its growing network, giving travelers more convenient access to some of Arizona’s most popular outdoor destinations. The twice-daily, year-round service, beginning June 7, 2027, will provide a convenient gateway to Flagstaff, Sedona and the Grand Canyon.

The route is particularly appealing for leisure travelers seeking outdoor experiences, from Flagstaff’s recreation and stargazing to Sedona’s red-rock landscapes and the Grand Canyon’s iconic scenery. Operating the service twice daily also gives customers greater flexibility when planning their trips.

The new Flagstaff connection further strengthens Salt Lake City’s position as an important hub in Delta’s western network. Along with recently announced services to Santa Rosa and Monterey, the expansion gives customers more options for reaching key destinations across the western United States.

Overall, the new route reflects Delta’s continued focus on expanding regional connectivity while offering travelers convenient access to major leisure destinations. The CRJ-550’s premium regional configuration also enhances the travel experience for customers using the new service.

Delta Air Lines’ Share Price PerformanceDAL’s shares have gained 46.7% over the past year compared with the Transportation - Airline industry’s 5.7% growth.

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DAL’s Zacks RankDAL currently has a Zacks Rank #5 (Strong Sell).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider better-ranked stocks like  Kirby (KEX - Free Report) and Herc Holdings (HRI - Free Report) .

Kirby currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KEX has an expected earnings growth rate of 12.3% for 2026. The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average beat of 2.86%.

Herc Holdings currently sports a Zacks Rank #1.

HRI has a negative expected earnings growth rate of 8.4% for the current year. However, the company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 60.64%.

Key Takeaways DAL adds Detroit-Athens, Boston-Venice and Austin-Paris nonstop routes to its European network. Delta Air Lines boosts Italy service with Boston-Venice flights and daily Boston-Milan service. DAL extends seasonal services as transatlantic demand grows, offering more off-peak travel options. Delta Air Lines (DAL - Free Report) expanded its European network, giving travelers more nonstop options and greater flexibility. The new Detroit–Athens and Boston–Venice routes, along with Austin–Paris, broaden Delta’s reach beyond its traditional European gateways and provide more direct access to popular destinations.

The Boston–Venice service is particularly notable, strengthening Delta’s presence in Italy and giving New England travelers another direct option. Increasing Boston–Milan service to daily flights also shows the airline’s continued focus on the Italian market, while the use of wide-body aircraft offers passengers multiple cabin choices.

The Detroit–Athens route similarly adds an important connection for travelers in Southeast Michigan and across Delta’s U.S. network. With connections to more than 40 U.S. destinations through Detroit, the service could make Greece more accessible to travelers across the United States.

Beyond the three new routes, Delta’s decision to extend several seasonal services into earlier spring or later fall and winter further expands travel options. Overall, the changes reflect growing demand for transatlantic travel while giving customers more opportunities to plan European trips outside the traditional summer peak.

Delta Air Lines’ Share Price PerformanceDAL’s shares have gained 24.3% over the past six months compared with the Transportation - Airline industry’s 2.5% growth.

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DAL’s Zacks RankDAL currently has a Zacks Rank #5 (Strong Sell).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider better-ranked stocks like Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) .

Expeditors currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EXPD has an expected earnings growth rate of 28.6% for 2026.  The company has an encouraging earnings surprise history. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Seanergy Maritime Holdings currently carries a Zacks Rank #2 (Buy).

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

Key Takeaways Delta Air Lines plans 200 daily LAX departures to nearly 70 destinations at peak summer 2027. New Monterey & Philadelphia routes, plus more flights to 7 U.S. cities, will expand LAX connectivity. DAL is investing $2.3B in Sky Way at LAX and plans a new 11,000-square-foot Sky Club in 2027. Delta Air Lines (DAL - Free Report) is strengthening its presence at Los Angeles International Airport (“LAX”) with its largest-ever summer schedule planned for 2027. Together with its partners, the company expects to offer more than 200 daily departures to nearly 70 destinations at the summer peak. The expanded network includes new nonstop service to Monterey and Philadelphia, along with higher frequencies to seven U.S. destinations.

The expansion is supported by significant investments in Delta’s premium airport experience. The company has invested $2.3 billion in its Sky Way at LAX, which connects Terminals 2 and 3 and enhances wayfinding, security processing and terminal amenities. Delta also operates two Delta One Lounges at LAX and plans to open an additional 11,000-square-foot Sky Club in 2027. By 2028, its four dedicated lounge spaces are expected to total more than 60,000 square feet and provide over 1,000 seats.

Delta is also enhancing its onboard premium offerings to complement its airport investments. Beginning Oct. 1, 2026, Delta One customers will receive a new wine portfolio featuring 13 selections, while Domestic First Class passengers can enjoy chef-curated dishes from Jose Andres. The company also offers fast, free Wi-Fi for SkyMiles members and Delta Sync entertainment, supporting an enhanced travel experience across its network.

The broader network expansion should improve connectivity between Los Angeles and several important business and leisure markets. New twice-daily service to Monterey will begin Dec. 19, 2026, while daily Philadelphia service is scheduled to start June 7, 2027. Delta is also increasing flights to Boston, San Diego, Seattle, Raleigh-Durham, Cincinnati, Houston and San Antonio, giving customers greater flexibility while strengthening the carrier’s domestic network from LAX.

Delta’s deepening presence in Los Angeles extends beyond flight capacity and premium offerings. The company employs more than 4,500 people in the Los Angeles area and partners with more than 25 organizations across Southern California in areas including education, workforce development, hunger relief and sustainability. With Los Angeles preparing to host the 2028 Olympic and Paralympic Games, these investments further expand Delta’s engagement with the region while supporting its long-term growth strategy at a key U.S. gateway.

DAL’s Share Price PerformanceDAL’s shares have gained 35.2% over the past year compared with the Transportation - Airline industry’s 0.6% growth.

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DAL’s Zacks RankDAL currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) . 

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expeditors has an expected earnings growth rate of 28.6% for 2026.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Seanergy Maritime Holdings currently sports a Zacks Rank #1.

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

Key Takeaways DAL will link SkyMiles with World of Hyatt, enabling cross-earning on flights & hotel stays. Elite members can earn miles on qualifying Hyatt stays or points on qualifying Delta fares. Hyatt's global hotel portfolio complements Delta's international network and premium travel strategy. Delta Air Lines’ (DAL - Free Report) new strategic relationship with Hyatt is expected to strengthen its loyalty ecosystem and enhance the overall travel experience for its most loyal customers. The exclusive collaboration will connect the Delta SkyMiles and World of Hyatt programs, enabling members to earn rewards across both air travel and hotel stays. The initiative aligns with DAL’s broader strategy of making SkyMiles a more comprehensive loyalty platform beyond flying.

The initial Dual Earn benefit is likely to increase engagement among elite members by allowing Delta Medallion members to earn miles on qualifying Hyatt stays, while World of Hyatt elites can earn points on qualifying Delta fares. This integrated rewards structure could encourage members to concentrate more of their travel spending with the two brands, potentially supporting customer retention and loyalty.

The partnership also provides DAL with an opportunity to deepen its presence in the premium travel segment. Hyatt’s extensive global hotel portfolio complements the airline’s broad international network, creating opportunities to offer members a more seamless experience across flights and accommodations. Additional personalized benefits and exclusive experiences planned for the future could further enhance the value proposition.

However, the financial impact of the relationship remains difficult to gauge at this stage, as the companies have yet to disclose complete details regarding eligibility, benefits and participation. Moreover, the success of the initiative will depend on member adoption and Delta’s ability to translate greater loyalty engagement into increased travel spending and customer retention.

DAL’s Share Price PerformanceDAL’s shares have gained 30.7% over the past year against the Transportation - Airline industry’s 3% decline.

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DAL’s Zacks RankDAL currently carries a Zacks Rank #3 (Hold).

Stocks to ConsiderInvestors interested in the Zacks Transportation sector may consider Expeditors International of Washington, Inc. (EXPD - Free Report) and Seanergy Maritime Holdings (SHIP - Free Report) . 

EXPD currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Expeditors has an expected earnings growth rate of 28.6% for 2026.  The company has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.

Seanergy Maritime Holdings currently sports a Zacks Rank #1.

SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.

Berkshire Hathaway (NYSE:BRK-B | BRK-B Price Prediction) CEO Greg Abel added 17,510,544 shares of Delta Air Lines (NYSE:DAL) during the second quarter of 2026, lifting Berkshire’s stake to 57,320,000 shares valued at $5,368,591,200 as of June 30, 2026, per the 13F filed August 14, 2026. Delta was Berkshire’s largest add of the quarter after Alphabet, and the only airline in the portfolio.

The size of the bet is the story. Berkshire disclosed a new Delta position of 39,809,456 shares worth roughly $2.65 billion in Q1 2026. One quarter later, Abel raised it by 44%. Same period, Berkshire exited Constellation Brands entirely and trimmed Bank of America, Capital One, Nucor, Kroger, DaVita and Ally. Abel has said nothing publicly about the trade, so any thesis has to be inferred from the filings and from Delta’s own disclosures.

Why This Reversal Matters In his 2007 shareholder letter, Warren Buffett laid out one of his most quoted verdicts on the industry: “The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines.” He added that “investors have poured money into a bottomless pit, attracted by growth when they should have been repelled by it,” and joked that “if a farsighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.”

Buffett called his 1989 USAir preferred a mistake, bought stakes in the big four US carriers in 2016, and sold all of them at a multibillion-dollar loss in May 2020. Buffett stepped down as CEO. His literal successor just re-entered the sector with a bigger check.

What Changed About Delta The Delta on Abel’s book looks very different from the commodity carrier Buffett described. In the June quarter, diversified, high-margin revenue streams accounted for 61% of total revenue. Premium product revenue rose 17%, loyalty program revenue rose 19%, and American Express remuneration reached $2.4 billion, up 16%. Delta expects $9 billion in Amex remuneration this year and roughly $1.2 billion of Delta TechOps revenue, up nearly 50%. Add cargo and the Monroe Energy refinery, and the earnings base looks less like a legacy airline and more like a branded consumer platform with a flying operation attached.

CEO Ed Bastian’s framing is deliberate: “We’re no longer competing on price as much as we’re competing on value and experience and service.” Management affirmed FY 2026 adjusted EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion, absorbing record quarterly fuel costs of $4.41 billion. While Berkshire was buying, Delta declared a dividend increase to $0.215 per share from $0.1875 on June 18, 2026.

Should Retirement Investors Follow The stock has run: up 44.02% over the past year and 19.66% year to date, though shares have slipped 7.77% over the past week to $82.41. Forward P/E sits at 13, with an analyst target of $105.31. Fuel and cyclicality remain real risks, and a 13F is a point-in-time snapshot as of June 30, 2026, not a statement of what Berkshire owns today (if you like borrowing Berkshire’s homework, we ranked the seven cheapest dividend payers still on its book in a free report here). The signal worth taking is analytical: Abel bought a diversified, brand-driven Delta with premium, loyalty, and Amex-linked revenue streams that did not exist in the commodity airline Buffett once rejected. If that thesis holds through the next fuel cycle, following the trade is defensible. Copying it blindly is not.

Contact [email protected] for any questions or corrections.

Shares of Delta Air Lines Inc. (DAL, Financials) were higher in early trading after Berkshire Hathaway increased its stake in the carrier. Regulatory filings show that Berkshire upped its investment in Delta to 8.7% as of June 30 from 6.1% previously. It's a big deal because Delta is the only airline that Berkshire owns right now.

Berkshire had stakes in numerous major U.S. airlines before, but sold its holdings in the industry during the pandemic. This time it's a more targeted approach to the sector – as shown by its greater concentration on Delta.

Berkshire's bigger position is a high-profile statement of confidence in Delta investors as airlines wrestle with fuel costs, capacity issues and changing travel demand. The size of the increase matters too. That's no little change in the portfolio, a jump from 6.1% to 8.7% is a substantial increase in ownership.

However, the filing covers Berkshire's holdings as of June 30, therefore does not indicate whether the position has changed since then. The challenge for investors is if Berkshire keeps adding and makes Delta an even bigger long-term commitment.

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United Airlines reportedly approached Delta Air Lines last year about a potential merger that would have combined two of the largest U.S. carriers.

United CEO Scott Kirby contacted Delta CEO Ed Bastian to pitch the potential tie-up, The Wall Street Journal reported Sunday, citing people familiar with the matter.

According to the outlet, leadership at Delta discussed the proposal and evaluated the potential benefits as part of "preliminary due diligence," but the talks did not advance, and both airlines ultimately moved on.

RYANAIR PASSENGER RECOUNTS BEING PARTLY SUCKED OUT AIRPLANE WINDOW: 'I AM LUCKY'

A United Airlines Boeing 777 lands at Newark Liberty International Airport on Jan. 29, 2026, in Newark, New Jersey. United Airlines reportedly approached Delta Air Lines last year about a potential merger. (Gary Hershorn/Getty Images)

A United spokesperson told FOX Business the airline had "nothing to share." Delta declined to comment.

A merger between United and Delta would have had sweeping implications for the airline industry and likely faced scrutiny from federal antitrust regulators and state attorneys general, according to The Wall Street Journal.

NEW BOEING AIRCRAFT DEVELOPMENT HAMPERED BY BACKLOG OF EXISTING ORDERS, SAYS CEO

A Delta Air Lines Airbus A220-100 approaches John F. Kennedy International Airport with its landing gear down on Nov. 14, 2019, in New York City. United CEO Scott Kirby reportedly contacted Delta CEO Ed Bastian to pitch the potential tie-up. (Nicolas Economou/NurPhoto via Getty Images)

The previously unreported talks come as United works to expand its global reach.

Kirby also reportedly explored a possible merger with American Airlines earlier this year. However, American rejected the proposal, and CEO Robert Isom criticized the idea as "anticompetitive," the WSJ reported.

UNITED TO OFFER TRAVELERS FREE FLIGHT CHANGES TO AVOID LANDING AT TRUMP INTERNATIONAL AIRPORT

United Airlines CEO Scott Kirby speaks at the U.S. Chamber of Commerce’s Global Aerospace Summit in Washington, D.C., on Sept. 9, 2025. Kirby has since downplayed the likelihood that United will pursue a major merger.  (Al Drago/Bloomberg via Getty Images)

Stocks In This Article: Kirby has since downplayed the likelihood that United will pursue a major merger. 

Last month, Kirby told Reuters that United remained open to buying airport slots, gates and other assets, but said a major consolidation deal was unlikely.

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"I think consolidation is unlikely for United," Kirby said at the International Air Transport Association’s annual meeting in Rio de Janeiro. "That doesn't mean we won't still be in the market to buy assets, but consolidation is a low probability."

Reuters contributed to this report.

Key Takeaways Delta's premium revenue rose 17%, while diverse streams generated 61% of total revenues. DAL's loyalty revenues grew 19%, with American Express remuneration reaching $2.4 billion. Delta Sync seatback spans 400-plus aircraft, while fuel and non-fuel costs remain elevated. Delta Air Lines ((DAL - Free Report) ) sits at the center of several trends shaping airline economics in 2026. Fuel volatility, premium demand, loyalty monetization and technology-driven personalization are all visible in its current setup.

For investors, the issue is how much of Delta’s advantage can translate into durable earnings support. United Airlines Holdings, Inc. ((UAL - Free Report) ) offers a peer comparison because network carriers face similar fuel, capacity and international demand tests. American Airlines Group Inc. ((AAL - Free Report) ) provides another reference point where revenue segmentation and cost control remain central to investor debate.

Delta Shows Premium Travel Staying StrongDelta’s revenue base continues to show that higher-yield travel remains firm. In the June quarter, premium revenue grew 17% year over year, while diverse revenue streams accounted for 61% of total revenues, up 2 points from the prior-year period.

Corporate demand also strengthened. Corporate sales grew double digits across all sectors, and premium corporate sales rose more than 25%, helped by demand for Delta Comfort and Delta Premium Select. That mix matters because airlines are no longer competing only on volume. Carriers with more premium exposure and better customer segmentation may be better positioned to defend revenue quality when fuel spikes or macro conditions become less predictable.

The Zacks Consensus Estimate for sales shows year-over-year growth for the third quarter of 2026, fourth quarter of 2026, full-year 2026 and 2027.

Image Source: Zacks Investment Research

DAL Loyalty Model Is Becoming More ValuableDelta’s loyalty ecosystem is becoming a larger part of its investment story. Loyalty and related revenues grew 19% in the June quarter as SkyMiles engagement expanded beyond air travel and deeper into partner activity.

American Express remuneration reached $2.4 billion in the quarter, up 16% year over year. The growth was supported by accelerating card acquisitions and the seventh straight quarter of double-digit growth in cardholder spend.

The value of the model is that it extends Delta’s economics beyond the seat sale. Enhanced travel benefits with American Express, partner activity and higher member engagement can help reduce dependence on purely cyclical airfare demand.

Delta AI Tools Deepen Customer ReachTechnology is becoming part of Delta’s revenue and loyalty strategy. Delta Sync now supports logged-in experiences across onboard channels, giving the company more ways to understand customers and tailor engagement during the trip.

Delta Sync seatback is on more than 400 aircraft, with a log-in rate of more than 40%. Delta Sync Wi-Fi log-in rates are approaching 50%, and about 30% of those customers remain in the platform.

Delta also plans to begin installing Amazon Leo low Earth orbit satellite technology on 500 aircraft starting in 2028. The broader point is not connectivity alone. Better logged-in engagement can improve personalization, retailing and long-term customer value.

DAL Reflects the New Margin BattlegroundDelta’s results also show why airline profitability remains exposed to external shocks. Adjusted fuel expense rose 77% year over year in the June quarter, while adjusted fuel price increased 75% to $3.93 per gallon.

The September-quarter outlook assumes an all-in fuel price of approximately $3.15 per gallon, including a refinery benefit of 5 cents per gallon. The refinery can help offset some pressure, but it does not eliminate fuel risk.

Cost discipline is equally important. Non-fuel cost per available seat mile increased 6.8% year over year in the June quarter, and wage, crew-related and recovery costs remain elevated. Delta is biasing capacity lower to protect margins, underscoring that the industry’s battleground is increasingly about profitability per seat, not just filling aircraft.

Delta Ratings Fit a Trend-Driven StoryThe bottom line is that Delta has several constructive trend signals, but fuel and cost volatility keep the story balanced. Premium demand, loyalty growth and technology-led personalization support revenue durability, while cost inflation limits the margin for error.

DAL currently carries a Zacks Rank #3 (Hold). That ranking fits a stock with favorable business drivers but enough earnings sensitivity to prevent a more decisive near-term signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores are more supportive. DAL has a Value Score of A, Momentum Score of A and VGM Score of A, suggesting attractive value and trading characteristics across the Zacks Style Score framework. Its Growth Score of C tempers the picture, making the stock a trend-positive airline name that still requires discipline around costs, fuel and execution. 

Delta Air Lines NYSE: DAL lived up to its motto, with the Q2 2026 earnings results showing strength, suggesting its shares can Keep Climbing. Drivers include outperformance driven by international demand, overall demand, premiumization, and structural cost advantages, which together provide ample cash flow.

Delta Air Lines Today

DAL

Delta Air Lines

$87.48 -1.52 (-1.70%)

As of 07/10/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$50.44▼

$95.68Dividend Yield0.98%

P/E Ratio14.51

Price Target$97.06

The critical detail in the release was the guidance, which forecasts that these trends will continue. More importantly, guidance was raised, prompting a robust response from analysts.

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While no upgrades or price target revisions were tracked within the first hours of the release, several commentaries hit the wires. Analyst commentary reaffirms the robust trends, including numerous initiations, upgrades, and price target increases ahead of the earnings release on July 10.

As it stands, MarketBeat tracks 27 analysts rating DAL as a consensus Moderate Buy; coverage is up versus the prior month, quarter, and year, with sentiment firming and an 89% Buy-side bias in the data. The consensus price target assumes fair value near the early-July highs, but the trend matters. Recent revisions place this market in the high-end range, between $100 and $116, which would be a fresh all-time high when reached.

Delta’s July Pullback: A Touch-and-Go Event, Buy the DipDelta’s price pullback reflects a market expecting strength, as the Q2 results and guidance revealed nothing but that. Revenue growth accelerated sequentially and year over year with a robust 18.7% advance, ahead of expectations.

Delta’s strength was seen across metrics, underpinned by a mere 1% increase in capacity. Total revenue per average seat mile (TRASM) grew by 12.4%, with strength in the main cabin and premium, which grew by 17%. Domestic revenue grew by 12% and international revenue by 8%, with cargo up by 39% and maintenance services by 32%. Loyalty, a forward-looking indicator, grew by 19%, and corporate traffic grew by double digits.

While margin contracted in the quarter, and slightly more than expected, the contraction was minimal. More importantly, top-line strength carried through to the bottom line, leaving the adjusted earnings per share of $1.56 above forecasts by 400 bps. Looking ahead, the company expects strength to continue and reaffirmed its guidance. The critical details are that free cash flow and capital returns will continue, and that the guidance may be cautious. Travel trends remain robust across leisure and business segments, potentially accelerated by falling energy prices.

Delta’s Cash Flow Recovery Story Takes FlightDelta’s stock price recovery is underpinned by growth but, more importantly, the cash flow it produces. Drivers of the share price include persistent debt reduction, improving investment-grade balance-sheet quality, and the return of capital to shareholders.

Q3 capital returns included dividends but no share buybacks, with the dividend annualizing to about 1%. The payout ratios reveal no red flags for investors, as the company is in a position to continue executing its strategy while increasing its dividend annually. Balance sheet highlights include increased cash, reduced debt, and improving equity, with equity up 4.6% year to date.

Institutional activity reflects the potential in a DAL investment. The group owns a substantial 70% of the stock and has been accumulating at a nearly $2-to-$1 pace over the trailing 12 months. They provide a solid support base and market tailwind that will likely remain in place, given the guidance. In this scenario, DAL’s share price might continue pulling back in Q3, but the downside is limited, and higher share prices are likely by year’s end. Critical support targets are near $85 and $80; lower lows are unexpected.

Delta’s risks center on cost controls and execution. Costs, including labor, continue to rise while a major C-suite transition is underway. Two retirements and one exec’s departure for new opportunities resulted in several promotions and consolidated roles. The risk lies in disruptive hiccups tied to the role changes, specifically during the upcoming seasonal shift. If Delta fails to match capacity to demand, it risks losing pricing power, which would be detrimental to both top- and bottom-line results. In the longer term, Delta is expected to sustain modest growth over the next five years.

The stock price action is favorable, despite the early Q3 price pullback. Delta is rising on a wave of strength, cash flow, and dividends that has yet to play out, leaving the underlying uptrend intact. The likely outcome is that support kicks in at or near the early July lows, leading to a trend-following signal and price rebound later this year. Signals of strength include MACD convergence on the weekly chart, suggesting the latest highs will at least be retested, and support at the 30-day exponential moving average.

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Delta Air Lines (DAL - Free Report) reported $17.67 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.1%. EPS of $1.56 for the same period compares to $2.10 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $17.76 billion, representing a surprise of -0.53%. The company delivered an EPS surprise of +3.31%, with the consensus EPS estimate being $1.51.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Delta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Passenger load factor: 84.8% versus the four-analyst average estimate of 85.9%.Revenue passenger miles: 66.77 billion versus the three-analyst average estimate of 67.17 billion.CASM - Ex: 14.09 cents versus 14.25 cents estimated by three analysts on average.Average price per fuel gallon, adjusted: $3.93 versus the three-analyst average estimate of $4.05.Available seat miles: 78.69 billion versus 78.25 billion estimated by three analysts on average.TRASM, adjusted: 22.45 cents versus the three-analyst average estimate of 22.49 cents.Passenger revenue per available seat mile: 19.83 cents versus the three-analyst average estimate of 20.19 cents.Total revenue per available seat mile: 25.11 cents versus 23.38 cents estimated by two analysts on average.Passenger mile yield: 23.38 cents versus 23.3 cents estimated by two analysts on average.Operating Revenues- Passenger: $15.61 billion compared to the $15.74 billion average estimate based on four analysts. The reported number represents a change of +12.6% year over year.Operating Revenues- Cargo: $294 million versus $224.17 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +38.7% change.Operating Revenues- Other: $3.86 billion versus the two-analyst average estimate of $3.21 billion. The reported number represents a year-over-year change of +50.1%.View all Key Company Metrics for Delta here>>>

Shares of Delta have returned +8.8% over the past month versus the Zacks S&P 500 composite's +2.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

June quarter earnings topped guidance on broad demand strength and strong execution, generating a double-digit return on invested capital

Expect continued momentum in September quarter with mid-teens revenue growth and double-digit margin

Affirming full-year guidance for adjusted EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion

Further strengthened investment grade balance sheet through debt paydown, and announced a 15 percent increase to dividend payment beginning in September quarter

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

"Today, we reported our June quarter results, and it is clear that Delta's brand and industry position are stronger than ever. We delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history, reflecting broad demand strength, growing brand preference and momentum across our diversified revenue base. This industry-leading performance is powered by the best people in the business," said Ed Bastian, Delta's chief executive officer.

"Delta is executing from a position of strength, and we expect momentum to carry into the second half with double-digit margins and a return to earnings growth. For the full year, we are affirming the guidance we set at the start of the year to grow earnings by 20 percent, overcoming a multi-billion dollar fuel headwind. This reinforces Delta's durability while positioning us to continue our momentum into 2027."

June Quarter 2026 GAAP Financial Results

Operating revenue of $19.8 billion Operating income of $1.9 billion with an operating margin of 9.4 percent Pre-tax income of $2.0 billion with a pre-tax margin of 10.2 percent Earnings per share of $2.44 Operating cash flow of $1.6 billion June Quarter 2026 Non-GAAP Financial Results

Operating revenue of $17.7 billion Operating income of $1.6 billion with an operating margin of 8.8 percent Pre-tax income of $1.4 billion with a pre-tax margin of 7.7 percent Earnings per share of $1.56 Operating cash flow of $1.7 billion Financial Guidance1

FY 2026

Earnings Per Share

$6.50 - $7.50

Free Cash Flow ($B)

$3 - $4

Gross Leverage2

Approx. 2x

3Q26

Total Revenue YoY (%)

Up Mid-Teens

Operating Margin

11% - 13%

Earnings Per Share

$2.00 - $2.50

Guidance for the September quarter assumes fuel at the forward curve as of July 2, 2026, and includes a refinery benefit of 5-cents per gallon. This results in a projected all-in fuel price for the quarter of approximately $3.15 per gallon.

Revenue Environment and Outlook

"Revenue grew 14 percent in the June quarter, at the high end of our expectations, increasing more than $2 billion over last year on broad demand strength," said Joe Esposito, Delta's chief commercial officer.

"With continued momentum across customer segments and diverse revenue streams, we are confident in the sustainability of yield and revenue strength. For the September quarter, we expect revenue to grow mid-teens over prior year on modest capacity growth, with unit revenue growth improving sequentially. While still early, current trends provide a constructive setup for this strength to extend into the December quarter."

Record June quarter revenue reflects broad demand strength and growing brand preference: June quarter total revenue increased 14 percent over the same period last year to a record $17.7 billion on approximately 1 percent capacity growth. Adjusted total unit revenue (TRASM) grew 12.4 percent over prior year. Main cabin unit revenue grew double-digits, marking the second consecutive quarter of positive main cabin growth. Domestic unit revenue grew 12 percent year-over-year and international unit revenue increased 8 percent, led by Latin. Diversified, high-margin revenue streams continue to differentiate Delta's performance: Diverse revenue streams accounted for 61 percent of total revenue, up 2 points versus the same period last year. Premium revenue grew 17 percent year-over-year on yield strength and continued investment in premium seats. MRO revenue growth of 32 percent was primarily on legacy engine platforms. Cargo revenue increased 39 percent, driven largely by volume. Loyalty momentum powered by growing member engagement across ecosystem: Loyalty and related revenue grew 19 percent, with SkyMiles member engagement continuing to expand beyond air travel within the partner ecosystem. American Express remuneration of $2.4 billion grew 16 percent over last year, supported by accelerating card acquisitions and the seventh consecutive quarter of double-digit year-over-year growth in cardholder spend. Travel products and non-air partnership revenue increased nearly 20 percent over prior year. Corporate sales3 grew double-digits in all sectors: Corporate sales accelerated in the June quarter, led by Aerospace & Defense, Banking, and Automotive, with strong performance in coastal and core hubs. Sustained strength in premium product demand drove a more than 25 percent increase in premium corporate sales, benefiting from recent investments in Delta Comfort and Delta Premium Select.

1 Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures

2 Adjusted debt to EBITDAR

3 Corporate travel sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period

Cost Performance and Outlook

"Delta delivered June quarter results above guidance, with an operating margin of 8.8 percent and earnings of $1.56 per share. In the September quarter, we expect earnings per share to grow over prior year to $2.00 to $2.50 on an operating margin of 11 to 13 percent," said Erik Snell, Delta's chief financial officer. "Non‑fuel unit cost performance is expected to improve modestly from the June quarter with further progression in the December quarter as capacity growth begins to normalize. This puts us back on a path toward our long-term framework of low-single-digit non-fuel unit cost growth."

June Quarter 2026 Cost Performance

Operating expense of $17.9 billion and adjusted operating expense of $16.1 billion Adjusted non-fuel costs of $11.1 billion Non-fuel CASM was 14.09¢, an increase of 6.8 percent year-over-year Adjusted fuel expense of $4.4 billion was up 77 percent year-over-year Adjusted fuel price of $3.93 per gallon increased 75 percent year-over-year with a refinery benefit of 11¢ per gallon inclusive of a 5¢ discrete impact from a temporary refinery outage Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.3 Balance Sheet, Cash and Liquidity

"Through the first half, we generated $4.1 billion of operating cash flow and delivered $1.4 billion of free cash flow. The durability of our cash generation enables us to consistently reinvest in the business, strengthen our balance sheet and grow shareholder returns. Debt reduction remains a top priority, and we expect to reach gross leverage of approximately 2x by year-end," Snell said.

Adjusted net debt of $13.6 billion at June quarter end, a reduction of $709 million from the end of 2025 Payments on debt and finance lease obligations for the June quarter of $536 million Weighted average interest rate of 4.9 percent with 78 percent fixed rate debt and 22 percent variable rate debt Adjusted operating cash flow in the June quarter of $1.7 billion, and with gross capital expenditures of $1.4 billion, free cash flow was $209 million Air Traffic Liability ended the quarter at $10.0 billion Liquidity4 of $7.7 billion at quarter-end, including $3.1 billion in undrawn revolver capacity

4 Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities

June Quarter 2026 Highlights

Operations, Network and Fleet

Led all carriers5 in on-time arrival and departure performance for the quarter and set an all-time6 Delta record for domestic mishandled baggage rate (MBR). Implemented proprietary Baggage AI technology in Atlanta which has driven improvement in Atlanta's year-to-date MBR by over 25 percent versus last year's strong baseline, with June improving 50 percent. Took delivery of 11 aircraft in the June quarter, including A350-900, A321neo, and A220-300 aircraft. Launched daily non-stop service from Los Angeles to Hong Kong and Chicago O'Hare, adding connectivity to key business markets from Los Angeles. Launched service to Porto, Malta, and Sardinia while adding service to Madrid, Nice, Rome, and Barcelona. Grew MRO presence and partnership portfolio with IndiGo (CFM56 engines) & LATAM (A320 components). Culture and People

Continued to invest in the Delta people with a 4 percent pay raise for eligible employees worldwide. Accrued nearly $500 million in profit sharing year-to-date towards next February's payout. Named to Points of Light's Civic 50 list for the ninth year in a row, the only commercial airline recognized among companies noted for their corporate social responsibility and civic engagement. Transported more than two dozen WWII veterans from Atlanta to Normandy, France to participate in D-Day remembrance ceremonies, honoring the 82nd anniversary of the Allied landings. Ranked No. 1 in Talent Readiness among the Wall Street Journal Leadership Institute's Best Companies for the Future index. Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the ninth consecutive year with 15,911 units of blood collected at 392 blood drives in the last 12 months. Customer Experience and Loyalty

Ranked No. 1 best U.S. airline for eighth consecutive year by The Points Guy. Unveiled Delta's next-generation Delta One suite for the A350-1000 fleet and announced an expanded suite offering for the A330ceo fleet, extending Delta's lead with the most business class suites of any U.S. airline. Enhanced Delta - American Express co-brand card portfolio with new travel benefits including a Delta exclusive benefit allowing card Members to check a second bag free on domestic Delta flights with no increase to the annual fee. Over 95 percent of aircraft are already equipped with fast, free Wi-Fi for SkyMiles members, and will reach 100 percent by year-end. New satellite upgrades are also coming online soon to deliver faster speeds and broader global coverage. Expanded Delta Sync partnerships, including new collaborations with The Wall Street Journal and Fox ONE to further enhance the onboard experience. Enhanced the partnership with T-Mobile, now offering T-Mobile customers who link their SkyMiles membership a complimentary premium beverage on board. Relaunched and expanded the decade-long partnership with Airbnb allowing SkyMiles members to earn miles on where they stay and on experiences once they arrive. Continued Delta Concierge rollout to over 50 percent of SkyMiles members, offering expanded self‑service and messaging during travel through an AI-enabled digital assistant in the Fly Delta app. Opened a second Delta One Lounge at LAX, growing system to five Delta One Lounges and 55 Sky Clubs. Environmental Sustainability

Issued the 2025 Delta Difference Report, highlighting Delta's continued commitment to a sustainable future. Began installation of innovative finlet aerodynamic devices on 737 fleet reducing emissions and fuel burn.

5 FlightStats preliminary data for Delta flights system wide. All carriers is defined as competitive set (AA, AS, B6, DL, UA, and WN) from Apr 1 - Jun 30, 2026. On-time performance includes A0, and A14. Departure performance defined as D0

6 Excludes COVID years

June Quarter 2026 Results

June quarter results have been adjusted primarily for third-party refinery sales, gains/losses on investments and Monroe hedge results as described in the reconciliations in Note A.

GAAP

$
Change

%
Change

($ in millions except per share and unit costs)

2Q26

2Q25

Operating income

1,864

2,102

(238)

(11) %

Operating margin

9.4 %

12.6 %

 (3.2) pts

(25) %

Pre-tax income

2,009

2,574

(565)

(22) %

Pre-tax margin

10.2 %

15.5 %

 (5.3) pts

(34) %

Net income

1,604

2,130

(526)

(25) %

Diluted earnings per share

2.44

3.27

(0.83)

(25) %

Operating revenue

19,757

16,648

3,109

19 %

Total revenue per available seat mile (TRASM) (cents)

25.11

21.44

3.67

17 %

Operating expense

17,893

14,546

3,347

23 %

Cost per available seat mile (CASM) (cents)

22.74

18.73

4.01

21 %

Fuel expense

4,109

2,458

1,651

67 %

Average fuel price per gallon

3.66

2.21

1.45

66 %

Operating cash flow

1,596

1,856

(260)

(14) %

Capital expenditures

1,458

1,209

249

21 %

Total debt and finance lease obligations

13,952

15,056

(1,104)

(7) %

Adjusted

$
Change

%
Change

($ in millions except per share and unit costs)

2Q26

2Q25

Operating income

1,563

2,064

(501)

(24) %

Operating margin

8.8 %

13.3 %

 (4.5) pts

(34) %

Pre-tax income

1,359

1,820

(461)

(25) %

Pre-tax margin

7.7 %

11.7 %

 (4.0) pts

(34) %

Net income

1,027

1,385

(358)

(26) %

Diluted earnings per share

1.56

2.12

(0.56)

(26) %

Operating revenue

17,666

15,507

2,159

13.9 %

TRASM (cents)

22.45

19.97

2.48

12.4 %

Operating expense

16,102

13,443

2,659

20 %

Non-fuel cost7

11,091

10,247

844

8 %

Non-fuel unit cost (CASM-Ex) (cents)

14.09

13.20

0.89

6.8 %

Fuel expense

4,410

2,497

1,913

77 %

Average fuel price per gallon

3.93

2.25

1.68

75 %

Operating cash flow

1,651

1,844

(193)

(10) %

Free cash flow

209

733

(524)

(71) %

Gross capital expenditures

1,442

1,168

274

23 %

Adjusted net debt

13,591

16,316

(2,725)

(17) %

7 Updated definition excludes aircraft fuel and related taxes, Third-party refinery sales, MRO expense, and profit sharing

About Delta Air Lines Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer. 

There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,500 daily Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other.

Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by Cirium for being the top on-time airline in North America for the fifth consecutive year.

We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.

Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.

As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential. 

A founding member of the SkyTeam alliance and powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta's premium product line is elevated by its unique partnership with Wheels Up Experience.

Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the award from Cirium, Delta has been recognized as the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; the top carrier for business travelers by Business Travel News; and best U.S. airline by Forbes Travel Guide's Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded companies in the U.S.

Forward Looking Statements
Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; failure of the technology we use or depend on to perform effectively, including new and emerging technologies; increases in the price of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), our wholly-owned subsidiary that operates the Trainer refinery; failure to achieve expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial or other covenants in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including those relating to the discharge of materials into the environment, waste management, pollution prevention measures and greenhouse gas emissions; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports where we operate; significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of laws and regulations governing environmental protection, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.

DELTA AIR LINES, INC

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(in millions, except per share data)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Operating Revenue:

Passenger

$    15,607

$    13,867

$     1,740

13 %

$    27,909

$    25,347

$     2,562

10 %

Cargo

294

212

82

39 %

521

421

100

24 %

Other

3,856

2,569

1,287

50 %

7,181

4,920

2,261

46 %

Total operating revenue

19,757

16,648

3,109

19 %

35,611

30,688

4,923

16 %

Operating Expense:

Salaries and related costs

4,762

4,402

360

8 %

9,302

8,485

817

10 %

Aircraft fuel and related taxes

4,109

2,458

1,651

67 %

6,851

4,869

1,982

41 %

Refinery expense

2,091

1,141

950

83 %

3,745

2,203

1,542

70 %

Contracted services

1,263

1,155

108

9 %

2,452

2,276

176

8 %

Landing fees and other rents

978

878

100

11 %

1,891

1,729

162

9 %

Aircraft maintenance materials and outside repairs

689

591

98

17 %

1,397

1,237

160

13 %

Regional carrier expense

673

651

22

3 %

1,322

1,264

58

5 %

Passenger commissions and other selling expenses

726

673

53

8 %

1,316

1,224

92

8 %

Depreciation and amortization

656

602

54

9 %

1,291

1,209

82

7 %

Passenger service

489

482

7

1 %

918

912

6

1 %

MRO expense

273

229

44

19 %

601

369

232

63 %

Profit sharing

328

470

(142)

(30) %

493

594

(101)

(17) %

Aircraft rent

168

137

31

23 %

311

274

37

14 %

Other

688

677

11

2 %

1,356

1,372

(16)

(1) %

Total operating expense

17,893

14,546

3,347

23 %

33,246

28,017

5,229

19 %

Operating Income

1,864

2,102

(238)

(11) %

2,365

2,671

(306)

(11) %

Non-Operating Income/(Expense):

Interest expense, net

(144)

(172)

28

(16) %

(296)

(350)

54

(15) %

Gain/(loss) on investments, net

349

735

(386)

(53) %

(202)

696

(898)

NM

Loss on extinguishment of debt

(1)

(20)

19

(95) %

(5)

(20)

15

(75) %

Miscellaneous, net

(59)

(71)

12

(17) %

(68)

(102)

34

(33) %

Total non-operating income/(expense), net

145

472

(327)

(69) %

(571)

224

(795)

NM

Income Before Income Taxes

2,009

2,574

(565)

(22) %

1,794

2,895

(1,101)

(38) %

Income Tax Provision

(405)

(444)

39

(9) %

(479)

(525)

46

(9) %

Net Income

$     1,604

$     2,130

$      (526)

(25) %

$     1,315

$     2,370

$    (1,055)

(45) %

Basic Earnings Per Share

$      2.45

$      3.28

$      2.01

$      3.66

Diluted Earnings Per Share

$      2.44

$      3.27

$      2.00

$      3.63

Basic Weighted Average Shares Outstanding

654

649

653

647

Diluted Weighted Average Shares Outstanding

658

652

657

652

DELTA AIR LINES, INC

Passenger Revenue

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(in millions)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Ticket - Main cabin

$    6,851

$    6,347

$      504

8 %

$   12,256

$   11,709

$      547

5 %

Ticket - Premium products

6,920

5,899

1,021

17 %

12,282

10,605

1,677

16 %

Loyalty travel awards

1,247

1,092

155

14 %

2,277

2,033

244

12 %

Travel-related services

589

529

60

11 %

1,094

1,000

94

9 %

Passenger revenue

$   15,607

$   13,867

$    1,740

13 %

$   27,909

$   25,347

$    2,562

10 %

DELTA AIR LINES, INC

Other Revenue

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(in millions)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Refinery

$    2,091

$    1,141

$      950

83 %

$    3,745

$    2,203

$    1,542

70 %

Loyalty and related

1,344

1,127

217

19 %

2,565

2,209

356

16 %

MRO

315

239

76

32 %

695

390

305

78 %

Miscellaneous

106

62

44

71 %

176

118

58

49 %

Other revenue

$    3,856

$    2,569

$    1,287

50 %

$    7,181

$    4,920

$    2,261

46 %

DELTA AIR LINES, INC

Total Revenue

(Unaudited)

Increase (Decrease)

2Q26 vs 2Q25

Revenue

2Q26 ($M)

Change

Unit Revenue

Yield

Capacity

Domestic

$         10,673

15 %

12 %

13 %

2 %

Atlantic

3,112

8 %

7 %

9 %

1 %

Latin America

990

4 %

12 %

13 %

(7) %

Pacific

832

15 %

7 %

7 %

8 %

Passenger Revenue

$         15,607

13 %

11 %

12 %

1 %

Cargo Revenue

294

39 %

Other Revenue

3,856

50 %

Total Revenue

$         19,757

19 %

17 %

       Third Party Refinery Sales

(2,091)

Total Revenue, adjusted (See Note A)

$         17,666

13.9 %

12.4 %

DELTA AIR LINES, INC.

Statistical Summary

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

Change

2026

2025

Change

Revenue passenger miles (millions)

66,767

66,417

1

%

123,236

122,095

1

%

Available seat miles (millions)

78,694

77,645

1

%

147,857

146,045

1

%

Passenger mile yield (cents)

23.38

20.88

12

%

22.65

20.76

9

%

Passenger revenue per available seat mile (cents)

19.83

17.86

11

%

18.88

17.36

9

%

Total revenue per available seat mile (cents)

25.11

21.44

17

%

24.08

21.01

15

%

TRASM, adjusted - see Note A (cents)

22.45

19.97

12.4

%

21.55

19.50

10

%

Cost per available seat mile (cents)

22.74

18.73

21

%

22.48

19.18

17

%

CASM-Ex  - see Note A (cents)

14.09

13.20

6.8

%

14.58

13.68

7

%

Passenger load factor

84.8 %

85.5 %

(1)

pt

83.3 %

83.6 %

—

pts

Fuel gallons consumed (millions)

1,122

1,112

1

%

2,110

2,088

1

%

Average price per fuel gallon

$     3.66

$     2.21

66

%

$      3.25

$      2.33

39

%

Average price per fuel gallon, adjusted - see Note A

$     3.93

$     2.25

75

%

$      3.32

$      2.34

42

%

DELTA AIR LINES, INC

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

June 30,

(in millions)

2026

2025

Cash Flows From Operating Activities:

Net income

$           1,604

$           2,130

Depreciation and amortization

656

602

(Gain) loss on fair value investments

(337)

(731)

Changes in air traffic liability

(721)

(1,129)

Changes in profit sharing

325

469

Changes in balance sheet and other, net

69

516

     Net cash provided by operating activities

1,596

1,856

Cash Flows From Investing Activities:

Property and equipment additions:

Flight equipment, including advance payments

(1,244)

(996)

Ground property and equipment, including technology

(214)

(213)

Acquisition of strategic investments and related

(51)

—

Other, net

(3)

10

     Net cash used in investing activities

(1,512)

(1,199)

Cash Flows From Financing Activities:

Proceeds from long-term obligations

103

1,998

Payments on debt and finance lease obligations

(536)

(2,941)

Cash dividends

(123)

(97)

Other, net

10

(29)

     Net cash used in financing activities

(546)

(1,069)

Net Decrease in Cash, Cash Equivalents and Restricted Cash Equivalents

(462)

(412)

Cash, cash equivalents and restricted cash equivalents at beginning of period

5,235

3,941

Cash, cash equivalents and restricted cash equivalents at end of period

$           4,773

$           3,529

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the
same such amounts shown above:

Current assets:

     Cash and cash equivalents

$           4,665

$           3,331

     Restricted cash included in prepaid expenses and other

86

96

Other assets:

     Restricted cash included in other noncurrent assets

22

102

Total cash, cash equivalents and restricted cash equivalents

$           4,773

$           3,529

DELTA AIR LINES, INC

Consolidated Balance Sheets

(Unaudited)

June 30,

December 31,

(in millions)

2026

2025

ASSETS

Current Assets:

Cash and cash equivalents

$                4,665

$                4,310

Accounts receivable, net

4,307

2,850

Fuel, expendable parts and supplies inventories, net

2,558

1,601

Prepaid expenses and other

2,706

2,207

     Total current assets

14,236

10,968

Noncurrent Assets:

Property and equipment, net

41,544

39,743

Operating lease right-of-use assets

6,162

6,244

Goodwill

9,753

9,753

Identifiable intangibles, net

5,962

5,966

Equity investments

4,041

4,222

Other noncurrent assets

4,623

4,421

     Total noncurrent assets

72,085

70,349

Total assets

$               86,321

$               81,317

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current maturities of debt and finance leases

$                3,442

$                1,605

Current maturities of operating leases

869

809

Air traffic liability

10,020

7,157

Accounts payable

6,738

5,226

Accrued salaries and related benefits

3,935

4,906

Loyalty program deferred revenue

5,243

4,876

Fuel card obligation

1,100

1,100

Other accrued liabilities

2,257

1,945

     Total current liabilities

33,604

27,624

Noncurrent Liabilities:

Debt and finance leases

10,510

12,507

Noncurrent operating leases

5,163

5,353

Pension, postretirement and related benefits

3,066

3,156

Loyalty program deferred revenue

4,327

4,386

Deferred income taxes, net

3,916

3,444

Other noncurrent liabilities

3,920

3,994

     Total noncurrent liabilities

30,902

32,840

Commitments and Contingencies

Stockholders' Equity:

21,815

20,853

Total liabilities and stockholders' equity

$               86,321

$               81,317

Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate exactly due to rounding.

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.

Forward Looking Projections. Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as those used in the reconciliations below will not be known until the end of the period and could be significant.

Adjustments. These reconciliations include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and for the reasons indicated below:

Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.

MTM adjustments and settlements on hedges. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. MTM fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts closed (i.e., settled) during the applicable period. With respect to hedges related to Monroe's inventory, settlements often occur before the related refinery inventory is sold. Beginning in 2026, settlement gains and losses related to Monroe's inventory that remains on-hand at period end are excluded from our adjusted results. These settlement gains and losses will be reflected in adjusted results during the period the inventory is sold. This change was made to match the timing of expense and revenue recognition and we have similarly adjusted the presentation of reconciliations for prior periods included here.

MTM adjustments on investments. Unrealized MTM gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.

Loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these losses allows investors to better understand and analyze our core operational performance in the periods shown.

Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted

Three Months Ended

2Q26 vs 2Q25
% Change

2Q26 vs 2Q25
$ Change

(in millions)

June 30, 2026

September 30, 2025

June 30, 2025

Operating revenue

$               19,757

$             16,673

$               16,648

Adjusted for:

Third-party refinery sales

(2,091)

(1,476)

(1,141)

Operating revenue, adjusted

$               17,666

$             15,197

$               15,507

14 %

$2,159

Three Months Ended

% Change

June 30, 2026

September 30, 2025

June 30, 2025

TRASM (cents)

25.11

21.09

21.44

Adjusted for:

Third-party refinery sales

(2.66)

(1.87)

(1.47)

TRASM, adjusted

22.45

19.22

19.97

12.4 %

Six Months Ended

June 30, 2026

June 30, 2025

TRASM (cents)

24.08

21.01

Adjusted for:

Third-party refinery sales

(2.53)

(1.51)

TRASM, adjusted

21.55

19.50

Operating Income, adjusted

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Operating income

$                1,864

$                2,102

Adjusted for:

MTM adjustments and settlements on hedges

(301)

(39)

Operating income, adjusted

$                1,563

$                2,064

Operating Margin, adjusted

Three Months Ended

June 30, 2026

June 30, 2025

Operating margin

9.4 %

12.6 %

Adjusted for:

Third-party refinery sales

0.9

0.9

MTM adjustments and settlements on hedges

(1.5)

(0.2)

Operating margin, adjusted

8.8 %

13.3 %

Pre-Tax Income, Net Income, and Diluted Earnings per Share, adjusted

Three Months Ended

Three Months Ended

June 30, 2026

June 30, 2026

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           2,009

$            (405)

$           1,604

$                2.44

Adjusted for:

MTM adjustments on investments

(349)

MTM adjustments and settlements on hedges

(301)

Loss on extinguishment of debt

1

Non-GAAP

$           1,359

$            (332)

$           1,027

$                1.56

Three Months Ended

Three Months Ended

September 30, 2025

September 30, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           1,777

$            (360)

$           1,417

$                2.17

Adjusted for:

MTM adjustments on investments

(311)

MTM adjustments and settlements on hedges

5

Loss on extinguishment of debt

6

Non-GAAP

$           1,477

$            (363)

$           1,114

$                1.70

Three Months Ended

Three Months Ended

June 30, 2025

June 30, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           2,574

$            (444)

$           2,130

$                3.27

Adjusted for:

MTM adjustments on investments

(735)

MTM adjustments and settlements on hedges

(39)

Loss on extinguishment of debt

20

Non-GAAP

$           1,820

$            (435)

$           1,385

$                2.12

Year Ended

Year Ended

December 31, 2025

December 31, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           6,185

$          (1,180)

$           5,005

$                  7.66

Adjusted for:

MTM adjustments on investments

(1,212)

MTM adjustments and settlements on hedges

(21)

Loss on extinguishment of debt

26

Non-GAAP

$           4,977

$          (1,179)

$           3,798

$                  5.81

Pre-Tax Margin, adjusted

Three Months Ended

June 30, 2026

June 30, 2025

Pre-tax margin

10.2 %

15.5 %

Adjusted for:

Third-party refinery sales

0.8

0.8

MTM adjustments on investments

(1.8)

(4.4)

MTM adjustments and settlements on hedges

(1.5)

(0.2)

Loss on extinguishment of debt

—

0.1

Pre-tax margin, adjusted

7.7 %

11.7 %

Operating Cash Flow, adjusted. We present operating cash flow, adjusted because management believes adjusting for the following item provides a more meaningful measure for investors:

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities. We adjust for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's operating cash flow that is core to our operations in the periods shown.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Net cash provided by operating activities

$                1,596

$                1,856

Adjusted for:

Net cash flows related to certain airport construction projects and other

55

(12)

Operating cash flow, adjusted

$                1,651

$                1,844

Six Months Ended

(in millions)

June 30, 2026

Net cash provided by operating activities

$                4,027

Adjusted for:

Net cash flows related to certain airport construction projects and other

38

Net cash provided by operating activities, adjusted

$                4,065

Operating revenue, adjusted related to premium products and diverse revenue streams

Three Months Ended

% Change

(in millions)

June 30, 2026

June 30, 2025

Operating revenue

$             19,757

$             16,648

Adjusted for:

     Third-party refinery sales

(2,091)

(1,141)

Operating revenue, adjusted

$             17,666

$             15,507

Less: main cabin revenue

(6,851)

(6,347)

Operating revenue, adjusted related to premium products and diverse revenue streams

$             10,815

$              9,160

18 %

Percent of operating revenue, adjusted related to premium products and diverse revenue streams

61 %

59 %

 2 pts

Operating Expense, adjusted

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Operating expense

$               17,893

$               14,546

Adjusted for:

Third-party refinery sales

(2,091)

(1,141)

MTM adjustments and settlements on hedges

301

39

Operating expense, adjusted

$               16,102

$               13,443

Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex")

We adjust operating expense and CASM for certain items described above, as well as the following items and reasons described below:

Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance.

MRO expense. We adjust for MRO expenses because this adjustment allows investors to better understand and analyze the airline's recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Operating expense

$               17,893

$               14,546

Adjusted for:

Aircraft fuel and related taxes

(4,109)

(2,458)

Third-party refinery sales

(2,091)

(1,141)

MRO expense

(273)

(229)

Profit sharing

(328)

(470)

Non-Fuel Cost

$               11,091

$               10,247

Three Months Ended

2Q26 vs 2Q25
% Change

June 30, 2026

September 30, 2025

June 30, 2025

CASM (cents)

22.74

18.96

18.73

Adjusted for:

Aircraft fuel and related taxes

(5.22)

(3.25)

(3.17)

Third-party refinery sales

(2.66)

(1.87)

(1.47)

MRO expense

(0.35)

(0.27)

(0.29)

Profit sharing

(0.42)

(0.50)

(0.61)

CASM-Ex

14.09

13.08

13.20

6.8 %

Six Months Ended

% Change

June 30, 2026

June 30, 2025

CASM (cents)

22.48

19.18

Adjusted for:

Aircraft fuel and related taxes

(4.63)

(3.33)

Third-party refinery sales

(2.53)

(1.51)

MRO expense

(0.41)

(0.25)

Profit sharing

(0.33)

(0.41)

CASM-Ex

14.58

13.68

7 %

Total fuel expense, adjusted and Average fuel price per gallon, adjusted

Average Price Per Gallon

Three Months Ended

Three Months Ended

June 30,

June 30,

% Change

June 30,

June 30,

% Change

(in millions, except per gallon data)

2026

2025

2026

2025

Total fuel expense

$        4,109

$        2,458

$          3.66

$          2.21

Adjusted for:

MTM adjustments and settlements on hedges

301

39

0.27

0.04

Total fuel expense, adjusted

$        4,410

$        2,497

77 %

$          3.93

$          2.25

75 %

Average Price Per Gallon

Six Months Ended

Six Months Ended

June 30,

June 30,

% Change

June 30,

June 30,

% Change

(in millions, except per gallon data)

2026

2025

2026

2025

Total fuel expense

$        6,851

$        4,869

$          3.25

$          2.33

Adjusted for:

MTM adjustments and settlements on hedges

151

24

0.07

0.01

Total fuel expense, adjusted

$        7,001

$        4,892

43 %

$          3.32

$          2.34

42 %

Free Cash Flow. We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive compensation programs. Free cash flow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) pension plan contributions, (ii) net cash flows related to certain airport construction projects and other, and (iii) strategic investments and related. These adjustments are made for the following reasons:

Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations.

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are core to our operations in the periods shown.

Strategic investments and related. Certain cash flows related to our investments in and related transactions with other airlines and associated companies are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Net cash provided by operating activities

$                1,596

$                1,856

Net cash used in investing activities

(1,512)

(1,199)

Adjusted for:

Pension plan contributions

4

47

Net cash flows related to certain airport construction projects and other

70

28

Strategic investments and related

51

—

Free cash flow

$                  209

$                  733

Six Months Ended

(in millions)

June 30, 2026

Net cash provided by operating activities

$                4,027

Net cash used in investing activities

(2,775)

Adjusted for:

Pension plan contributions

4

Net cash flows related to certain airport construction projects and other

75

Strategic investments and related

105

Free cash flow

$                1,436

Adjusted Net Debt. We use adjusted gross debt, including fleet operating lease liabilities (comprised of aircraft and engine leases and regional aircraft leases embedded within our capacity purchase agreements) and unfunded pension liabilities (if applicable), in addition to adjusted debt and finance leases, to present estimated financial obligations. We reduce adjusted total debt by cash, cash equivalents, and LGA restricted cash, resulting in adjusted net debt, to present the amount of assets needed to satisfy the debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile.

(in millions)

June 30, 2026

December 31,
2025

June 30, 2025

2Q26 vs 4Q25
$ Change

Debt and finance lease obligations

$            13,952

$            14,113

$            15,056

Plus: sale-leaseback financing liabilities

1,749

1,779

1,807

Plus: unamortized discount/(premium) and debt issue cost, net and other

(12)

(6)

5

Adjusted debt and finance lease obligations

$            15,688

$            15,885

$            16,868

Plus: fleet operating lease liabilities

2,591

2,780

2,880

Adjusted gross debt

$            18,279

$            18,665

$            19,749

Less: cash and cash equivalents

(4,665)

(4,310)

(3,331)

Less: LGA restricted cash

(22)

(56)

(102)

Adjusted net debt

$            13,591

$            14,300

$            16,316

$         (709)

Gross Capital Expenditures. We adjust capital expenditures for the following item to determine gross capital expenditures for the reason described below:

Net cash flows related to certain airport construction projects. Cash flows related to certain airport construction projects are included in capital expenditures. We adjust for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either funded with restricted cash specific to these projects or reimbursed by a third party.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Flight equipment, including advance payments

$                1,244

$                  996

Ground property and equipment, including technology

214

213

Adjusted for:

Net cash flows related to certain airport construction projects

(16)

(41)

Gross capital expenditures

$                1,442

$                1,168

After-tax Return on Invested Capital ("ROIC"). We present after-tax return on invested capital as management believes this metric is helpful to investors in assessing the company's ability to generate returns using its invested capital. Return on invested capital is tax-effected adjusted operating income (using our effective tax rate for each respective period) divided by average adjusted invested capital. Average stockholders' equity and average adjusted gross debt are calculated using amounts as of the end of the current period and comparable period in the prior year. All adjustments to calculate ROIC are intended to provide a more meaningful comparison of our results to comparable companies.

Interest expense included in aircraft rent. This adjustment relates to interest expense related to operating lease transactions. Adjusting for these results allows investors to better understand our core operational performance in the periods shown as it neutralizes the effect of lease financing structure.

Twelve Months Ended

(in millions)

June 30, 2026

Operating income

$                  5,516

Adjusted for:

MTM adjustments and settlements on hedges

(148)

Interest expense included in aircraft rent

132

Adjusted operating income

$                  5,500

Tax effect

(1,294)

Tax-effected adjusted operating income

$                  4,206

Average stockholders' equity

$                19,628

Average adjusted gross debt

19,014

Average adjusted invested capital

$                38,642

After-tax Return on Invested Capital

10.9 %

SOURCE Delta Air Lines