Delta Air Lines Earnings Show Mixed Q4, Optimistic Outlook
Delta Air Lines earnings showed a shutdown-hit revenue shortfall while management issued next-year guidance and a widebody order, giving traders new focus.
KEY TAKEAWAYS
- Q4 adjusted EPS was $1.55, beating consensus, while revenue of $14.6B missed after a roughly 2pp shutdown hit.
- 2026 adjusted EPS guidance of $6.50-$7.50 implies about 20.0% growth but sits below $7.32 consensus.
- Firm order for 30 Boeing 787-10s with 30 options, deliveries from 2031, 25.0% better fuel efficiency per seat.
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Delta Air Lines (DAL) reported mixed fourth-quarter results on Jan. 13, 2026, as revenue fell short amid a government shutdown while adjusted earnings per share beat estimates. The company issued 2026 adjusted EPS guidance and announced a firm order for Boeing 787-10 jets to enhance long-term efficiency.
Fourth-Quarter and Full-Year Results
Delta said full-year 2025 revenue reached a record $58.3 billion, up 2.3% from 2024. Fourth-quarter revenue rose 1.2% year over year to $14.6 billion on 1.3% capacity growth but missed the $14.7 billion consensus. The company attributed roughly a two-percentage-point revenue hit to the government shutdown’s impact on domestic travel.
Adjusted fourth-quarter earnings per share were $1.55, beating the $1.52 consensus. Revenue from premium services, cargo, and maintenance increased 7% year over year and accounted for about 60% of total revenue.
For the full year, Delta generated $5.0 billion in pre-tax profit, reported a double-digit operating margin, and produced record free cash flow of $4.6 billion.
2026 Guidance and Boeing 787-10 Order
Management set 2026 adjusted EPS guidance between $6.50 and $7.50, implying about 20.0% growth at the midpoint but below the $7.32 consensus. For the March quarter, the company projected revenue growth of 5.0% to 7.0%, adjusted EPS of $0.50 to $0.90, and an operating margin of 4.5% to 6.0%. The EPS range centers near the $0.72 consensus.
Delta attributed the outlook to strong consumer and corporate demand and accelerating premium travel sales. The guidance aligns with existing capital-expenditure plans focused on fleet modernization to boost efficiency and international growth.
An SEC filing disclosed a definitive agreement to purchase 30 Boeing 787-10 aircraft, with options for 30 more. The order specifies GE Aerospace GEnx engines and services, with deliveries starting in 2031. Management said long-term financing has been secured for a substantial portion of the purchase.
The 787-10 is expected to deliver roughly 25.0% better fuel efficiency per seat compared with the aircraft it will replace. After the order, Delta has 232 narrowbody and 54 widebody jets on order.
Dan Janki, Delta’s chief financial officer, said, "Today’s 787 order adds diversity to our widebody order book, while creating cost-efficient scale across all widebody fleets."
Together, the quarter’s results, 2026 guidance, and widebody commitment reflect management’s focus on converting premium demand into higher margins while modernizing the fleet for long-term fuel and cost advantages.
