Key Takeaways Delta Air Lines plans 45-plus round-trip flights and 6,000 more seats from Boston for spring 2027 travel.DAL targets Florida, the Caribbean & Mexico, boosting leisure-route capacity 15% over the 2026 holiday.Competition from JBLU & ALGT puts focus on DAL's capacity management, ticket pricing and profitability.
Delta Air Lines (DAL - Free Report) is strengthening its competitive position in Boston through a targeted expansion of its seasonal flight schedule, responding to strong demand for leisure travel during the 2027 Patriots’ Day and spring break period. The airline plans to add more than 45 round-trip flights and 6,000 seats, increasing capacity across selected leisure routes by 15% compared with the corresponding 2026 holiday period. The expansion reflects Delta’s efforts to capitalize on peak travel demand while improving connectivity to popular vacation destinations.
The additional capacity primarily targets Florida, the southeastern United States, the Caribbean and Mexico, with increased frequencies to destinations such as Orlando, Sarasota, Fort Myers, Aruba and Cancun. Delta is also introducing seasonal nonstop service to Destin-Fort Walton Beach, Florida and deploying larger aircraft on select flights to New Orleans. These adjustments will allow the airline to accommodate higher passenger volumes during concentrated travel periods while leveraging its existing Boston network.
Delta’s expansion comes amid intensifying competition for seasonal leisure travelers. JetBlue Airways (JBLU - Free Report) has expanded its Florida network by connecting Boston to Destin-Fort Walton Beach, while Allegiant Travel Company (ALGT - Free Report) announced nine new nonstop routes in August 2026, including three seasonal connections from Boston to Florida. These developments highlight the importance of point-to-point connectivity and flexible capacity planning as airlines compete for spring break demand.
The expansion could support Delta’s passenger revenues by increasing seat availability on routes that experience seasonal demand peaks. However, the financial benefits will depend on load factors, ticket pricing, operating costs and the extent to which the additional capacity generates incremental demand rather than shifting passengers from existing flights. Seasonal additions also require careful capacity management to avoid weaker yields if supply outpaces demand.
Overall, Delta’s planned schedule expansion underscores its focus on optimizing its Boston network and capturing leisure travel opportunities during key holiday periods. While the additional flights could strengthen its competitive position across popular vacation markets, sustained profitability will depend on disciplined capacity deployment and effective revenue management amid competition from JetBlue, Allegiant and other carriers.
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.
First Citizens Bank and Trust Co. lifted its holdings in Delta Air Lines, Inc. (NYSE: DAL) by 277.8% in the third quarter, according to the company in its most recent filing with the SEC. The fund owned 11,129 shares of the transportation company's stock after acquiring an additional 8,183 shares during the quarter.
Delta Air Lines may have the best in-flight WiFi on transpacific flights. Kevin Carter/Getty Images Delta Air Lines has faced an onslaught of criticism for its lack of Starlink internet, but its current free WiFi service is getting an upgrade this month.
Elon Musk said CEO Ed Bastian should lose his job over his decision to tap Amazon Leo, with installation starting in 2028, instead of Starlink. United Airlines also took aim at its rival by offering loyalty program status matches. Its offer said, "Don't keep buffering: switch to United and get the fastest WiFi in the sky."
However, there may be some flights where Delta's WiFi is the cream of the crop.
United was one of the first airlines to sign up for Musk's satellite internet service, back in 2024. Since then, it has been installing Starlink terminals on its airplanes at a fairly impressive rate, but there is still a way to go.
In an announcement on Thursday, United said Starlink is now equipped on more than 40% of its fleet. It has over 1,600 airplanes, including mainline aircraft and regional ones operated by United Express partners. It hopes that all its airplanes will have Starlink by the end of next year.
But for long-haul flights, passengers are likely to be out of luck. Only six of its 244 wide-body airplanes have Starlink.
While United flies some narrow-body airplanes to Europe, it uses wide-body airplanes to carry passengers from the US mainland to Asia. Its Boeing 787-9s are still awaiting Federal Aviation Administration certification before Starlink can be used on them.
Delta currently uses Viasat's internet service. Unlike Starlink's constellation of over 10,000 satellites in low Earth orbit, Viasat uses geostationary satellites. These orbit roughly 22,000 miles above the equator, rather than a few hundred miles above Earth. That greater distance can add latency, while available capacity varies by region.
However, Viasat says its latest satellites, VS-3, are designed to add over 1 terabit per second of capacity to its network.
F3, the third satellite in this constellation, launched in April on a SpaceX Falcon Heavy rocket. It is used for connections in the Asia-Pacific region, including Delta's transpacific flights.
The airline's website says its free Delta Sync WiFi service is coming online this month for Pacific routes.
Some travelers have been posting on X singing its praises.
"As of today you will get much faster WiFi speeds on Delta aircraft than United aircraft if flying transpacific," Ben Bearup posted on Tuesday. His posts about aviation and business have gained him nearly 9,000 followers.
It appears to be a small win for Delta in the airline WiFi wars, but United's pace in installing Starlink suggests it will maintain the upper hand before Amazon Leo comes online.
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Pete Syme You're currently following this author! Click to unsubscribe from email alerts.
Pete Syme is an aviation reporter for Business Insider, based in London.He writes about all things related to the industry, from aviation safety and CEO interviews to route reveals and airplane tours. Pete also uses data for industry analyses and to visualize breaking news events.Before joining Business Insider in 2022, he graduated with an MA in Newspaper Journalism from City, University of London, and a BA in English from the University of Exeter.
On October 14, 2026, Delta Air Lines Inc DAL shares fell 3.7% to a current price of $76.65, marking a notable decline within the context of its 52-week range of $55.03 to $95.68. The stock has experienced a year-to-date gain of 11.3% and a 1-year increase of 26.5%, but the recent downturn highlights potential concerns among investors.
GF Value™ verdict: The current price is $76.65, compared to a GF Value™ estimate of $65.10, indicating the stock is 17.7% overvalued. GF Score™ of 84/100 (Strong), suggesting robust overall performance metrics. Notable insider activity: Insiders sold $124.5M worth of shares over the past 12 months, without any buying activity.Is DAL Overvalued or Undervalued?The current price of Delta Air Lines Inc DAL of $76.65 is significantly above the GF Value™ estimate of $65.10, marking the stock as 17.7% overvalued. This overvaluation raises questions about the risk associated with investing at this price point, particularly given the current market volatility and changing consumer behaviors in the transportation sector. The GF Valuation label of "Modestly Overvalued" further supports this assessment, indicating that while the stock may not be egregiously overpriced, it does lack a margin of safety for investors looking for value opportunities.
GF Value™ is GuruFocus' proprietary estimate of intrinsic value, derived from an analysis of historical trading multiples, past business growth, and projections for future performance. Given the current valuation metrics, potential investors may want to consider the implications of a premium price in the context of the airline industry's cyclical nature, especially if economic conditions shift.
How Does DAL's Valuation Compare to Its History?Metric Current Historical P/E (TTM) 15.3x 9.8x Forward P/E 10.1x -The current P/E (TTM) of 15.3x is significantly above the 5-year median P/E of 9.8x, indicating that shares are trading at a premium compared to their historical valuations. This P/E analysis aligns with the GF Value™ verdict of being overvalued, suggesting that investors may be paying more for the stock than its historical performance would justify.
What Does DAL's GF Score™ Tell Us?The GF Score™ is a composite metric that evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. Delta Air Lines holds a GF Score™ of 84/100, indicating strong overall performance. Its strongest sub-ranks are in profitability (8/10) and momentum (10/10), while its weakest area is valuation (5/10).
Metric Rating GF Score™ 84 Financial Strength 6/10 Profitability 8/10 Growth 7/10 Valuation 5/10 Momentum 10/10The combination of a strong profitability rank and an exceptional momentum rank suggests that DAL is performing well in generating profits and maintaining market interest. However, the valuation rank indicates that the stock is currently less attractive from a pricing standpoint, reinforcing the conclusion drawn from the GF Value™ analysis.
What Are Gurus and Insiders Doing with DAL?Currently, 15 gurus hold Delta Air Lines stock, with 7 adding to their positions and 7 trimming theirs in recent quarters. This mixed activity among gurus suggests a divergence of opinion on the stock's future prospects, which could reflect varying analyses of its valuation and growth potential. Notably, insiders have sold $124.5M worth of shares over the past year without any buying activity, which typically raises red flags about the company's prospects from an insider perspective.
The lack of insider buying, combined with the significant selling, suggests that insiders may not be confident in the stock's future performance. This pattern can serve as a cautionary signal for potential investors, as it may indicate that those closest to the company are not optimistic about its short-term growth potential.
What This Means for InvestorsIn summary, Delta Air Lines Inc DAL is currently classified as overvalued based on the GF Value™ estimate, which suggests a price correction may be needed to align with intrinsic value. The strong GF Score™ indicates solid performance metrics, but the valuation concerns, coupled with insider selling, suggest that potential investors should approach with caution. For more detailed information on Delta Air Lines, please visit the Delta Air Lines Inc (DAL) stock page.
Frequently Asked QuestionsWhat is DAL's GF Score™?
DAL has a GF Score™ of 84/100, indicating strong overall performance across various metrics.
Is DAL overvalued or undervalued?
According to the GF Value™ verdict, DAL is overvalued at its current price of $76.65, compared to an estimated intrinsic value of $65.10.
What is DAL's P/E ratio?
The current P/E (TTM) ratio is 15.3x, which is significantly above its historical 5-year median of 9.8x, indicating that it is trading at a premium compared to past valuations.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures
I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
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.
Delta Air Lines, the country's most profitable airline, has a problem serving its top-tier customers: not enough Porsches.
The airline uses a fleet of 40 of the luxury vehicles to drive its high-value flyers right to the plane.
"What's happened over the last several years is the demand has continued to rise, and we realized that the 40 cars that we have weren't enough to meet the demand. So we're moving that fleet to 70," Ranjan Goswami, Delta's chief marketing and product officer, told CNBC.
It's just one of many changes Delta is making for customers who fly in its most luxurious and expensive cabin, known as Delta One. The Porsche service is part of a VIP add-on option.
The carrier on Wednesday unveiled new crockery for the cabins, new Missoni mini pillows and fresh food and beverage menus, including Champagne served over sorbet and Blanton's bourbon. Many of the new items will appear on flights originating in Los Angeles later this month and on other routes in the coming months.
Delta is also planning to debut updated suites with a bigger screen and a more cushioned, lighter lie-flat seat when it starts flying its first Airbus A350-1000 planes early next year.
Delta didn't announce changes to the coach and premium economy cabins.
The airline's executives said the company is already thinking about adjustments on other aircraft, including smaller Airbus jets and on Boeing 787 Dreamliners that Delta has ordered and that will come in the next decade.
Delta has invested heavily in premium service for close to two decades, and United Airlines has followed suit for a little over 10 years. Other carriers are also leaning into demand for higher-priced options.
Read more about airlines' race to win over big spendersAlaska Airlines unveils massive premium cabin overhaul in high-end travel raceBudget airline king Bill Franke warms to first-class seats and premium upgradesUnited ditches more economy seats to make room for bigger premium cabins with new layoutsCaviar and privacy: Airlines' business-class wars are hereAmerican Airlines is arriving late to the luxury travel boom. Can it catch up?First-class seats are getting so fancy they’re holding up new airplanesAirlines can’t add high-end seats fast enough as travelers treat themselves to first class"You got to keep looking at the next cycle of what customers want, and you got to start planning for it now," Goswami said.
He said Delta focused on details and quality with its latest project for Delta One so that the items, from sliding suite doors to new Delta-logo-emblazoned dinnerware, are made to last. The company tested some of those items to check for chipping, but there are other challenges, like customers liking them too much.
"I think people are going to love a couple of items, although we hope they don't steal them," he said.
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
The bumpy ride for Delta Air Lines Inc. NYSE: DAL may likely continue. In its Q3 2026 earnings report, the company just pulled back its full-year profit guidance by more than a dollar per share at the midpoint.
Delta Air Lines Today
DAL
Delta Air Lines
$78.87 -1.24 (-1.55%)
As of 09:51 AM Eastern
This is a fair market value price provided by Massive. Learn more.
$55.03▼
$95.681.09%
15.80
$99.65
This is one of the largest single-quarter cuts to earnings guidance that the company has ever made. The primary reason for the cautious approach from Delta management is the high cost of fuel, largely tied to turmoil in the Middle East and disrupted global trade.
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This puts Delta investors—and those focused on airlines in general—in a tough spot. Amid a fragile post-COVID recovery, this shock could reverberate across the industry, affecting multiple companies. With other firms like United Airlines Holdings NASDAQ: UAL and Southwest Airlines Co. NYSE: LUV set to report earnings in the weeks following Delta's announcement, the market may soon be able to make a better prediction as to whether this is a Delta-specific problem or one that may plague the whole industry. Unfortunately, signs may be pointing toward the latter.
Delta's Earnings Fallout Comes With Some Very Bright PointsHigh fuel costs are punishing Delta's margins, already resulting in flat EBIT and earnings per share (EPS) in the latest quarter, even as management has significantly revised full-year guidance downward. Fuel costs are particularly difficult for airlines because they are not able to hedge them indefinitely. As the Iran war continues and crude prices remain significantly elevated, there are few signs that prices will come down in the near term.
On the other hand, the company demonstrated some important highlights in its latest quarter. Most importantly, demand remains very robust, as evidenced by record Q3 revenue and GAAP revenue growth of 21% year over year (YOY). This was bolstered by strong passenger mix and robust improvement across regions, a sign that Delta's business is healthy and that customers around the world are choosing to prioritize air travel even as they tighten their belts elsewhere.
Predictably, several Wall Street firms lowered their price targets for DAL shares after the latest report, but nearly all of them maintained Buy ratings on the stock. Even after reducing the consensus price target, a collective prediction of $100.01 per share suggests the firm may have 24% in possible upside ahead; it may just be a matter of waiting out the persistent fuel cost issue.
United's Earnings May Be a Test of Its Different Route PrioritiesUnited is one of the most directly comparable rivals to Delta and, with earnings coming up, a key data point for investors looking to assess whether the fuel crisis will hit all corners of the industry equally.
United Airlines Today
UAL
United Airlines
$102.42 -2.02 (-1.94%)
As of 09:51 AM Eastern
This is a fair market value price provided by Massive. Learn more.
$84.64▼
$138.779.61
$156.38
The company's unhedged fuel exposure could put it in a difficult spot as well. An important distinction for United, however, is its trans-Pacific route network, the strength of which distinguishes it from Delta and other competitors and which provides some additional revenue diversification. United's report may help investors assess whether an airline's focus on international or domestic capacity has bearing on how it navigates a fuel crisis.
Wall Street analysts have not been waiting until United issues its next earnings report, however, to adjust their price targets downward. In the last month alone, six analysts have revised their price estimates in this direction, a trend that could continue if United is not able to distinguish itself from Delta when it comes to the impact of high fuel costs. That said, analysts continue to view shares as a Buy in most cases, and UAL still enjoys about 48% in upside potential, another sign that a strong recovery could be possible when the fuel crisis is resolved.
Southwest's Business Model May Leave It More VulnerableDespite some international presence, Southwest is primarily a domestic carrier, which potentially puts it at a disadvantage compared to United and Delta, both of which can lean on lucrative long-haul international routes.
Southwest Airlines Today
LUV
Southwest Airlines
$40.48 -0.29 (-0.70%)
As of 09:51 AM Eastern
This is a fair market value price provided by Massive. Learn more.
$29.26▼
$55.111.78%
24.90
$47.46
The company also does not have an extensive hedging program for fuel costs, leaving it more susceptible to crude oil price spikes.
Further, Southwest's branding as a low-cost carrier may force it to further adjust its schedules in order to maintain lower price points for customers in the current environment.
The result of all of this is that analysts tend to be more skeptical of LUV stock, with a majority calling shares either a Hold or even a Sell, despite about 15% in upside potential.
Still, Southwest also has earnings upcoming and could win a positive market response if it is able to reassure investors that it can navigate the fuel issue more adeptly than its rivals.
Should You Invest $1,000 in Delta Air Lines Right Now?Before you consider Delta Air Lines, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Delta Air Lines wasn't on the list.
While Delta Air Lines currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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Delta has pushed back the launch of the first-ever direct US-to-Saudi Arabia flight. Massimo Insabato/Archivio Massimo Insabato/Mondadori Portfolio via Getty Images Delta Air Lines is delaying the launch of its new route to Saudi Arabia's capital, Riyadh, following recent Houthi missile attacks on the city's airport.
The route, which would have started in Atlanta, was scheduled to begin on October 23 with a week of daily service before moving to three times a week. It was set to be the first non-stop flight between the US and Saudi Arabia.
"Saudi Arabia remains an important market for Delta, and we are committed to serving the Kingdom for the long-term," the airline said.
Delta said the flights will now start in March 2027, though it did not specify an exact start date.
"The safety and security of our customers and employees always come first and continue to guide our operational decisions," Delta said in its announcement. "We remain in close contact with relevant government and aviation partners, including Saudia and Riyadh Air, as we monitor the situation."
'Technical issue' halts American Airlines flights for an hour on Christmas Eve
Riyadh's King Khalid International Airport has suffered a number of attacks in recent weeks.
On Saturday, hundreds were wounded, and 13 people were killed by a missile strike. The following day, another strike killed one person and injured about a dozen.
The Houthis, who are backed by Iran, have been attacking Saudi Arabia after gaining control of a key strait in the Red Sea.
Delta's decision came after the Federal Aviation Administration issued a warning for US airlines on Sunday.
"Threats could pose a potential risk to aircraft at all altitudes, including overflight, the arrival, and departure phases of flight," the FAA said.
As recently as last Thursday, Delta CEO Ed Bastian said that the airline was weighing whether to postpone the route. "Safety is going to make the call," he told CNBC.
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Pete Syme You're currently following this author! Click to unsubscribe from email alerts.
Pete Syme is an aviation reporter for Business Insider, based in London.He writes about all things related to the industry, from aviation safety and CEO interviews to route reveals and airplane tours. Pete also uses data for industry analyses and to visualize breaking news events.Before joining Business Insider in 2022, he graduated with an MA in Newspaper Journalism from City, University of London, and a BA in English from the University of Exeter.
Delta Air Lines Inc. (NYSE:DAL) has a potential recovery story, with Susquehanna seeing its stock reaching $95. But rising fuel costs have forced the airline to slash its earnings outlook, creating a gap between strong travel demand and the profits investors ultimately care about. Three risks could determine whether that upside materializes.
Wall Street Sees 18% UpsideSusquehanna lowered its price target on Delta to $95 from $100 while maintaining a Positive rating, according to The Fly. Against a share price of $80.77, the revised target implies roughly 18% upside.
Delta reported third-quarter operating revenue of $17.6 billion, up 16% year over year, supported by premium travel and resilient demand. The airline also expects fourth-quarter revenue growth of approximately 20%, according to its earnings announcement.
However, stronger sales have not prevented a deterioration in its profit outlook.
Risk 1: Fuel Costs Keep ClimbingDelta cut its 2026 adjusted earnings forecast to $5.10–$5.60 per share from $6.50–$7.50 previously. The company expects its annual fuel bill to rise by approximately $6 billion compared with 2025.
Delta’s projected fourth-quarter all-in fuel price of around $4.25 per gallon would also exceed the $3.61 reported for the third quarter. Higher fares can offset some of that pressure, but customers may resist further increases if ticket prices rise too far.
For investors, the key question is whether Delta can pass on enough of the fuel shock without weakening demand.
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Risk 2: Revenue Growth May Not Protect MarginsDelta’s premium and corporate travel businesses remain important strengths, but revenue growth alone does not guarantee stronger profitability. Higher operating expenses can absorb additional ticket sales, leaving earnings below expectations even when planes are full.
If fuel stays expensive or competing airlines add capacity aggressively, Delta could struggle to sustain fare increases. Investors need evidence that premium demand and pricing power can translate into recovering margins, rather than merely offsetting higher costs.
Risk 3: Geopolitics Disrupts ExpansionDelta has postponed its planned nonstop Atlanta-to-Riyadh service until March 2027 following regional security concerns. The route would have marked its first direct passenger service to Saudi Arabia, opening a potential growth avenue.
The delay does not eliminate that opportunity, but it illustrates how geopolitical instability can disrupt expansion plans and complicate international operations.
Investment takeaway: Susquehanna’s $95 target offers a potential recovery path, not a guarantee. Delta needs to contain fuel expenses, protect margins and execute its growth plans before investors can confidently price in that upside.
Key Takeaways Delta cut its 2026 earnings forecast as fuel costs surged.Airline earnings face pressure despite resilient travel demand.Capacity discipline could support airline ETFs like JETS.
Delta Air Lines (DAL - Free Report) cut its 2026 adjusted earnings forecast by nearly 25% as surging jet fuel prices, driven by the Iran war, pushed its expected annual fuel bill up by $6 billion from 2025. Despite strong travel demand and higher ticket prices, rising costs are squeezing airline profitability.
Inside Earnings ResultDelta Air Lines reported somewhat disappointing third-quarter results on Friday, missing both earnings and revenue expectations as surging fuel costs pressured profitability despite record revenue and resilient travel demand.
Delta posted adjusted Q3 earnings of $1.72 per share, missing the Zacks EPS Consensus of $1.80 by 4%. Earnings were essentially flat compared with $1.71 per share in the year-ago quarter.
Adjusted revenue increased 16% year over year to a record $17.59 billion but fell short of expectations of $17.71 billion. Premium and loyalty revenue each climbed 18%, reflecting continued strength among higher-spending travelers.
However, adjusted fuel expenses surged 62% year over year to $4.14 billion, significantly limiting profitability despite stronger ticket pricing and disciplined capacity management.
Image Source: Zacks Investment Research
Capacity Discipline Becomes CrucialDelta warned that U.S. airlines may need to restrain flight growth further in 2027 to protect margins. While limited seat growth has helped carriers raise fares, excessive capacity expansion could intensify competition and weaken pricing power.
What’s Ahead of Other Industry Players in Q3 Earnings Season?Let's examine the earnings outlook for other major airlines, whose results and guidance could influence the sector's performance.
Earnings WhispersOur proven model does not conclusively predict an earnings beat for PepsiCo this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Inside Our Surprise PredictionUnited Airlines (UAL - Free Report) , and Alaska Air Group (ALK - Free Report) will report on Oct. 20 while American Airlines (AAL - Free Report) , Southwest Airlines (LUV - Free Report) , and JetBlue Airways (JBLU - Free Report) will report on Oct. 22, Oct. 21, Oct. 27, respectively.
UAL has a Zacks Rank #5 and an Earnings ESP of +0.17%.
ALK has a Zacks Rank #5 and an Earnings ESP of +4.35%.
AAL has a Zacks Rank #3 and an Earnings ESP of -2.66%.
LUV has a Zacks Rank #3 and an Earnings ESP of -4.13%.
JBLU has a Zacks Rank #4 and an Earnings ESP of -4.31%.
Inside Earnings & Revenue Growth ExpectationsBelow are the Zacks Consensus Estimates for third-quarter earnings per share (EPS) and revenues for the five major airlines, as of Oct. 8, 2026.
UAL: EPS of $5.94 (Down 3.6% year over year) on revenues of $17.85 billion (up 17.25% year over year)
ALK: EPS of $0.35 (Down 67% year over year) on revenues of $4.31 billion (up 14.52% year over year)
AAL: Loss per share of $0.28 (loss widened by 64.7% year over year) on revenues of $16.19 billion (up 18.27% year over year)
LUV: EPS of $0.61 (up 454.6% year over year) on revenues of $8.26 billion (up 18.8% year over year)
JBLU: Loss per share of $0.52 (loss widened by 30% year over year) on revenues of $2.82 billion (up 21.4% year over year)
What It Means for Airline ETFPersistent fuel-cost pressures and uncertain profit margins could weigh on pure-play airlines ETF the U.S. Global Jets ETF (JETS - Free Report) , which provides exposure to major airlines. The sector's outlook will depend on fuel prices, the sustainability of airfares and capacity discipline.
Pure-play airlines ETF U.S. Global Jets ETF (JETS - Free Report) is down 3% so far this year but has gained 6.4% over the past six months. Over the past one month, the fund is off 2.6% (as of Oct. 8, 2026).
Ultimately, the outlook for airline ETFs will depend on earnings commentary and forward guidance from industry players. If more airlines announce capacity cuts to protect profitability, the resulting improvement in supply-demand dynamics could support airline stocks and ETF such as JETS.
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
Key Takeaways Delta reported 16% revenue growth in Q3 and expects approximately 20% growth in Q4 on 3% higher capacity.DAL expects $4.5 billion in pretax profits despite a $6 billion rise in annual fuel expenses.Delta's premium and loyalty revenues rose 18% each, while nonfuel unit costs increased 7.3% year over year. Delta Air Lines, Inc. (DAL - Free Report) emphasized pricing strength, resilient travel demand and disciplined capacity management during its third-quarter 2026 earnings call. Management maintained that stronger revenues and diversified income streams are helping offset sharply elevated fuel expenses.
Executives also addressed persistent nonfuel cost pressures, operational investments and the sustainability of higher fares. Their outlook points to continued revenue momentum, although fuel volatility remains a major consideration for 2027 profitability.
Delta Sees Revenue Momentum Continuing Into Q4Chief commercial officer Joe Esposito said broad-based demand and stronger yields supported third-quarter revenue growth of 16% on essentially flat capacity.
Adjusted revenues reached $17.59 billion, below the Zacks Consensus Estimate of $17.74 billion. Adjusted earnings of $1.72 per share missed the consensus estimate of $1.8.
Esposito expects fourth-quarter revenue growth of approximately 20% on 3% higher capacity. During the analyst discussion, he noted that more than 60% of fourth-quarter bookings were already secured, with strong early booking trends extending into 2027.
DAL Faces Elevated Fuel Costs Despite Strong PricingChief executive officer Ed Bastian emphasized that Delta's diversified business model has strengthened its ability to withstand substantial fuel inflation.
Management expects approximately $4.5 billion in full-year pretax profits despite a projected $6 billion increase in annual fuel expenses. Fourth-quarter earnings are projected between $1.15 and $1.65 per share, with operating margins of 7% to 9%.
Chief financial officer Erik Snell indicated that fourth-quarter fuel costs could reach $4.25 per gallon, including a refinery benefit of approximately 40 cents. Management expects full-year earnings between $5.1 and $5.6 per share.
Delta's Nonfuel Costs Remain Under ScrutinySnell acknowledged that nonfuel unit costs increased 7.3% year over year, reflecting higher crew expenses, revenue-related costs and operational disruptions.
Responding to a Bank of America analyst's concerns about cost inflation, Snell explained that operational investments and restrained capacity growth were deliberate decisions intended to support reliability and profitability.
Management expects fourth-quarter nonfuel unit cost growth to improve sequentially by 1 to 2 percentage points. Snell reiterated expectations for low-single-digit growth in 2027 as operational efficiencies improve and earlier investments enter the comparison base.
DAL's Premium and Loyalty Businesses Support GrowthEsposito highlighted continued strength in premium travel, with premium revenues increasing 18% year over year. Diversified revenue streams represented 61% of total revenues.
Loyalty revenues also grew 18%, supported by stronger cardholder engagement and spending. American Express remuneration increased 15%, positioning full-year payments to exceed $9 billion.
During questioning from JPMorgan, Bastian expressed reluctance to partially monetize SkyMiles. He emphasized maintaining direct customer relationships and expanding loyalty through partnerships, including Hyatt, rather than introducing outside financial investors.
Delta Maintains Discipline on Capacity ExpansionBastian reiterated that capacity decisions will prioritize margins rather than market-share growth, particularly while fuel prices remain elevated.
In response to a Citigroup analyst, he indicated that 2027 capacity plans would depend on fuel prices, economic conditions and demand. International markets could account for a greater proportion of expansion.
Esposito also described improving domestic competitive conditions as airlines reduce unprofitable capacity. He noted that domestic unit revenues increased 16%, while Main Cabin unit revenues continued their sequential improvement.
DAL Targets Cash Generation and Debt ReductionSnell emphasized balance-sheet strengthening alongside continued investment in the airline's operations and customer experience.
Delta generated $463 million in third-quarter free cash flow and expects approximately $2.5 billion for 2026. Management plans to repay more than $2 billion in debt this year.
The company targets year-end gross leverage of approximately 2.2 times. Its longer-term framework includes mid-teens margins and returns, supported by fleet modernization, operational improvements and higher-value revenue streams.
Delta Focuses on Sustainable ProfitabilityManagement's overarching message centered on preserving pricing gains while improving efficiency and operational reliability.
Bastian maintained that higher fares could remain sustainable after fuel prices moderate. However, he acknowledged that the timing and extent of fuel-price normalization remain critical to future margin expansion.
What DAL's Zacks Rank and Style Scores IndicateDAL currently carries a Zacks Rank #5 (Strong Sell), indicating an unfavorable earnings-estimate revision outlook. Its Value and Growth Score of B each reflects relatively attractive characteristics in those categories. However, the Momentum Score of F indicates weak price momentum, while the VGM Score of C reflects a mixed overall style profile. Favorable individual scores do not override the caution associated with the current Zacks Rank.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Rank can change as analysts revise earnings estimates following the latest results, making subsequent estimate revisions important to monitor.
The Federal Aviation Administration told U.S. airlines to exercise caution when flying in or around Saudi Arabia after deadly attacks claimed by Yemen's Iran-backed Houthis, which have shut down the airport in the Saudi capital.
King Khalid International Airport in Riyadh, Saudi Arabia, remains closed as of Monday after attacks that started last week. The attacks escalated Saturday, when a projectile struck a passenger terminal at the airport, officials said, killing at least 12 people and wounding more than 300.
Airlines suspended flights to the airport, some for the rest of the week.
The U.S., Australia and other countries advised citizens against travel to the region.
The FAA late Sunday said that pilots should "exercise caution" in or around Saudi Arabia "due to safety-of-flight risks associated with ongoing military activities" and navigation systems. It said the threats could be a potential risk "to aircraft at all altitudes." The FAA's warning is in effect until Dec. 10.
Most U.S. airlines don't fly to Saudi Arabia.
Delta Air Lines is scheduled to launch its first nonstop flight from Atlanta to Riyadh on Oct. 23. CEO Ed Bastian said in an interview Thursday, before the Saturday missile attack, that "safety is going to make the call" on whether to operate the flight as planned. As of Sunday night, Delta hadn't changed its plans, a spokeswoman said.
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 – Get Free Report) was the recipient of unusually large options trading on Friday. Stock investors purchased 39,720 call options on the stock. This represents an increase of 34% compared to the typical volume of 29,613 call options.
Delta Air Lines Stock Performance DAL stock opened at $82.32 on Friday. The company has a quick ratio of 0.35, a current ratio of 0.42 and a debt-to-equity ratio of 0.48. The company has a market capitalization of $54.13 billion, a price-to-earnings ratio of 16.43, a P/E/G ratio of 1.40 and a beta of 1.34. Delta Air Lines has a 12 month low of $55.03 and a 12 month high of $95.68. The firm has a 50 day moving average of $83.51 and a two-hundred day moving average of $79.84.
Delta Air Lines (NYSE:DAL – Get Free Report) last posted its earnings results on Friday, October 9th. The transportation company reported $1.72 earnings per share for the quarter, missing the consensus estimate of $1.77 by ($0.05). Delta Air Lines had a net margin of 5.79% and a return on equity of 17.52%. The company had revenue of $17.59 billion for the quarter, compared to the consensus estimate of $17.65 billion. During the same quarter last year, the business earned $1.71 earnings per share. Delta Air Lines’s quarterly revenue was up 21.1% on a year-over-year basis. Delta Air Lines has set its Q4 2026 guidance at 1.150-1.650 EPS and its FY 2026 guidance at 5.100-5.600 EPS. As a group, equities analysts anticipate that Delta Air Lines will post 5.23 EPS for the current fiscal year.
Delta Air Lines Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, November 5th. Investors of record on Thursday, October 15th will be issued a dividend of $0.2150 per share. This represents a $0.86 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, October 15th. Delta Air Lines’s dividend payout ratio (DPR) is currently 14.26%. Analysts Set New Price Targets DAL has been the topic of several research analyst reports. BMO Capital Markets reduced their price objective on Delta Air Lines from $105.00 to $100.00 and set an “outperform” rating on the stock in a research note on Monday, September 28th. Sanford C. Bernstein cut their price target on Delta Air Lines from $106.00 to $100.00 and set an “outperform” rating on the stock in a research note on Wednesday. Morgan Stanley increased their price objective on shares of Delta Air Lines from $115.00 to $125.00 and gave the company an “overweight” rating in a research note on Friday, July 10th. TD Cowen decreased their target price on Delta Air Lines from $105.00 to $101.00 and set a “buy” rating for the company in a research report on Friday, October 2nd. Finally, The Goldman Sachs Group reaffirmed a “buy” rating on shares of Delta Air Lines in a report on Monday, August 3rd. Twenty-two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, Delta Air Lines presently has an average rating of “Moderate Buy” and a consensus target price of $100.24.
Read Our Latest Analysis on Delta Air Lines
Delta Air Lines News Summary Here are the key news stories impacting Delta Air Lines this week:
Positive Sentiment: Delta reported record September-quarter revenue of approximately $17.6 billion, up 21.1% year over year, reflecting resilient passenger demand, healthy yields and strength in its premium business. Management said bookings remain strong and expects revenue to grow about 20% in the December quarter. Delta Air Lines Announces September Quarter 2026 Financial Results Positive Sentiment: Management expects higher fares to help offset elevated fuel expenses and projects approximately $2.5 billion of 2026 free cash flow, while targeting more than $2 billion of debt repayment. These plans support Delta’s balance-sheet and shareholder-return narrative. Delta Air Lines cuts 2026 forecast on fuel surge, but CEO says demand is still strong Positive Sentiment: Analyst sentiment remains broadly favorable, including a Buy rating from Morgan Stanley. Call-option activity was also above normal, suggesting some traders continue to anticipate a recovery despite the guidance reduction. Neutral Sentiment: Delta CEO Ed Bastian said the company can absorb roughly $6 billion in additional fuel costs and sees no meaningful deterioration in travel demand. However, the timing and persistence of fuel-price relief remain uncertain. Delta Air Lines cuts profit forecast as fuel costs outpace fare gains Negative Sentiment: Adjusted third-quarter EPS was $1.72, below the $1.77 consensus, while revenue also narrowly missed estimates. The earnings miss was Delta’s first in roughly two years and indicates that rising costs are already pressuring margins. Negative Sentiment: Jet-fuel expense increased more than 60% year over year, overwhelming revenue gains. Delta cut 2026 adjusted EPS guidance to $5.10–$5.60 from $6.50–$7.50; fourth-quarter EPS guidance of $1.15–$1.65 and revenue guidance of $17.5 billion were also below consensus. DAL Q3 Earnings Miss Estimates as Higher Fuel Costs Hurt Margins Insider Transactions at Delta Air Lines In related news, Director Michael P. Huerta sold 3,100 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $94.11, for a total transaction of $291,741.00. Following the transaction, the director owned 32,525 shares of the company’s stock, valued at approximately $3,060,927.75. This represents a 8.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Steven M. Sear sold 40,460 shares of the stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $93.55, for a total value of $3,785,033.00. Following the transaction, the executive vice president directly owned 104,404 shares in the company, valued at approximately $9,766,994.20. This represents a 27.93% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 356,726 shares of company stock worth $33,081,037 in the last quarter. Insiders own 0.80% of the company’s stock.
Institutional Inflows and Outflows Several institutional investors and hedge funds have recently added to or reduced their stakes in DAL. Cerity Partners LLC lifted its holdings in shares of Delta Air Lines by 13.6% during the 4th quarter. Cerity Partners LLC now owns 425,654 shares of the transportation company’s stock valued at $29,540,000 after purchasing an additional 51,041 shares in the last quarter. Bessemer Group Inc. increased its stake in Delta Air Lines by 105.3% during the 1st quarter. Bessemer Group Inc. now owns 39,018 shares of the transportation company’s stock worth $2,595,000 after purchasing an additional 20,012 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Delta Air Lines during the 2nd quarter worth approximately $28,829,000. Baird Financial Group Inc. raised its holdings in Delta Air Lines by 45.1% during the 2nd quarter. Baird Financial Group Inc. now owns 449,986 shares of the transportation company’s stock worth $42,146,000 after buying an additional 139,799 shares during the period. Finally, NewEdge Advisors LLC raised its holdings in Delta Air Lines by 102.3% during the 1st quarter. NewEdge Advisors LLC now owns 105,966 shares of the transportation company’s stock worth $7,045,000 after buying an additional 53,581 shares during the period. Institutional investors and hedge funds own 69.93% of the company’s stock.
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Delta Air Lines, Inc is a major U.S. airline that provides scheduled passenger and air freight transportation. The company serves destinations throughout the United States and connects customers to international markets across Europe, Asia, Latin America, Canada, Africa and the Caribbean through its own operations and regional airline partners.
Delta offers multiple classes of passenger service, including premium cabins and its main cabin, along with travel-related products such as vacation packages and loyalty benefits through the SkyMiles program.
Further Reading Five stocks we like better than Delta Air Lines 3 Unique ETFs With Strong Momentum for the End of the Year 3 Beaten-Down Biotech Stocks With Triple-Digit Upside and Big Catalysts Ahead Schneider Just Paid Up for PTC—Is the SaaSpocalypse Overdone? Delta Air Lines Faces a Fuel Crisis—But There’s a Silver Lining Receive News & Ratings for Delta Air Lines Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Delta Air Lines and related companies with MarketBeat.com's FREE daily email newsletter.
Delta Air Lines NYSE: DAL is set up for a Q4 pullback as rising fuel costs cut into its earnings. The pullback could reach as low as $70 before it bottoms, but once it does, the recovery may be rapid.
Delta Air Lines Today
DAL
Delta Air Lines
$82.32 +0.18 (+0.22%)
As of 10/9/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
$55.03▼
$95.681.04%
13.65
$100.24
That’s because results, impaired as they are by fuel costs, remain robust. The company produced record Q3 revenue, underpinned by broad-based demand, pointing to a strong Q4 and a high probability that the trend will continue into the next year.
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Within this, oil prices are the wild card, potentially high indefinitely, with an equal risk of rapid implosion. The Iran conflict is weighing on oil prices today, but is not expected to do so much longer. Backwardation indicators suggest oil will drop back into the $80 region over the coming months, potentially lower, provided strong catalysts emerge.
Global oil market shifts, improving Western production, and alternative fuels (such as natural gas) are setting the stage for a possible oil glut in 2027.
The takeaway for investors is that Delta’s earnings miss was self-inflicted: the company is absorbing fuel cost increases to sustain and grow market share. However, earnings are sufficient to support strategic improvements while paying dividends.
Delta Air Lines Mixed Results Overshadow Record QuarterDelta Air Lines had a robust Q3 with GAAP revenue growing by 21% year-over-year (YOY) to over $20 billion. Adjusted revenue increased 16% to $17.6 billion, slightly missing consensus estimates. Broad-based demand and double-digit growth across regions drove strength. Domestic revenue rose 16%, while international revenue increased 12% YOY.
Within the international operations, Latin America was strongest, up 22%, followed by a 13% increase in trans-Pacific and an 11% increase in trans-Atlantic flights. Other signs of strength included the passenger mix. Premium increased by 18%, loyalty by 18%, and corporate by double digits, compounded by a 29% increase in cargo and strength in the maintenance division.
Margin news is not as bad as it sounds, although margins did compress significantly. Key details include flat EBIT and operating income, despite the 21% increase in revenue. The important caveat is that margin compression was due to higher fuel costs, not operational failures, and flat results are still good for cash flow, free cash flow, and balance sheet health. Free cash flow is $1.9 billion year-to-date, enough to keep the company on track to reduce debt by $2 billion annually while paying its dividend.
Debt reduction and dividends are central to Delta’s stock price outlook. Debt grew and the dividend shrank because of the COVID-19 pandemic, but both have since recovered. The narrative today is that Delta regained investment-grade debt ratings, is strengthening its position, and is trending toward aggressive increases. Although reinstated, the payout remains a fraction of what it once was, despite the company’s massive growth. The likely outcome is that DAL sustains annual increases, potentially accelerating them over time as its debt falls and free cash flow improves. Until then, the payment is reliably safe at less than 15% of the earnings forecast.
Analysts Trim Targets: Limit Upside in Q4Analysts weren't happy with the report, focusing on margin contraction and overlooking market-share strength. The net reaction was a wave of price target reductions, but don’t read too much into it—all aligned with the consensus, which forecasts approximately 20% upside.
98th Percentile
Moderate Buy
21.8% Upside
Healthy
Moderate
0.05 Selling Shares
39.36%
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The bad news is that the reductions are likely to undercut market activity and keep this stock under pressure in the near term. However, the consensus of 25 analysts remains Buy, with a 92% Buy-side bias in the data. Analysts are cautious yet still reflect a bullish position, as seen in the institutional trends. Institutions own nearly 70% of DAL stock and have bought on balance every quarter this year.
The market gets it wrong by treating Delta as a run-of-the-mill airline, low-margin and exposed to oil price risks. It is a resilient consumer brand, ranking first in numerous surveys, driving revenue through seat miles, but compounding it and margins with diversified revenue streams.
Premium, add-ons, and loyalty drive revenue and keep consumers coming back. Within this, Delta’s unique position as the only airline with its own refinery helps alleviate some of the fuel crisis. In this scenario, fuel price spikes hurt the industry but enable Delta to gain share and set up for accelerated margin recoveries as oil prices decline.
Delta’s biggest risk is that oil prices remain elevated indefinitely or move to fresh highs, keeping margins under pressure throughout 2027. In that scenario, DAL's share price may stay under pressure through the year’s end or until oil market relief becomes a reality.
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CNBC’s Jim Cramer said Delta's disappointing headline numbers overshadowed signs of strength, as the carrier managed to keep adjusted pretax profit roughly flat despite a sharp increase in fuel costs.He said strong demand for premium seating and growth in Delta’s loyalty business support his thesis that the airline is becoming more resilient.watch now
Delta Air Lines missed Wall Street's earnings expectations and slashed its full-year profit forecast Friday, but CNBC's Jim Cramer said the results offered encouraging signs that the airline is becoming more resilient.
"Delta's putting up incredible numbers, to the point where they're able to offset a huge chunk of the increase in fuel costs," the "Mad Money" host said. "Once the price of crude comes back down, I think they'll make out like bandits."
The carrier reported adjusted earnings of $1.72 per share, below the $1.75 expected by analysts, and lowered its full-year profit guidance as jet fuel costs surged 60% from a year earlier due to the Iran war. But Cramer focused on what got lost in the headline numbers: Delta managed to keep adjusted pretax profit roughly flat despite the sharp increase in expenses.
"That's incredible," Cramer said. "Delta's been able to generate enough additional revenue to offset most of the damage."
A major bright spot was premium travel. Revenue from premium seating jumped 18%, surpassing revenue from main cabin tickets. Delta also filled a greater share of its premium seats despite charging higher fares.
"Delta added premium capacity, filled more of it and charged more, too," Cramer said. "This is the best kind of demand and is proving to be pretty sticky."
The airline's growing loyalty business is another source of strength. Revenue from its American Express partnership rose 15%, helping Delta generate more revenue beyond traditional ticket sales.
For Cramer, those trends reinforce his thesis that Delta is evolving beyond a traditionally cyclical airline into a more durable business built around loyal customers, premium offerings and diversified revenue streams.
He also sees an eventual decline in fuel prices as a major catalyst. Delta has been raising fares to offset higher costs, with customers showing limited resistance. "Once the war with Iran ends, or at least fizzles to the point that oil can come down, this airline will be printing money," Cramer said.
Still, Cramer isn't rushing to buy airline stocks while fuel prices remain elevated. But he remains optimistic about Delta's longer-term prospects.
Delta Air Lines, Inc. ( DAL ) Q3 2026 Earnings Call October 9, 2026 10:00 AM EDT Company Participants Julie Stewart - Vice President of Investor Relations & Corporate Development Ed Bastian - CEO & Director Joe Esposito - Executive VP & Chief Commercial Officer Daniel Janki - Executive VP & COO Erik Snell - Executive VP & CFO Conference Call Participants Andrew Didora - BofA Securities, Research Division Savanthi Syth - Raymond James & Associates, Inc., Research Division Michael Linenberg - Deutsche Bank AG, Research Division Conor Cunningham - Melius Research LLC Thomas Fitzgerald - TD Cowen, Research Division Duane Pfennigwerth - Evercore ISI Institutional Equities, Research Division John Godyn - Citigroup Inc., Research Division Christian Wetherbee - Wells Fargo Securities, LLC, Research Division Michael Goldie - BMO Capital Markets Equity Research Jamie Baker - JPMorgan Chase & Co, Research Division Atul Maheswari - UBS Investment Bank, Research Division Brandon Oglenski - Barclays Bank PLC, Research Division Catherine O'Brien - Goldman Sachs Group, Inc., Research Division David Vernon - Bernstein Institutional Services LLC, Research Division Daniel McKenzie - Seaport Research Partners Presentation Operator Good morning, everyone, and welcome to the Delta Air Lines September Quarter 2026 Financial Results Conference Call. My name is Matthew, and I will be your coordinator.
Delta Air Lines Faces a Fuel Crisis—But There's a Silver LiningDelta Air Lines NYSE: DAL reported September-quarter revenue growth of 16% and pre-tax profit of $1.5 billion, matching the prior-year period despite absorbing $1.6 billion in higher fuel costs, executives said on the company’s 2026 earnings call.
The airline earned $1.72 per share and posted a 9.4% operating margin during the quarter. Chief Executive Officer Ed Bastian said Delta generated $1.9 billion in free cash flow year to date and delivered return on invested capital of 11%, above its cost of capital.
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2 "Cheap for a Reason" Airline Stocks That May Be Worth the Risk“Our results demonstrate the structural durability that we have built,” Bastian said, pointing to disciplined capital allocation, a diversified revenue base and investments in operations, customer experience and loyalty.
Revenue Growth Led by Premium, Loyalty and Corporate Demand Chief Commercial Officer Joe Esposito said quarterly revenue reached $17.6 billion, up about 16% from a year earlier on flat capacity. Total unit revenue increased 15.4%, accelerating by three percentage points from the June quarter.
Delta vs. United: Which Airline Is Better Built for Higher Fuel Costs?Domestic unit revenue rose 16%, supported by higher yields and load factors that were one point above last year. International unit revenue increased 12%, including 22% growth in Latin America. Transatlantic unit revenue growth accelerated sequentially to 11%.
Delta said corporate sales increased by double digits across sectors, cabins, hubs and entities. The week after Labor Day was the carrier’s highest corporate-sales week on record, according to Esposito.
Diversified revenue streams accounted for 61% of total revenue, with premium and loyalty revenue each growing nearly 20%. Cargo and maintenance, repair and overhaul, or MRO, revenue each rose nearly 30%.
Premium capacity increased 6% to 7%, while premium load factors rose nearly two points. SkyMiles membership grew faster than capacity, the company said. Card acquisitions and spending both grew by double digits. Delta expects a fifth consecutive year of 1 million new American Express card acquisitions. Bastian said the Delta American Express partnership is expected to produce more than $9 billion of remuneration this year, on a path toward $10 billion. The company also highlighted a recently announced strategic relationship with Hyatt, which is expected to launch later this year.
Fourth-Quarter Outlook Calls for Continued Momentum Delta expects approximately 20% year-over-year revenue growth in the December quarter on roughly 3% capacity growth. Esposito said forward cash sales grew nearly 20% during the September quarter, the highest quarterly growth rate since 2022, and that the carrier was already more than 60% booked for the fourth quarter.
The company said seat growth is expected to remain below 2% in the fourth quarter, including a year-over-year reduction in Main Cabin seats. Delta expects that capacity positioning to support another sequential improvement in unit-revenue growth.
Management also said early first-quarter booking indicators were similar to the fourth-quarter trend. Esposito said the company has visibility into the next 90 to 120 days and sees continued strength in corporate travel and broader demand.
For the full year, Delta forecast pre-tax profit of roughly $4.5 billion, earnings of $5.10 to $5.60 per share and about $2.5 billion of free cash flow. The company expects to use more than $2 billion for debt reduction during the year.
Bastian said the outlook would put Delta’s full-year profitability close to the prior year despite an expected 60% increase, or roughly $6 billion, in its fuel bill.
Fuel, Costs and Balance Sheet Remain Key Focus Areas Chief Financial Officer Erik Snell said Delta’s fuel price averaged $3.61 per gallon in the September quarter, including a $0.13-per-gallon refinery benefit. The company expects fourth-quarter all-in fuel prices of $4.25 per gallon, based on the forward curve as of Oct. 2, including an estimated refinery benefit of about $0.40 per gallon.
Non-fuel unit costs rose 7.3% year over year on flat capacity. Snell attributed the increase primarily to higher crew and revenue-related costs, growth that was below Delta’s original capacity plan, and the effect of weather and air-traffic-control disruptions.
For the December quarter, Delta expects non-fuel unit-cost growth to improve sequentially by one to two points. Snell said the company remains on track for low-single-digit unit-cost growth next year as capacity normalizes, operational improvements continue and higher costs enter the comparison base.
Delta ended the quarter with $13 billion of adjusted net debt and expects to finish the year with gross leverage of 2.2 times. Snell said the company had a $3 billion pension surplus and retained investment-grade ratings from all three major credit rating agencies, including a recent Fitch upgrade to BBB.
Operational Investments and Network Expansion Chief Operating Officer Dan Janki said Delta widened its industry lead in on-time performance during the summer and delivered record baggage results despite more than twice the historical average number of disruption days from weather and air-traffic-control delays.
Delta expects further improvement in its recovery performance through the fourth quarter and into 2027. Janki said investments in crew resiliency, data, technology and operational processes are intended to improve controllable completion factor and disruption recovery.
The company also reported $1 billion in year-to-date MRO revenue, up nearly 60% from a year earlier. Janki said Delta sees an opportunity to more than double MRO revenue over the next several years while expanding margins.
On the commercial side, Delta announced service additions to the Philippines and expanded flights to Tokyo, Paris, Athens and Venice from U.S. gateways. The company is also growing its international presence from Los Angeles, including service to the South Pacific, Hong Kong and Manila.
Bastian said Delta intends to remain disciplined on capacity, particularly while fuel prices remain elevated. He said the carrier expects more of its future growth to come from international markets than domestic routes and will manage capacity with an emphasis on margins, returns and cash generation.
About Delta Air Lines (NYSE:DAL)Delta Air Lines, Inc is a major U.S. airline that provides scheduled passenger and air freight transportation. The company serves destinations throughout the United States and connects customers to international markets across Europe, Asia, Latin America, Canada, Africa and the Caribbean through its own operations and regional airline partners.
Delta offers multiple classes of passenger service, including premium cabins and its main cabin, along with travel-related products such as vacation packages and loyalty benefits through the SkyMiles program.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Elon Musk said Delta's CEO, Ed Bastian, should lose his job on X. Bastian said there's no drama between the businessmen. Getty Images/Business Insider Delta CEO Ed Bastian said he doesn't have a public feud with the world's richest man.
"There's no tit-for-tat, as far as I'm concerned," he said during a Friday interview with CNBC when asked about Elon Musk's recent X offensive against the airline. "I'm a big fan of Starlink. I'm a fan of what Elon does. I drive a Tesla. OK? So there's nothing. All this nonsense about being personal is not true at all."
The apparently one-sided battle appears to have started in March, when the airline chose Amazon's Leo as its next-generation satellite internet provider over SpaceX's Starlink. At the time, Musk made one post, warning the airline "doesn't realize how much this will affect them."
Musk has stepped up his criticisms of Bastian and Delta in the past two weeks after aviation-industry X account, JonNYC, posted unconfirmed quotes from Bastian, including a comment warning that, "We do not want to be with Elon Musk. Trust me."
The same day, Musk reposted an article with the unverified comments, saying that Bastian would "lose his job over this."
Musk has posted several other times about Delta since the unconfirmed comment, making fun of the airline's internet choice: "Best way to sandbox an AI is to put it on a Delta flight," he wrote in late September.
Bastian is not the first airline CEO to draw Musk's ire. In January, Musk and Michael O'Leary, the CEO of the European budget airline Ryanair, exchanged jabs on X because the company didn't install Starlink on its planes over what it said were cost issues.
At the time, Musk polled X users, asking if he should buy RyanAir and find someone named Ryan to take over as the main boss. O'Leary, who has fashioned himself as an outspoken chief executive, launched a "great idiots" seat sale in response.
Delta's Bastian is taking a very different tack.
"I don't pay any attention," he said when asked about the feud on CNBC. "Everyone is entitled to their own opinion."
Delta didn't immediately respond to a request for comment from Business Insider.
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Ben Shimkus You're currently following this author! Click to unsubscribe from email alerts.
Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41.
Key Takeaways DAL's Q3 earnings of $1.72 per share miss estimates as fuel costs surge 62% and operating margin narrows. Delta's adjusted revenues climb 16% to $17.59 billion, driven by strong passenger demand and premium sales. DAL cuts its 2026 EPS outlook to $5.10-$5.60 from $6.50-$7.50 despite projecting 20% Q4 revenue growth. Delta Air Lines (DAL - Free Report) reported third-quarter 2026 earnings (excluding 57 cents from non-recurring items) of $1.72 per share, missing the Zacks Consensus Estimate of $1.80 by 4.44%. Earnings increased year over year despite sharply higher fuel costs and rising non-fuel expenses.
Adjusted revenues climbed 16% year over year to $17.59 billion but missed the consensus estimate of $17.74 billion by 0.9%. Broad demand strength and healthy yields lifted adjusted total revenue per available seat mile, or TRASM, 15%, while premium and diversified revenue streams continued to expand.
DAL Benefits From Broad-Based Passenger Revenue GrowthPassenger revenues increased 15% year over year to $15.53 billion. Premium-product ticket revenues climbed 18% to $6.82 billion, while main-cabin ticket revenues rose 12% to $6.80 billion. Loyalty travel awards and travel-related services revenues grew 18% and 14%, respectively.
Premium products and diversified revenue streams generated $10.78 billion, accounting for 61% of adjusted operating revenues. Management cited strong demand, healthy yield growth and disciplined capacity management as key contributors. Main-cabin unit revenues increased 17% despite a low-single-digit reduction in seats.
Delta Records Revenues Rise Across Key MarketsDomestic revenues advanced 16% year over year to $10.59 billion, supported by 16%-unit revenue growth and a 15% increase in yield. Atlantic revenues rose 11% to $3.32 billion, with unit revenues climbing 11% on relatively flat capacity.
Latin American revenues increased 14% to $867 million despite a 6% capacity reduction, reflecting 22%-unit revenue growth and a 20% improvement in yield. Pacific revenues grew 13% to $756 million as capacity expanded 8%. Corporate sales increased at a double-digit rate across all sectors, led by Banking, Technology and Energy.
Revenue passenger miles (a measure of air traffic) increased 1% to 68.13 billion. Capacity, measured in available seat miles, remained relatively flat at 79.29 billion. Consolidated passenger load factor (% of seats filled by passengers) remained unchanged at 86%.
DAL Sees Continued Strength in Diversified RevenuesCargo revenues increased 29% year over year to $301 million, supported by roughly equal contributions from volume and yield growth. Maintenance, repair and overhaul revenues climbed 28% to $296 million, bringing year-to-date revenues to $990 million.
Loyalty and related revenues rose 19% to $1.35 billion. American Express remuneration increased 15%, supported by double-digit growth in co-brand card acquisitions and the eighth consecutive quarter of double-digit cardholder spending growth. Travel products and non-air partnership revenues advanced 25%.
Delta's Higher Fuel Expenses Pressure ProfitabilityAdjusted operating expenses increased 18% year over year to $15.92 billion. Adjusted fuel expenses surged 62% to $4.14 billion as the adjusted average fuel price climbed 60% to $3.61 per gallon. Fuel consumption edged up 1% to 1.15 billion gallons.
Adjusted operating income declined 2% to $1.66 billion, while the adjusted operating margin contracted 170 basis points to 9.4%. Non-fuel costs increased 8% to $11.13 billion, and non-fuel unit costs rose 7.3% to 14.03 cents, primarily reflecting higher crew and revenue-related expenses.
DAL Generates Cash Flow and Strengthens Balance SheetAdjusted operating cash flow totaled $1.72 billion in the September quarter, declining 6% year over year. Gross capital expenditures increased 27% to $1.41 billion, leaving free cash flow of $463 million compared with $833 million a year earlier.
Adjusted net debt stood at $13.35 billion at quarter-end, down $950 million from the end of 2025 and $2.24 billion year over year. Delta ended the quarter with $3.79 billion in cash and cash equivalents and $6.9 billion in liquidity, including $3.1 billion in undrawn revolving credit capacity.
Delta Expects Strong Revenue Growth in Q4For the fourth quarter of 2026, Delta expects adjusted earnings of $1.15-$1.65 per share. The Zacks Consensus Estimate for fourth-quarter earnings per share is currently pegged at $1.60 (above the midpoint of the guided range). The company projects an adjusted operating margin of 7-9% and approximately 20% year-over-year revenue growth.
Management expects continued improvement in unit revenues across domestic and international markets. Non-fuel unit cost growth is projected to improve sequentially by 1-2 percentage points, while the all-in fuel price is estimated at approximately $4.25 per gallon.
DAL Cuts Full-Year 2026 Earnings OutlookDelta now expects full-year adjusted earnings of $5.10-$5.60 per share (earlier expectation was in the range of $6.50-$7.50). The Zacks Consensus Estimate is currently pegged at $5.34 per share. Free cash flow is expected to be approximately $2.5 billion. The company anticipates pre-tax profit of roughly $4.5 billion despite absorbing a $6 billion increase in fuel costs.
Management plans to repay more than $2 billion of debt during 2026 and expects gross leverage of approximately 2.2 times by year-end. The company also projects a double-digit return on invested capital.
DAL’s Zacks RankCurrently, DAL carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings Release of Other Transportation CompaniesJ.B. Hunt Transport Services (JBHT - Free Report) is scheduled to report third-quarter 2026 earnings on Oct. 15. The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised 10.4% downward over the past 60 days. JBHT’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.8%.
Union Pacific (UNP - Free Report) is scheduled to report third-quarter 2026 earnings on Oct. 22.
The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised 0.9% upward over the past 60 days. UNP’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark on the other occasion). The average beat is 2.8%.
Delta Air Lines Inc. reduced its full-year earnings outlook as jet fuel prices remain elevated, signaling mounting pressure on an airline industry whose smaller players are even less equipped to weather spiraling costs. Bloomberg's Chief Correspondent for Global Aviation, Sid Philip, joins to discuss.
Delta Air Lines DAL is seeing a nearly 3% decline in pre-market trading following its Q3 earnings report, which fell short of expectations. While demand and pricing remain robust, rising fuel costs and increased non-fuel unit expenses are curbing profitability.
Adjusted EPS of $1.72 was below the FactSet consensus of $1.77. Adjusted revenue rose 15.7% year-over-year to $17.585 billion, slightly missing the $17.65 billion estimate. Total GAAP revenue reached $20.186 billion, which includes $2.601 billion from third-party refinery sales. The adjusted operating margin decreased to 9.4% from 11.1%, and adjusted operating income slipped by 2%, despite strong revenue growth. However, adjusted EPS improved from $1.70 a year ago. For Q4, adjusted EPS guidance is set at $1.15-$1.65, with a midpoint of $1.40, falling short of the $1.43 consensus. Projected adjusted revenue growth of about 20% suggests revenue of roughly $17.53 billion, exceeding the $17.24 billion FactSet estimate, while capacity is expected to grow by less than 2%. Operating margin is anticipated to range from 7% to 9%. DAL now forecasts a $6 billion increase in full-year fuel costs. Q3 fuel expenses exceeded prior guidance by over $500 million, with adjusted fuel costs rising 62% year-over-year. Q4 fuel costs are expected to average $4.25 per gallon, up from $3.61 in Q3, despite a $0.40 benefit from the refinery. Cost per available seat mile (CASM) excluding fuel increased by 7.3%, driven by higher crew and revenue-related expenses, along with lower-than-expected capacity, which was impacted by summer storms. DAL anticipates this growth rate to improve by 1-2 percentage points in Q4, eventually reaching low-single digits by 2027. Free cash flow guidance for FY26 has been reduced from $3-$4 billion to approximately $2.5 billion, with gross leverage now projected at 2.2x, up from around 2x previously. Premium and diversified revenue streams accounted for 61% of adjusted revenue, bolstered by an 18% increase in premium growth, 18% in loyalty growth, a 15% rise in American Express AXP remuneration, and cargo and MRO growth of 29% and 28%, respectively.DAL's current challenge lies in converting strong pricing and demand into margin recovery amid rising fuel expenses. While the refinery provides a significant hedge, Q4 fuel projections highlight its limitations. Reduced cash flow constrains the ability for accelerated deleveraging, despite projected debt repayments exceeding $2 billion. Premium and loyalty growth offer some resilience, but achieving a stronger earnings trajectory in 2027 will depend on sustained unit revenue gains and effective management of non-fuel unit costs as capacity stabilizes.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
For the quarter ended September 2026, Delta Air Lines (DAL - Free Report) reported revenue of $17.59 billion, up 5.5% over the same period last year. EPS came in at $1.72, compared to $1.71 in the year-ago quarter.
The reported revenue represents a surprise of -0.89% over the Zacks Consensus Estimate of $17.74 billion. With the consensus EPS estimate being $1.80, the EPS surprise was -4.44%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: 86% versus the four-analyst average estimate of 86.1%.Revenue passenger miles: 68.13 billion versus the three-analyst average estimate of 68.64 billion.CASM - Ex: 14.03 cents versus the three-analyst average estimate of 13.85 cents.Average price per fuel gallon, adjusted: $3.61 versus $3.47 estimated by three analysts on average.Available seat miles: 79.29 billion versus the three-analyst average estimate of 79.74 billion.TRASM, adjusted: 22.18 cents compared to the 22.21 cents average estimate based on three analysts.Passenger revenue per available seat mile: 19.59 cents versus 19.57 cents estimated by three analysts on average.Total revenue per available seat mile: 25.46 cents versus the two-analyst average estimate of 23.35 cents.Passenger mile yield: 22.8 cents versus the two-analyst average estimate of 23.03 cents.Operating Revenues- Passenger: $15.53 billion compared to the $15.66 billion average estimate based on four analysts. The reported number represents a change of +15% year over year.Operating Revenues- Cargo: $301 million versus $257.28 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +29.2% change.Operating Revenues- Other: $4.35 billion compared to the $3.64 billion average estimate based on two analysts. The reported number represents a change of +48.3% year over year.View all Key Company Metrics for Delta here>>>
Shares of Delta have returned +5% over the past month versus the Zacks S&P 500 composite's +1.3% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.
Elon Musk mocked Delta's Wi-Fi to 91,000 cheering fans, but the airline's next earnings report quietly revealed a crisis that had nothing to do with the joke and everything to do with a war few investors saw coming.
At 6:18 p.m. ET on October 8, 2026, Elon Musk posted on X: “Excited to announce that all super intelligence organizations have now jointly agreed to the ultimate in AI/SI safety: Moving all testing to Delta Airlines flights, where accessing the Internet is utterly impossible!” The post drew 91,350 likes. It is a joke aimed at the airline’s Wi-Fi.
The next morning, Delta Air Lines (NYSE:DAL | DAL Price Prediction) cut its outlook. The new full-year adjusted EPS forecast is between $5.10 and $5.60, down from $6.50 to $7.50 in July, according to CNBC. Free cash flow guidance fell to $2.5 billion from $4 billion, CNBC reported. The forecast cut comes from jet fuel costs.
What Delta Committed To in Its October 9 Filing The guidance is disclosed in an 8-K filed at 06:30 ET. Gulf region jet fuel cost $4.34 a gallon on Thursday, versus $2.19 a year earlier, CNBC reported. Delta’s added fuel cost for the year is $6 billion, linked to the Iran war that began in February, according to CNBC.
Ed Bastian said demand remains strong: “The consumer response continues to be quite strong. We’re seeing it across all channels, all cabins of service, all geographies, business, leisure.” CNBC reported that Delta expects fourth-quarter revenue to grow 20%, up from 16% in the third quarter. Delta’s long-term goals, such as mid-teens margins, are still only goals.
What Shareholders Should Take From the Numbers CNBC reported net income of $756 million, or $1.15 a share, down 47% from $1.42 billion, or $2.17 per share, a year earlier.
Adjusted EPS was $1.72 against $1.75 expected, marking the first miss in two years, according to CNBC. A correction later raised adjusted EPS to $1.76, according to CNBC. The guidance cut has larger impact for the full year.
Musk Feud Sits in the Background Delta chose Amazon (NASDAQ:AMZN) for satellite internet over SpaceX. Elon Musk wrote on X that Delta’s chief executive would “lose his job over this.” Bastian told staff at an internal event, “We do not want to be with Elon Musk. Trust me.” United Airlines (NASDAQ:UAL) uses Starlink on more than 600 jets, according to CNBC.
Bastian said “everyone’s entitled to their opinion” and “There’s no tit-for-tat as far as I’m concerned.” Delta held talks with SpaceX six years ago, but SpaceX “weren’t ready to scale.”
The stock was at $79.57 at 9:42 a.m. ET, down 3.13%. It has lost 5.42% over the past week but is up 15.54% year to date.
Higher fares need to cover the fuel bill. Delta’s December-quarter filing should land inside its fourth-quarter EPS range of $1.15 to $1.65. Keep an eye on whether the stock holds above $79.16. Jet fuel prices remain the largest driver factor in Delta’s profit forecast.
Contact [email protected] for any questions or corrections.
Oscar Munoz, former United Airlines chairman and CEO, joins ‘Squawk on the Street' to discuss Delta earnings, which missed Wall Street earnings estimates for the first time in two years.
Shares of Delta Air Lines are down over 3% Friday morning after the company released its third-quarter earnings report.
The airline’s revenue rose 16% year-over-year (YOY) from $15.20 billion to $17.59 billion. However, it failed to reach Wall Street’s expected $17.67 billion, according to consensus estimates cited by CNBC.
Similarly, it fell short on earnings per share, reporting $1.72 adjusted rather than the predicted $1.75.
Delta also saw its net income fall significantly. The company reported $1.15 billion in net income, down 47% YOY from $2.17 billion.
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Skyrocketing fuel costsGiven the ongoing Iran War-aggravated fuel crisis, it’s not surprising that Delta’s fuel expense and average fuel price per gallon have skyrocketed.
The U.S. air carrier saw its fuel expense rise 69% YOY to $4.35 billion, while average price per gallon rose 68% YOY to $3.80.
In the report, Delta CEO Ed Bastian claimed that Delta is strong enough to navigate this issue.
Explore Topicsair travelairlinesbusiness travelDelta Air Lines
Delta Air Lines (DAL - Free Report) came out with quarterly earnings of $1.72 per share, missing the Zacks Consensus Estimate of $1.8 per share. This compares to earnings of $1.71 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -4.44%. A quarter ago, it was expected that this airline would post earnings of $1.51 per share when it actually produced earnings of $1.56, delivering a surprise of +3.31%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Delta, which belongs to the Zacks Transportation - Airline industry, posted revenues of $17.59 billion for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.89%. This compares to year-ago revenues of $16.67 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Delta shares have added about 18.4% since the beginning of the year versus the S&P 500's gain of 13.4%.
What's Next for Delta?While Delta has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Delta was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.60 on $17.36 billion in revenues for the coming quarter and $5.34 on $66.84 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 5% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Alaska Air Group (ALK - Free Report) , is yet to report results for the quarter ended September 2026. The results are expected to be released on October 20.
This airline is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of -61.9%. The consensus EPS estimate for the quarter has been revised 108.2% lower over the last 30 days to the current level.
Alaska Air Group's revenues are expected to be $4.31 billion, up 14.5% from the year-ago quarter.
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Delta Air Lines Inc (NYSE:DAL) reported September-quarter adjusted earnings of $1.72 a share, below analysts’ expectations of $1.76, and cut its 2026 profit forecast as soaring fuel costs eroded margins.
The airline now expects adjusted earnings of $5.10 to $5.60 a share for 2026, down from its previous forecast of $6.50 to $7.50, as higher jet fuel prices add pressure to operating costs.
Delta reported quarterly revenue of $17.6 billion, up 16% from a year earlier, reflecting resilient demand for air travel despite rising ticket prices and geopolitical uncertainty.
Adjusted fuel expenses jumped 62% to $4.1 billion during the quarter, while the average fuel price rose 60% to $3.61 a gallon, weighing on profitability.
Adjusted operating margin, which measures operating profit as a share of revenue, fell to 9.4% from 11.1% a year earlier.
Delta expects fourth-quarter revenue to grow about 20% year on year, supported by demand across domestic and international routes, while forecasting adjusted earnings of $1.15 to $1.65 a share.
The carrier expects fuel to cost about $4.25 a gallon in the December quarter, including a benefit from its refinery business, compared with $2.50 a gallon before the US and Israeli military action against Iran began in February.
Delta expects full-year adjusted pre-tax profit of about $4.5 billion and free cash flow of $2.5 billion, while planning to repay more than $2 billion of debt.
The airline generated $463 million in free cash flow during the September quarter and ended the period with $6.9 billion in liquidity, including available credit facilities.
The results highlight the challenge facing airlines as robust travel demand and higher revenues struggle to offset rising fuel expenses amid geopolitical disruption.
Shares of Delta lost 2.5% in premarket trading.
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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
Delta Air Lines missed earnings estimates for the first time in two years and slashed its 2026 profit outlook as high fuel prices persist, but CEO Ed Bastian said higher fares aren't turning off travelers.
Delta on Friday forecast full-year earnings per share of between $5.10 and $5.60 on an adjusted basis, compared with its outlook in July, when fuel prices were lower, of $6.50 to $7.50 a share. The company's fourth-quarter guidance was below analyst estimates, too.
Delta cut its free cash flow outlook for the year to $2.5 billion, from as much as $4 billion it expected in July.
Still, Bastian said in an interview that fares have continued to tick up as the airline passes along much of a $6 billion increase in fuel costs this year, and that travelers keep booking.
"The consumer response continues to be quite strong. We're seeing it across all channels, all cabins of service, all geographies, business, leisure," he said.
Delta forecast a 20% increase in revenue for the fourth quarter over the same period last year, more than the 16% rise in the third quarter, when adjusting for the airline's benefit from its refinery in Trainer, Pennsylvania, where it refines crude oil into jet fuel and other products, giving it an advantage over other carriers.
"Obviously the fuel pricing, the volatility of fuel prices have something to do with that," Bastian said.
Delta is the country's most profitable airline and the first to report results from the third quarter, which encompasses the busy summer season.
Costs continued to weigh on the bottom line. The fuel price surge since the Iran war began in February has put a damper on airline profits even as carriers flex pricing power. The latest inflation read in September showed airfare up more than 23% from a year earlier.
Here's what the company reported for the third quarter compared with what Wall Street was expecting, based on consensus estimates from LSEG:
Earnings per share: $1.72 adjusted vs. $1.75 expectedAdjusted revenue: $17.59 billion adjusted vs. $17.67 billion expectedDelta reported net income of $756 million, or $1.15 a share, down 47% from $1.42 billion, or $2.17 per share, a year earlier. Adjusting for one-time items, Delta posted earnings of $1.76 per share.
Adjusting for sales from its refinery, maintenance business and profit-sharing, revenue rose 16% from the previous year to $17.59 billion. Operating revenue jumped 21% in the third quarter to $20.19 billion.
Delta's premium revenue, which has become a larger portion of its total sales, grew 18% in the third quarter to $6.82 billion, while main cabin sales rose only 12% to $6.8 billion.
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
SummaryCompaniesDelta cuts annual profit forecast as fuel bill rises by $6 billionSteep fare increases test how much more travelers will payRefinery expected to generate $700 million profit, cushioning fuel hitCHICAGO, Oct 9 (Reuters) - Delta Air Lines (DAL.N), opens new tab cut its annual profit forecast by nearly a quarter on Friday, as surging fuel costs, expected to add $6 billion to its bill in 2026, overwhelmed resilient travel demand and higher ticket prices.
Its shares fell 3.5% in premarket trading after the carrier cut its 2026 profit forecast for the first time this year and lifted its projected fuel-cost increase by $2 billion as the Iran war has driven jet fuel prices sharply higher worldwide. With no end to the war in sight, carriers are confronting their worst crisis since the pandemic.
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The downgrade underscores a growing challenge for the industry: whether passengers will absorb further fare increases if fuel prices remain elevated. Airlines have already raised fares substantially this year, and analysts warn further increases could test travelers' willingness to keep spending.
Delta, the first major global carrier to report third-quarter results, said fuel expenses for the period rose 62% from a year earlier to $4.1 billion, exceeding its July forecast by more than $500 million.
"All of it's fuel," Delta Chief Financial Officer Erik Snell told reporters when asked what drove the forecast cut, citing increases in both
crude oil and refined jet fuel prices since the summer.
Delta now expects adjusted annual earnings of $5.10 to $5.60 a share, down from the $6.50 to $7.50 it forecast in July. The new midpoint of $5.35 is below analysts' average estimate of $5.46, according to LSEG. It forecast $4.5 billion in adjusted pre-tax profit for 2026.
Third-quarter adjusted earnings of $1.72 a share narrowly missed analysts' average estimate of $1.76, according to LSEG. Its adjusted operating margin fell to 9.4% from 11.1%.
Rivals United Airlines (UAL.O), opens new tab, American Airlines (AAL.O), opens new tab and Southwest Airlines (LUV.N), opens new tab are due to report later this month. Ryanair Group (RYA.I), opens new tab CEO Michael O'Leary warned on Thursday that European airlines could face more than another year of elevated fuel costs due to the war.
HIGHER FARESUS airlines spent $42.9 billion on fuel for scheduled flights in the first eight months of 2026, nearly $13.2 billion more than a year earlier, despite using slightly less fuel, according to the Bureau of Transportation Statistics.
Strong demand and limited growth in seats have helped carriers pass higher fuel costs on to passengers. US airline fares rose an average of about 25% from a year earlier in the five months through August, according to the Bureau of Labor Statistics' consumer price index.
With fuel prices remaining elevated and planned industry capacity growth set to accelerate in the fourth quarter from the third, analysts are watching whether carriers, including Delta, can raise fares further without discouraging travel.
Deutsche Bank analysts expect the industry to recover a smaller share of higher fuel costs through revenue measures in the fourth quarter, with full recovery not expected until early 2027.
Delta said demand remains strong. With almost 60% of the fourth quarter already booked, it expects revenue growth of about 20% from a year ago, Snell said.
It forecast fourth-quarter adjusted earnings of $1.15 to $1.65 a share, with the $1.40 midpoint roughly in line with analysts' average estimate of $1.39, according to LSEG.
REFINERY ADVANTAGEDelta has an advantage over other major US airlines: its ownership of a refinery outside Philadelphia that Snell expects to generate $700 million in profit this year.
"We have a refinery that gives us an offset, a partial offset to fuel prices that no one else does," he said.
Bought in 2012, the Monroe refinery processes crude oil into jet fuel and other products. Delta still pays market prices for fuel transferred to its airline operations, but retains the refining profit within the company.
That helps when the gap between crude and refined fuel prices widens, increasing costs for airlines buying from outside suppliers. The protection varies with refining margins, however, and the refinery can lose money when those margins weaken.
But the refinery can only partly cushion the impact of higher fuel prices. Even with a projected refinery benefit of 40 cents a gallon, Delta expects its fuel cost to rise to $4.25 a gallon in the fourth quarter from $3.61 in the third.
Snell said fuel costs were expected to stay elevated for some time.
"Ultimately, fuel will come down. When that is, we're not exactly sure," he said.
Adds details and background in paragraphs 2, 4 and 5
Reporting by Rajesh Kumar Singh and Shivansh Tiwary; Editing by Jamie Freed, Christian Plumb and Pooja Desai
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Is Delta Air Lines Inc (DAL) Stock Overvalued After Q3 Earnings Miss? EPS at $1.72 vs. $1.93 Estimated, Revenue at $20.2 Billion Beat Estimates Overview of Financial Results and Analyst Comparisons
Delta Air Lines Inc DAL released its 8-K filing on October 9, 2026, revealing its financial results for the September quarter of 2026. For the quarter, Delta reported earnings per share (EPS) of $1.72, slightly below the estimated EPS of $1.93. While revenue reached $20.2 billion, surpassing analyst estimates of $17.65 billion, challenges remained concerning resilient fuel prices. This summary outlines Delta's financial performance, associated risks, and future outlook.
Delta Air Lines is a major U.S. airline headquartered in Atlanta, Georgia. It operates a hub-and-spoke network serving hundreds of destinations across the United States and internationally, with principal hubs in cities such as Atlanta, New York, and Los Angeles. Delta's operations include passenger transportation, cargo services, and a robust loyalty program, SkyMiles, which significantly contributes to its ancillary revenue. The company also has a network of partnerships and joint ventures which strengthen its market position.
Performance Highlights and ChallengesDelta's financial results showcase a reservation in the company's operations, as it matched its pre-tax profit of $1.5 billion from the previous year despite facing a challenging high fuel cost environment, where it absorbed over $500 million in increased fuel expenses. The company recorded operating revenue growth of 16% year-over-year, supported by strong demand and healthy yield growth, yet saw a net income drop of 47% to $756 million compared to the same quarter last year.
While the revenue growth is a positive signal, significant operational challenges remain, including rising fuel prices, which posed cost pressures. As fuel prices continue to fluctuate, Delta faces the risk of escalating operating expenses, which could further squeeze profit margins if the company cannot effectively pass on these costs to consumers.
Financial Achievements and Key MetricsIn terms of financial achievements, Delta reported operating revenue of $20.2 billion and a notable operating cash flow of $1.7 billion. Delta's focus on diversifying its revenue streams is evident, with 61% of total revenue coming from non-passenger sources and premium revenue increasing by 18% year-over-year. The effective management of operational costs, alongside a promising outlook for the December quarter, which forecasts a revenue growth of approximately 20%, positions Delta favorably within the transportation industry.
Financial MetricsQ3 2026Q3 2025% ChangeOperating Revenue$20.2 billion$16.7 billion21%Net Income$756 million$1.4 billion-47%Earnings per Share (EPS)$1.72 (non-GAAP)$1.701%Operating Cash Flow$1.7 billion$1.8 billion-7%In terms of costs, operating expenses increased significantly—by 25% year-over-year—primarily driven by soaring fuel costs. This continued trend emphasizes the importance of stringent cost management strategies for maintaining profitability.
“Demand remains strong, supported by consumers’ growing preference for experiences and travel... Our resilience reflects the structural durability we’ve built over many years,” stated Ed Bastian, Delta’s chief executive officer.GuruFocus Valuation CheckAccording to GuruFocus, Delta Air Lines Inc DAL has a GF Score of 81/100, indicating strong overall performance but suggesting that the stock appears overvalued with a GF Value pegged at $58.69, while the current market price stands at approximately $82.14—showing a 40.0% premium. This price discrepancy makes it essential for investors to analyze the earnings potential against the backdrop of high operating costs.
In terms of financial strength, Delta scores 6/10, reflecting adequate leverage but highlighting the need for continued cost monitoring given the downward trend in profitability rank of 8/10. The growth rank of 7/10 bolsters a positive outlook for potential sustainable growth amid challenges. Notably, insider activity indicates caution, as insiders sold $124.5 million worth of shares over the past 12 months, suggesting a need to proceed with caution.
For a deeper dive, visit the Delta Air Lines Inc stock page on GuruFocus.
In conclusion, as Delta Air Lines Inc navigates an energetic recovery trajectory with improving demand, market participants should consider both the inherent challenges of fuel costs alongside the company’s capabilities to adjust and thrive in the evolving airline industry landscape.
Explore the complete 8-K earnings release (here) from Delta Air Lines Inc for further details.
GuruFocus context: GuruFocus’ GF Value™ estimates fair value near $58.69 (40.0% overvalued); its GF Score™ is 81/100; 15 gurus currently hold the stock, with 7 adding and 7 trimming positions in recent quarters — guru 13F data Simply Wall St and Morningstar don’t have. See the full Delta Air Lines Inc DAL research.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
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.
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With U.S. stock futures trading higher this morning on Friday, some of the stocks that may grab investor focus today are as follows:
Wall Street expects Delta Air Lines Inc. (NYSE:DAL) to post quarterly earnings of $1.85 per share on revenue of $17.64 billion before the opening bell, according to data from Benzinga Pro. Delta Air shares fell 1% to close at $82.14 on Thursday. Park Aerospace Corp. (NYSE:PKE) reported upbeat earnings for the second quarter. The company posted quarterly earnings of 21 cents per share, which beat the analyst consensus estimate of 17 cents per share. The company reported quarterly sales of $20.791 million, which beat the analyst consensus estimate of $20.012 million. Park Aerospace shares gained 1.8% to $30.20 in the after-hours trading session. Analysts are expecting New Horizon Aircraft Ltd. (NASDAQ:HOVR) to post a quarterly loss of 8 cents per share. The company will release earnings before the markets open. New Horizon Aircraft shares jumped 5.9% to $1.62 in after-hours trading. Check out our premarket coverage here
MFA Financial Inc. (NYSE:MFA) announced that Bryan Wulfsohn will succeed Craig Knutson as CEO effective July 1, 2027. MFA Financial shares gained 1.2% to $7.27 in the after-hours trading session. RenX Enterprises Corp. (NASDAQ:RENX) filed a registration statement to register the resale of up to 24.28 million shares of common stock by selling stockholders. RenX Enterprises shares dipped 6.9% to $1.61 in after-hours trading. Photo via Shutterstock
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Delta Air Lines (NYSE:DAL) looks to carry momentum forward as one of the few airlines up in share price since the U.S.-Iran war began. The company reports third-quarter financial results Friday before the market opens.
Analysts expect third-quarter revenue of $17.64 billion, up from $16.67 billion a year earlier, according to Benzinga Pro data. The company has beaten revenue estimates in 23 straight quarters.
Analysts also expect earnings per share of $1.85, up from $1.71. Delta has topped EPS estimates in seven of the last 10 quarters, including the second quarter.
Delta Analyst RatingsAnalysts have been lowering their price targets on Delta stock in recent weeks. Here are some of the most recent analyst ratings on Delta stock and their price targets:
Bernstein: Maintained Outperform rating, lowered price target from $106 to $100 Susquehanna: Maintained Positive rating, lowered price target from $105 to $100 Wells Fargo: Maintained Overweight rating, lowered price target from $105 to $100 TD Cowen: Maintained Buy rating, lowered price target from $105 to $101 Key Items to WatchDelta reported a strong second quarter with passenger revenue up 13% year-over-year, including premium-product revenue up 17% year-over-year. Investors and analysts will want to see similar growth for the third quarter.
Read Next
The key item to watch outside of overall revenue will be fuel costs, which are one of the largest costs for an airline company.
Rising oil prices are proving to be a negative catalyst for the airline sector. In the second quarter, adjusted fuel expenses rose 77% year-over-year for Delta, marking the highest quarterly fuel expense in company history.
Despite the increased costs, Delta reaffirmed its full-year outlook for earnings, highlighting the company’s momentum and ability to offset the higher fuel costs.
Analysts and investors will look for similar commentary in Q3, including guidance for the rest of the current fiscal year and perhaps an early read on the next fiscal year.
Unlike other large airline stocks, Delta shares are up year-to-date, with a current 20.1% return. By comparison, its peers —American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL) and Southwest Airlines (NYSE:LUV) — are down 17.8%, 3.5% and 0.3% respectively, in 2026.
The US Global Jets ETF (NYSE:JETS), which tracks the airline sector, is down 2.4% year-to-date in 2026. Delta is the second-largest position, at 11.3% of assets.
A strong report from Delta could help boost the airline sector overall.
Delta Air Lines Stock Price ActionDelta stock is down 0.4% to $82.63 on Thursday versus a 52-week trading range of $55.03 to $95.68.
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.
Analysts slashed their Delta Air Lines earnings estimates below the airline's own guidance, yet nearly all 25 analysts kept their Buy ratings intact. Something has to give when Delta reports Friday morning, and the gap between Wall Street's math and…
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Wall Street has cut its numbers for Delta Air Lines (NYSE: DAL | DAL Price Prediction) below the airline’s own guidance, but the Buy ratings remain in place. Delta reports third-quarter results before the opening bell on Friday, October 9. For the shareholders, this gap is the story.
Analysts Lowered the Number but Kept the Recommendation Last quarter, adjusted EPS of $1.56 beat estimates, while revenue of $17.67 billion came in below them. Delta’s results release said the company “delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history.” Fuel averaged $3.93 per gallon.
AlphaStreet reports that the consensus has dropped 10.9% in a month, from $2.11 to $1.88. That puts it under the $2.00 low end of the guidance range topped at $2.50. The ratings point the other way: nearly all the 25 ratings are Buy or better. The average price target is $101.85, against a recent price of $82.97. Shares are up 20.1% year to date. Either Delta will reset expectations lower, or analysts have cut too far. The ratings suggest Wall Street leans toward the latter.
Revenue Still Grows While Earnings Estimates Shrink Metric Consensus Prior Year Implied Growth Q3 EPS $1.88 $1.71 9.9% Q3 Revenue $18.92B $16.67B 13.5% FY 2026 EPS $5.87 $5.82 0.8% FY 2026 Revenue $73.56B $63.36B 16.1% The full-year EPS consensus also trails Delta’s confirmed $6.50 to $7.50 range. With revenue still expected to grow, the pressure on earnings is coming from costs.
Fuel Recovery and Flight Reliability Decide This Quarter Fuel hedging means locking in future fuel prices with financial contracts. It works when prices spike and backfires when they fall. On the Odd Lots episode How Airlines Actually Hedge Higher Fuel Prices, guest David Kang, a former group treasurer at Qatar Airways, said that “a lot of airlines in 2020 lost a lot of money fuel hedging. Delta dropped over $1 billion.” Many carriers now skip hedging and pass costs on through fares. Delta’s partial offset is its own refinery. Its guidance assumes fuel at $3.15 per gallon.
Consumer advocate Clark Howard said on his September 18 podcast that “Delta is having the worst cancellation rate in the industry, I think.” That is one commentator’s view, and Delta does not report it as a metric. Still, cancellations cost money through rebooking, crew repositioning, hotel vouchers, and compensation, and they wear down the premium brand that supports Delta’s higher fares. Listen for completion factor (the share of scheduled flights actually flown) and any comments on staffing.
Friday Tests Whether Delta Earns a Growth Multiple On Mad Money in July, Jim Cramer said that if airlines are “becoming secular growth winners and not just boom and bust cyclical stocks, you’re going to start to see these stocks get re-rated higher.” Cyclical stocks trade at low multiples because their profits rise and fall with the economy. If Delta protects its margin while costs rise, that supports the growth case. In September, Cramer took the bear side, warning that with Treasuries at 5.3%, airlines “can’t expand, they can’t grow.”
Here is what to watch for, in order:
EPS inside or below guidance Unit revenue (revenue per seat mile) and premium demand Fuel cost per gallon Reliability An operating margin that holds inside the 11% to 13% forecast range matters most.
Contact [email protected] for any questions or corrections.
Key Takeaways
Delta Air Lines is due to report earnings Friday morning. Options pricing suggests traders see the stock swinging up to 5% by the end of the week. Analysts expect Delta to report rising revenues, but warned rising fuel costs could squeeze profits.
Delta Air Lines is set to report earnings Friday morning, with traders looking for a sizable move from the stock.1
Based on current options pricing, Delta (DAL) shares are seen swinging up to 5% in either direction by the end of the week. A move of that size from Tuesday’s close could send the shares as high as $88, or pull them back below $80.
Delta shares have gained 20% since the start of the year, though they’ve pulled back from their June record amid worries about the impact of rising fuel prices as the war in Iran drags on.
Why This Matters to Investors
Delta’s earnings could offer insights into the state of travel demand, and how companies are dealing with higher fuel prices.
UBS analysts told clients in a recent note that with elevated fuel prices widely expected to squeeze Delta’s profits, investors are likely to be more focused on signals of demand and Delta’s sales forecast for the fourth quarter.2
Delta is projected to report third-quarter revenue of $19.34 billion, a gain of 16% year-over-year, along with adjusted earnings of $1.84 per share, up 13 cents from a year ago. Revenue per available seat mile, a key metric in the airline industry, likely rose 15% to 24.31 cents, per Visible Alpha estimates.
Wall Street analysts are overwhelmingly bullish on Delta heading into the report, with all 10 analysts tracked by Visible Alpha calling the stock a “buy.” Their average price target of $104 would suggest nearly 25% upside from Tuesday’s close.
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Delta Air Lines Inc (NYSE:DAL) faces a high bar for fourth-quarter revenue growth, with UBS saying investors are focused on whether the airline can offset a potential earnings guidance cut with stronger sales.
Investors expect third-quarter revenue growth of about 16% to 16.5%, while expectations for earnings per share range from $1.70 to $1.90, compared with UBS's $1.70 estimate and a $1.94 consensus.
UBS said the fourth-quarter outlook is likely to be the key focus, with most investors expecting revenue growth of about 19%, compared with UBS's 19.4% estimate and a 17.7% consensus.
A fourth-quarter revenue growth forecast above 20% is not priced into the shares and would likely be well received by the market, UBS said.
Investors generally expect Delta to guide for fourth-quarter earnings per share of $1.25 to $1.75, based on fuel costs of about $4.00 to $4.10 a gallon, compared with a Visible Alpha consensus of $3.87.
UBS said a lower fuel assumption of $3.90 to $3.95 a gallon could lift the fourth-quarter earnings range to $1.50 to $2.00, although it considers such an assumption unlikely.
The bank said the revenue outlook should matter more than headline earnings guidance because fuel assumptions create significant sensitivity in the earnings forecast.
Delta previously implied fourth-quarter earnings per share of about $2.50 at the midpoint, so a $1.25 to $1.75 forecast would represent a reduction of nearly 40% and cut the full-year guidance by nearly 20%.
The airline is expected to generate a 40 to 45 cent gain per gallon from its refinery in the fourth quarter if current fuel cracks persist.
UBS expects third-quarter CASM-ex, a measure of operating costs excluding fuel and certain items, to rise 6.5% to 7.0%, compared with 6.8% in the second quarter.
The bank expects fourth-quarter CASM-ex growth to improve but remain in the mid-single digits, with a return to Delta's long-term low-single-digit target expected only by 2027.
UBS rates Delta a 'buy' and maintains its $105 price target, based on 10 times its unchanged 2029 earnings estimate of $10.50 per share.
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Central Pacific Bank Trust Division reduced its holdings in shares of Delta Air Lines, Inc. (NYSE:DAL – Free Report) by 24.0% during the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 20,189 shares of the transportation company’s stock after selling 6,370 shares during the quarter. Central Pacific Bank Trust Division’s holdings in Delta Air Lines were worth $1,685,000 as of its most recent SEC filing.
A number of other institutional investors have also recently bought and sold shares of DAL. Cerity Partners LLC raised its position in Delta Air Lines by 13.6% in the fourth quarter. Cerity Partners LLC now owns 425,654 shares of the transportation company’s stock worth $29,540,000 after acquiring an additional 51,041 shares during the period. Bessemer Group Inc. increased its stake in shares of Delta Air Lines by 105.3% during the 1st quarter. Bessemer Group Inc. now owns 39,018 shares of the transportation company’s stock worth $2,595,000 after purchasing an additional 20,012 shares during the last quarter. Baird Financial Group Inc. raised its holdings in shares of Delta Air Lines by 45.1% in the 2nd quarter. Baird Financial Group Inc. now owns 449,986 shares of the transportation company’s stock worth $42,146,000 after purchasing an additional 139,799 shares during the period. NewEdge Advisors LLC raised its holdings in shares of Delta Air Lines by 102.3% in the 1st quarter. NewEdge Advisors LLC now owns 105,966 shares of the transportation company’s stock worth $7,045,000 after purchasing an additional 53,581 shares during the period. Finally, Econ Financial Services Corp lifted its stake in Delta Air Lines by 49.4% in the first quarter. Econ Financial Services Corp now owns 68,743 shares of the transportation company’s stock valued at $4,570,000 after purchasing an additional 22,718 shares during the last quarter. Institutional investors own 69.93% of the company’s stock.
Wall Street Analysts Forecast Growth A number of analysts have issued reports on DAL shares. Jefferies Financial Group raised their target price on Delta Air Lines from $105.00 to $110.00 and gave the stock a “buy” rating in a research report on Friday, July 10th. Weiss Ratings raised Delta Air Lines from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday, July 21st. Seaport Research Partners dropped their price objective on shares of Delta Air Lines from $108.00 to $95.00 and set a “buy” rating on the stock in a report on Friday, September 25th. Sanford C. Bernstein reiterated an “outperform” rating and set a $106.00 target price on shares of Delta Air Lines in a research report on Monday, July 13th. Finally, Morgan Stanley lifted their target price on shares of Delta Air Lines from $115.00 to $125.00 and gave the stock an “overweight” rating in a research note on Friday, July 10th. Twenty-three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $99.75.
Read Our Latest Research Report on DAL Delta Air Lines Stock Performance NYSE:DAL opened at $83.10 on Tuesday. The business’s fifty day moving average is $83.93 and its 200 day moving average is $79.43. The firm has a market cap of $54.65 billion, a price-to-earnings ratio of 13.78, a PEG ratio of 1.21 and a beta of 1.34. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.35 and a current ratio of 0.42. Delta Air Lines, Inc. has a 52-week low of $55.03 and a 52-week high of $95.68.
Delta Air Lines (NYSE:DAL – Get Free Report) last issued its earnings results on Thursday, July 9th. The transportation company reported $1.56 EPS for the quarter, topping the consensus estimate of $1.49 by $0.07. The business had revenue of $17.67 billion during the quarter, compared to the consensus estimate of $17.43 billion. Delta Air Lines had a return on equity of 17.52% and a net margin of 5.79%.The firm’s revenue was up 18.7% compared to the same quarter last year. During the same quarter last year, the company earned $2.10 EPS. Research analysts predict that Delta Air Lines, Inc. will post 5.99 EPS for the current year.
Delta Air Lines Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 5th. Investors of record on Thursday, October 15th will be paid a dividend of $0.2150 per share. The ex-dividend date of this dividend is Thursday, October 15th. This represents a $0.86 annualized dividend and a yield of 1.0%. Delta Air Lines’s payout ratio is currently 14.26%.
Trending Headlines about Delta Air Lines Here are the key news stories impacting Delta Air Lines this week:
Positive Sentiment: Healthy travel demand and anticipated year-over-year revenue growth could support Delta’s third-quarter performance and partially offset rising expenses. Delta Air Lines Gears Up for Q3 Earnings: What’s in Store? Neutral Sentiment: Delta is scheduled to report third-quarter fiscal 2026 results before the market opens on October 9. Options trading implies a potentially large 6.42% move after the release, highlighting elevated event risk rather than a clear directional expectation. Delta Air Lines Stock Options Signal a 6.42% Move After Q3 Results Neutral Sentiment: Analyst views on Delta remain mixed, keeping expectations for the earnings report and near-term valuation uncertain. Analysts’ Opinions Are Mixed on Delta Air Lines Negative Sentiment: Higher fuel and non-fuel costs, along with a refinery outage, are expected to pressure third-quarter margins despite strong demand and revenue growth. Geopolitical risks are also keeping oil prices elevated, creating an additional risk for airline profitability. Geopolitical Risks Keep Oil Prices in Focus Negative Sentiment: Investors are also examining whether Delta’s cash generation is keeping pace with earnings. Net income over the past year exceeded free cash flow by more than $1 billion, raising questions about the quality and sustainability of reported profits. Is Delta’s Cash Flow Keeping Pace With Its Earnings? Insiders Place Their Bets In other Delta Air Lines news, EVP Steven Sear sold 40,460 shares of the firm’s stock in a transaction on Wednesday, August 5th. The shares were sold at an average price of $93.55, for a total value of $3,785,033.00. Following the completion of the transaction, the executive vice president directly owned 104,404 shares of the company’s stock, valued at $9,766,994.20. This trade represents a 27.93% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Alain Bellemare sold 35,000 shares of the business’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $92.72, for a total transaction of $3,245,200.00. Following the transaction, the executive vice president owned 95,025 shares of the company’s stock, valued at $8,810,718. This trade represents a 26.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 356,726 shares of company stock worth $33,081,037. Company insiders own 0.80% of the company’s stock.
Delta Air Lines Company Profile (Free Report)
Delta Air Lines, Inc is a major U.S. airline that provides scheduled passenger and air freight transportation. The company serves destinations throughout the United States and connects customers to international markets across Europe, Asia, Latin America, Canada, Africa and the Caribbean through its own operations and regional airline partners.
Delta offers multiple classes of passenger service, including premium cabins and its main cabin, along with travel-related products such as vacation packages and loyalty benefits through the SkyMiles program.
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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.
Image Source: Zacks Investment Research
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 Delta Air Lines and LATAM have operated 83,000 flights and carried 17.4 million customers in four years.The joint venture's combined capacity has grown 31% since 2023 amid continued demand b/w the regions.DAL and LTM offer reciprocal loyalty perks, lounge access, priority services and baggage benefits. Delta Air Lines (DAL - Free Report) and LATAM Airlines (LTM - Free Report) have marked four years of their joint venture, with impressive growth in connectivity between North and South America. The partnership has operated 83,000 flights, 20.8 million seats offered and 17.4 million customers carried, significantly expanding travel options while creating a more integrated experience for passengers.
The 31% increase in combined capacity since 2023 is particularly noteworthy and reflects continued demand for travel between the two regions. Strong growth in markets such as Brazil, Ecuador and Peru, along with Argentina’s addition to the joint venture in 2025, has further strengthened the partnership’s regional reach.
Beyond expanding routes, the alliance has delivered tangible benefits for travelers through reciprocal Delta SkyMiles and LATAM Pass benefits, lounge access, priority services and baggage-related advantages. Initiatives such as digital baggage tracking and shared terminals at major airports are also helping create a smoother and more consistent travel experience.
The airlines’ separate maintenance agreement between Delta TechOps and LATAM Airlines Brasil further demonstrates the growing depth of their relationship. Cooperation in Airbus A320 component maintenance allows both carriers to leverage their technical expertise and strengthen their respective maintenance capabilities.
Overall, the Delta-LATAM joint venture has emerged as a strong example of how airline cooperation can improve connectivity, customer benefits and operational capabilities. With continued network expansion and deeper integration, the partnership is well positioned to play an increasingly important role in travel between North and South America.
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.
Image Source: Zacks Investment Research
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%.
Delta Air Lines (DAL - Free Report) closed at $83.08 in the latest trading session, marking a -1.2% move from the prior day. This move lagged the S&P 500's daily gain of 0.66%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.05%.
The airline's stock has climbed by 4.89% in the past month, exceeding the Transportation sector's loss of 3.02% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Delta Air Lines will be of great interest to investors. The company's earnings report is expected on October 9, 2026. In that report, analysts expect Delta Air Lines to post earnings of $1.96 per share. This would mark year-over-year growth of 14.62%. Simultaneously, our latest consensus estimate expects the revenue to be $17.7 billion, showing a 6.15% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.99 per share and revenue of $66.66 billion, indicating changes of +2.92% and +5.21%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Delta Air Lines should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.88% downward. Delta Air Lines currently has a Zacks Rank of #5 (Strong Sell).
Investors should also note Delta Air Lines's current valuation metrics, including its Forward P/E ratio of 14.04. This represents a premium compared to its industry average Forward P/E of 11.57.
Also, we should mention that DAL has a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Transportation - Airline industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 224, putting it in the bottom 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
