Delta Air Lines (DAL) Q4 2025 earnings summary

Executive summary

• Achieved record full-year revenue of $58.3 billion, up 2.3% year-over-year, with a 10% operating margin and $5.82 EPS, and delivered $4.6 billion in free cash flow, the highest in company history.

• Pre-tax profit reached $5 billion, with double-digit return on invested capital and strong free cash flow generation, reinforcing industry leadership and operational durability.

• Premium, loyalty, cargo, and MRO revenue streams now represent 60% of total revenue, driving diversification and margin expansion.

• Announced a major fleet renewal with an order for 30 Boeing 787-10s, supporting international growth and efficiency.

• Leadership transition: Glen Hauenstein retiring, Joe Esposito named Chief Commercial Officer.

Financial highlights

• Q4 pre-tax profit of $1.3 billion, 10% operating margin, and $1.55 EPS; government shutdown reduced pre-tax profit by $200 million.

• Full-year free cash flow of $4.6 billion, with $2.6 billion in debt reduction; ended year with 2.4x gross leverage and $14 billion adjusted net debt.

• Full year 2025 GAAP operating revenue was $63.4B, operating income $5.8B (9.2% margin), pre-tax income $6.2B (9.8% margin), EPS $7.66, and operating cash flow $8.3B.

• American Express remuneration grew 11% to $8.2 billion, with over 1 million new card acquisitions.

• Return on invested capital reached 12%, well above cost of capital.

Outlook and guidance

• 2026 EPS expected at $6.50–$7.50, representing 20% year-over-year growth at midpoint.

• March quarter revenue projected to grow 5%-7% year-over-year, outpacing capacity growth.

• Free cash flow guidance for 2026 is $3–$4 billion, with CapEx of $5.5 billion and around 50 aircraft deliveries.

• Non-fuel unit cost growth for 2026 projected in line with long-term low single-digit targets.

• Leverage targeted at 2x by year-end 2026, with continued focus on debt reduction and growing shareholder returns.