Delta Air Lines has placed an order for 30 new Boeing 787‑10 Dreamliners, with options for an additional 30 aircraft. The planes will be equipped with GE Aerospace’s GEnx engines, a choice that underscores Delta’s commitment to a fuel‑efficient, high‑capacity fleet designed to replace older 767s on its long‑haul network.
Delta reported Q4 2025 earnings that beat consensus expectations. Earnings per share rose to $1.55 from an estimate of $1.52, a $0.03 (≈2%) beat driven by disciplined cost control and a favorable mix of premium‑class revenue. Total revenue reached $16.003 billion, up from the consensus estimate of $14.839 billion, largely supported by strong demand on trans‑Atlantic and South‑American routes. However, some reports noted a revenue miss of $14.61 billion, reflecting variability in market data and the impact of a government shutdown and FAA‑mandated flight reductions that pressured main‑cabin sales.
Investors reacted negatively to the earnings release, citing the revenue miss in certain reports and margin compression. Operating margin slipped to 10% from 10.2% in the prior year, a contraction attributed to higher labor costs, weather‑related disruptions, and the government shutdown’s effect on capacity. The decline in main‑cabin revenue—down 7% YoY—further dampened sentiment, even as premium‑product revenue grew 9%.
Strategically, the 787‑10 order positions Delta to capture more premium passengers on its high‑margin international routes. The aircraft’s larger capacity and the GEnx engines’ fuel‑efficiency—offering lower operating costs and higher time‑on‑wing—align with Delta’s long‑haul modernization plan and its focus on enhancing the customer experience. The order also strengthens Delta’s competitive stance against United and American, the other legacy carriers already operating the Dreamliner.
Management highlighted the order’s importance in a broader context. CEO Ed Bastian said the fleet upgrade “builds the fleet for the future, enhancing the customer experience and driving operational improvements.” CFO Dan Janki noted that the order “creates cost‑efficient scale across all widebody fleets” and that Delta’s free cash flow of $4.6 billion in 2025 supports continued debt paydown. Guidance for 2026 projects revenue growth of 5–7% YoY, Q1 2026 EPS of $0.50–$0.90, and full‑year EPS of $6.50–$7.50, reflecting confidence in sustained demand and cost discipline.
Headwinds remain, including the lingering effects of the government shutdown, FAA‑mandated flight reductions, weather disruptions, and high labor costs. Tailwinds include robust premium‑product demand, improving business travel, and the momentum of Delta’s fleet‑modernization program, all of which support the airline’s long‑term growth trajectory.
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