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 billion pre-tax income.

• Delivered $4.6 billion in free cash flow, the highest in company history, and reduced leverage by over 50% in three years.

• Awarded a 4% pay increase and $1.3 billion in profit sharing to employees, among the largest in company history.

• Announced order for 30 Boeing 787-10s, with options for 30 more, to expand international network and replace older wide-body aircraft.

• 2026 earnings are projected to grow 20% year-over-year, with margin expansion and continued top-line growth driven by robust consumer and corporate demand.

Financial highlights

• Q4 pre-tax profit of $1.3 billion, operating margin of 10%, and EPS of $1.55.

• Full-year EPS of $5.82, return on invested capital of 12%, and free cash flow of $4.6 billion.

• December quarter 2025 GAAP operating revenue was $16.0B, operating income $1.5B (9.2% margin), pre-tax income $1.5B (9.5% margin), EPS $1.86, and operating cash flow $2.3B.

• 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.

Outlook and guidance

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

• Free cash flow guidance for 2026 is $3-$4 billion, with leverage targeted at 2x by year-end.

• March quarter revenue expected to grow 5%-7% year-over-year, with positive unit revenue growth.

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

• Capacity planned to grow 3% for the full year, focused on premium cabins.