Delta Air Lines Inc. reported fiscal 2025 fourth‑quarter results on January 13 2026, delivering adjusted earnings of $1.55 per share and total revenue of $16.00 billion. The earnings beat the consensus estimate of $1.53–$1.54 per share by $0.01–$0.02 and the revenue estimate of $15.75 billion by $0.25 billion, underscoring strong demand across its passenger network.
Operating margin fell to 9.2% from 11.0% a year earlier, a decline driven by a mix shift toward lower‑margin main‑cabin seats and a two‑point impact from the federal government shutdown that reduced domestic flight capacity. The company’s adjusted operating margin of 10.1% also slipped from 12.0% in Q4 2024, reflecting the same mix and shutdown pressures.
Operating income rose to $1.50 billion, supported by a 9% increase in premium‑cabin revenue to $5.70 billion and a 7% decline in main‑cabin revenue to $5.62 billion. The premium‑product lift offset the main‑cabin contraction, allowing Delta to maintain profitability despite the margin squeeze.
For fiscal 2026, Delta guided adjusted earnings per share of $6.50 to $7.50, a 20% year‑over‑year increase from the $5.82 per‑share EPS reported for 2025. The company also projected 5%–7% revenue growth for the March quarter and an operating‑margin target of 4.5%–6%. However, the Q1 2026 EPS guidance of $0.50 to $0.90, with a midpoint of $0.70, fell below the consensus estimate of $0.72–$0.76, contributing to a negative market reaction.
Revenue growth for the March quarter is expected to be driven by a 8% rise in corporate‑ticket revenue and continued strength in premium cabins, which have outpaced economy revenue for the first time in Q4 2025. The company’s focus on high‑margin segments is intended to offset the short‑term margin compression caused by the mix shift and shutdown effects.
Delta also announced a new long‑term fleet order for 30 Boeing 787‑10 Dreamliners, with options for an additional 30, and an agreement with GE Aerospace to equip the aircraft with GEnx engines. The order, announced on the same day as the earnings call, is part of Delta’s strategy to modernize its long‑haul fleet and support growth on high‑yield international routes.
CEO Ed Bastian highlighted the company’s confidence in premium demand, stating that “2026 is off to a strong start with top‑line growth accelerating on consumer and corporate demand.” CFO Dan Janki emphasized disciplined cost control, noting that “non‑fuel unit cost growth of 2% in 2025 was in line with our long‑term target, and we expect another year of cost performance aligned to our long‑term framework.”
Shares of Delta fell about 6% after the earnings release, as investors focused on the lower‑than‑expected Q1 2026 EPS guidance. The market reaction reflected concerns that near‑term profitability may be constrained by the margin compression and the need to invest in fleet expansion.
The earnings beat, margin compression, and forward guidance paint a nuanced picture: Delta’s premium‑centric strategy and corporate‑travel rebound are driving revenue growth, but the mix shift and shutdown‑related headwinds are compressing margins. The fleet order signals a long‑term commitment to international expansion, while the guidance indicates management’s confidence in sustaining earnings growth despite short‑term margin pressures.
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