Delta Air Lines, Inc. (NYSE:DAL) stock slipped Tuesday after the company reported financial results for the fourth quarter and full year 2025, as well as issued guidance for the March quarter and full year 2026, citing improving demand trends and continued cost discipline.
For the December quarter, Delta reported GAAP operating revenue of $16.003 billion, up 3% year over year, and GAAP diluted EPS of $1.86.
Delta Air Lines reported fourth-quarter adjusted earnings of $1.55 per share, exceeding the $1.53 Wall Street estimate, while revenue climbed to $16.003 billion, surpassing the $15.585 billion consensus forecast.
GAAP operating income totaled $1.5 billion with a 9.2% margin, compared with 11.0% a year earlier, while adjusted operating margin was 10.1%, compared with 12.0% a year earlier.
Passenger revenue rose 1% year over year to $12.916 billion, while cargo revenue declined 1% to $246 million, and other revenue increased 14% to $2.841 billion.
Available seat miles increased 1.3% to 72.9 billion, revenue passenger miles declined 1% to 59.9 billion, and passenger load factor was 82%, down from 84% a year earlier.
Total revenue per available seat mile was 21.94 cents, with adjusted TRASM at 20.02 cents. Non-fuel CASM-Ex increased 4.0% to 14.27 cents, and the adjusted fuel price was $2.28 per gallon.
Main-cabin ticket revenue fell 7% from a year earlier, while revenue from premium products increased 9%.
Delta said December-quarter revenue growth was impacted by about 2 points due to the government shutdown, largely in the Domestic segment.
For the full-year 2025, Delta reported GAAP operating revenue of $63.364 billion, and GAAP diluted EPS of $7.66, with adjusted diluted EPS of $5.82.
Operating cash flow totaled $8.342 billion, and free cash flow was $4.643 billion. Cash and cash equivalents ended the year at $4.310 billion, total cash, including restricted cash, was $4.501 billion, and total debt and finance lease obligations were $14.113 billion.
CEO Ed Bastian said, “We generated $5 billion of pre-tax profit with a double-digit operating margin and record free cash flow of $4.6 billion, all while navigating a challenging environment,” and added, “2026 is off to a strong start with top-line growth accelerating on consumer and corporate demand. For the full year, we expect to deliver margin expansion and earnings growth of 20% year-over-year.”
“Delta generated record revenue of $58.3 billion while sustaining a unit revenue premium relative to the industry of nearly 115%. High-margin, diversified revenue streams grew high-single digits over prior year and reached 60% of total revenue, reflecting the power of Delta’s brand, growing demand for our premium products and the success of our integrated commercial and customer strategy,” said Glen Hauenstein, Delta’s president.
“Since the start of this year, cash sales trends have accelerated on top of last year’s strong performance, with momentum across the booking curve and all geographies. We expect March quarter revenue to grow 5% to 7% year-over-year, several points ahead of capacity growth.”
Outlook
The carrier forecast a March-quarter operating margin of 4.5% to 6%. Delta Air Lines expects first-quarter adjusted EPS of 50 cents to 90 cents, compared with the consensus estimate of 70 cents, while projecting revenue of $14.74 billion to $15.02 billion, above the Street’s $13.63 billion estimate.
The company projected full-year 2026 EPS guidance of $6.50 to $7.50, above the Street’s $5.79 estimate, and free cash flow outlook of $3 billion to $4 billion.
Delta also announced a new long-range fleet order, reaching an agreement with Boeing (NYSE:BA) to purchase thirty 787-10 widebody aircraft with options for an additional thirty, with deliveries scheduled to begin in 2031.
Separately, GE Aerospace (NYSE:GE) announced that Delta has selected GEnx engines to power 30 new Boeing 787-10 aircraft, with options for an additional 30. The agreement includes spare engines and long-term service support.
DAL Price Action: Delta Air Lines shares were down 4.97% at $67.50 during premarket trading on Tuesday, according to Benzinga Pro data.
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