Delta Air Lines September quarter revenue rises 21% to $20.2 billion

Delta Air Lines, Inc. (DAL) said Friday its September quarter operating revenue rose 21% to $20.2 billion from $16.7 billion a year earlier. The results were disclosed in a press release furnished to the Securities and Exchange Commission.

Adjusted earnings per share were $1.72, up 1% from $1.70 a year earlier. GAAP earnings per share were $1.15, down 47% from $2.17.

Here's how the company did:

• Earnings per share: $1.15 GAAP vs. $2.17 a year earlier; $1.72 adjusted vs. $1.70
• Revenue: $20.2 billion vs. $16.7 billion a year earlier; $17.6 billion adjusted
• Free cash flow: $463 million vs. $833 million a year earlier

Adjusted revenue grew 16% on flat capacity, the company said, and adjusted total unit revenue rose 15%.

“Revenue momentum is continuing in the December quarter, with strength across all products and geographies,” said Chief Commercial Officer Joe Esposito.

Domestic unit revenue grew 16%, and International unit revenue rose 12%, led by Latin America, where unit revenue improved 22%. Transatlantic unit revenue grew 11%, the company said, and Transpacific revenue grew 13%.

Premium revenue grew 18%, cargo revenue rose 29% and MRO revenue rose 28%. MRO revenue totaled $990 million year to date.

Total loyalty revenue grew 18%. American Express remuneration rose 15% in the quarter, which the company said positions the full year to exceed $9 billion.

Non-fuel unit costs rose 7.3% from a year earlier on flat capacity, to 14.03 cents, the company said. The increase was driven primarily by higher crew and revenue-related costs, and included nearly one point of impact from summer storms.

Adjusted fuel price was $3.61 per gallon, up 60% from a year earlier, with a refinery benefit of 13 cents per gallon. Adjusted fuel expense was $4.1 billion, up 62%.

“Delta delivered earnings of $1.72 per share in the September quarter, in line with last year while absorbing more than $500 million of higher fuel costs compared to our guidance in early July,” said Chief Financial Officer Erik Snell.

For the December quarter, the company expects total revenue to rise approximately 20% from a year earlier and an operating margin of 7% to 9%. It expects earnings per share of $1.15 to $1.65.

The guidance assumes fuel at the forward curve as of Oct. 2, 2026, and includes a refinery benefit of about 40 cents per gallon. The all-in fuel price for the quarter is projected at approximately $4.25 per gallon.

For full-year 2026, the company expects earnings per share of $5.10 to $5.60 and free cash flow of approximately $2.5 billion. It expects gross leverage of approximately 2.2x.

“For the full year, we expect to generate a pre-tax profit of roughly $4.5 billion, absorbing a $6 billion increase in fuel costs,” said CEO Ed Bastian.

GAAP pre-tax income was $1.1 billion, with a pre-tax margin of 5.3%. Adjusted pre-tax income was $1.5 billion, with a margin of 8.5%, compared with 9.7% a year earlier.

Net income was $756 million, down 47% from $1.4 billion a year earlier.

Adjusted net debt was $13.4 billion at quarter end, a reduction of $950 million from the end of 2025. Liquidity was $6.9 billion, including $3.1 billion in undrawn revolver capacity.

The company said it plans to pay down more than $2 billion of debt in 2026. Air traffic liability ended the quarter at $9.6 billion.

Delta led all carriers in on-time arrival and departure performance for the quarter, according to preliminary FlightStats data. It also set a Delta September quarter record for Domestic mishandled baggage rate.

The company took delivery of 13 aircraft in the quarter, including A350-900, A321neo and A220-300 models. It announced international service from Seattle to Tokyo-Narita and Los Angeles to Manila, with flights beginning in 2027.

The company also announced a strategic relationship with Hyatt, expanding the SkyMiles loyalty ecosystem.

The adjusted figures exclude third-party refinery sales, gains and losses on investments, and hedge results related to Monroe Energy, LLC, a wholly owned subsidiary that operates the Trainer refinery. Non-GAAP measures, or figures that omit certain items, are reconciled to GAAP results in the release.

“Looking ahead, our focus remains on profitable growth and delivering against our long-term financial framework, including mid-teens margins and returns, durable free cash flow and gross leverage of approximately one times,” Bastian said.