Delta Air Lines (DAL) investor relations material

Executive summary

• Record adjusted revenue was $17.6B, up 16% YoY on flat capacity; GAAP operating revenue was $20.2B, up 21%, including third-party refinery sales.

• Adjusted EPS was $1.72 versus $1.70 and adjusted pre-tax profit was $1.5B, while GAAP operating income fell 14% to $1.45B and net income fell 47% to $756M.

• Broad travel demand and diversified revenue supported results despite sharply higher fuel costs; FY26 free cash flow is expected at ~$2.5B.

Financial highlights

• Adjusted operating revenue rose 16% to $17.6B; GAAP operating revenue rose 21% to $20.2B. Adjusted operating expense increased 18% to $15.9B.

• GAAP diluted EPS was $1.15 versus $2.17; adjusted diluted EPS was $1.72 versus $1.70. Adjusted operating income was $1.66B, down 2%, and adjusted net income was $1.13B, up 2%.

• Adjusted free cash flow was $463M; GAAP operating cash flow was $1.7B. Nine-month operating cash flow was $5.7B and net income was $2.07B.

• Adjusted fuel price was $3.61/gal, including a 13¢/gal refinery benefit; GAAP average fuel price was $3.80/gal. Adjusted fuel expense rose 62% to $4.1B.

Outlook and guidance

• Q4 revenue growth is expected near 20% YoY, with 7%–9% operating margin and EPS of $1.15–$1.65; fuel guidance is ~$4.25/gal, including a ~$0.40 refinery benefit.

• Q4 seat growth is expected below 2%, with Main Cabin seats declining; unit revenue is expected to improve sequentially across Domestic and International.

• FY26 EPS guidance is $5.10–$5.60, free cash flow ~$2.5B, and gross leverage ~2.2x; planned debt paydown exceeds $2B.

• FY26 pre-tax profit is projected near $4.5B while absorbing a $6B YoY fuel-cost increase; 2027 non-fuel unit cost growth is expected in the low single digits.