Delta Posts Record Revenue, Guides to 20% Earnings Growth
The airline reports $58.3 billion in 2025 revenue and forecasts $6.50-$7.50 EPS for 2026, citing strong premium and corporate travel demand.
Delta Air Lines delivered a record year and promised more to come.
The Atlanta-based carrier reported full-year 2025 revenue of $58.3 billion Tuesday, a record for the company, and guided 2026 earnings to $6.50-$7.50 per share. At the midpoint, that's more than 20% above 2025's adjusted EPS of $5.82.
The stock fell 4% in early trading despite the strong results—investors appear to be taking profits after a 48% run in 2025. The airline sector index dropped in sympathy, though the pullback looks more like valuation digestion than fundamental concern.
Fourth Quarter Results
Q4 revenue came in at $16.0 billion, with GAAP earnings of $1.86 per share. Adjusted EPS was $1.55, beating the $1.53 consensus estimate. Operating margin held at 10.1% adjusted, consistent with the full-year trend.
CEO Ed Bastian sounded upbeat: "2026 is off to a strong start with top-line growth accelerating on consumer and corporate demand."
That's the key takeaway. Corporate travel, which lagged the post-pandemic leisure recovery, has finally normalized. Delta's premium offerings—first class, Delta One, and Comfort+—continue to outperform main cabin, driving higher revenue per available seat mile.
Premium Travel Keeps Winning
Delta's strategy of betting on premium has paid off handsomely. Business travelers are flying again, and leisure travelers with money are trading up to better seats. The company's partnership with American Express generates billions in annual revenue through co-branded credit cards—though that program now faces uncertainty from Trump's proposed rate cap on card interest.
The airline also announced 30 new Boeing 787-10 orders with options for 30 more, deliveries starting in 2031. That's a long-term bet on international premium demand and a vote of confidence in Boeing's ability to execute after its recent production struggles.
2026 Outlook
Here's what Delta expects for this year:
| Metric | 2026 Guidance |
|---|---|
| EPS | $6.50-$7.50 |
| Q1 Revenue Growth | 5-7% YoY |
| Q1 EPS | $0.50-$0.90 |
| Free Cash Flow | $3-4 billion |
| Gross Leverage | ~2.0x |
The Q1 guide is wide—$0.50 to $0.90—because fuel prices and winter weather create outsized uncertainty in the first quarter. But the full-year target is what matters, and $7.00 at the midpoint represents substantial growth.
Delta plans to reinvest $5.5 billion in the business this year while continuing to deleverage. The balance sheet looks healthier than at any point since pre-pandemic: gross leverage around 2x compares to peak debt levels above 7x in 2020.
Reading the Consumer
Delta's results are a window into consumer health, and the view is positive. Air travel is discretionary spending, particularly for the premium seats Delta emphasizes. Continued strength suggests households—at least those with means—remain willing to spend.
That's consistent with what JPMorgan's Jamie Dimon said this morning about consumer resilience. Credit card spending data from the banks and travel demand from the airlines are telling the same story: the consumer isn't cracking.
For traders, Delta's pullback may represent an opportunity. The guidance beat expectations, the backlog is healthy, and management is confident enough to order more planes. The 4% drop looks like profit-taking after an extended run rather than a fundamental reassessment.
United and American report in coming weeks. If they echo Delta's optimism, the airline trade could have legs into the spring travel booking season.