Management commentary
Strength of results and outlook demonstrate Delta’s structural durability in high fuel cost environment
Results
Record September quarter revenue on broad demand strength and healthy yield growth
Outlook
3Expect continued momentum in December quarter with revenue expected to grow approximately 20 percent
Outlook for full-year EPS of $5.10 to $5.60 and free cash flow of approximately $2.5 billion
Management commentary
with a double-digit return on invested capital
Outlook
6Strengthening investment-grade balance sheet with plan to pay down more than $2 billion of debt in 2026
Management commentary
“Demand remains strong, supported by consumers’ growing preference for experiences and travel, with air travel continuing to be one of the best values in the consumer economy.
Against this backdrop, we delivered September quarter pre-tax profit of $1.5 billion, matching last year's performance, and generated $1.9 billion of free cash flow year-to-date.
Our resilience reflects the structural durability we’ve built over many years, enabling us to effectively navigate one of the most elevated fuel environments in recent times.
The foundation of that resilience is our people, whose commitment to delivering for our customers continues to set Delta apart," said Ed Bastian, Delta’s chief executive officer.
Outlook
4"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.
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."Guidance reaffirmed
Results
September Quarter 2026 GAAP Financial Results
Operating revenue of $20.2 billion
Operating income of $1.5 billion with an operating margin of 7.2 percent
Pre-tax income of $1.1 billion with a pre-tax margin of 5.3 percent
Earnings per share of $1.15
Operating cash flow of $1.7 billion
September Quarter 2026 Non-GAAP Financial Results
Operating revenue of $17.6 billion
Operating income of $1.7 billion with an operating margin of 9.4 percent
Pre-tax income of $1.5 billion with a pre-tax margin of 8.5 percent
Earnings per share of $1.72
Operating cash flow of $1.7 billion
Total Revenue YoY (%)Approx.
20%Earnings Per Share$5.10 - $5.60
Outlook
Operating Margin7% - 9%Free Cash Flow ($B)Approx. $2.5
Earnings Per Share$1.15 - $1.65Gross Leverage 2Approx.
Guidance for the December quarter assumes fuel at the forward curve as of October 2, 2026, and includes a refinery benefit of approximately $0.40 per gallon.
This results in a projected all-in fuel price for the quarter of approximately $4.25 per gallon.
Revenue Environment and Outlook
Management commentary
"September quarter revenue grew approximately 16 percent over prior year, on flat capacity, driven by broad demand strength and healthy yield growth as we cover higher costs and manage the business for margins,” said Joe Esposito, Delta’s chief commercial officer.
Outlook
“Revenue momentum is continuing in the December quarter, with strength across all products and geographies, supporting our outlook for total revenue growth of approximately 20 percent over last year.Guidance reaffirmed
With seats growing less than 2 percent, including a reduction in Main Cabin seats, our capacity positioning supports another quarter of sequential improvement in unit revenue with progression in both Domestic and International.”
Results
Broad demand strength continued in the September quarter: Delta delivered record September quarter total revenue of $17.6 billion, increasing 16 percent over the same period last year.
Adjusted total unit revenue (TRASM) grew 15 percent over prior year, accelerating 3 points from the prior quarter.
Main cabin unit revenue grew 17 percent over prior year on seats down low-single digits, marking another quarter of sequential progress.
Strong revenue performance across all geographies: Domestic unit revenue grew 16 percent year-over-year on strong yields and a load factor that was 1 point higher than last year, reflecting the strength of Delta's brand and a measured approach to capacity.
I nternational unit revenue increased 12 percent, with performance led by Latin where unit revenue improved 22 percent over last year.
2Transatlantic unit revenue growth improved 4 points sequentially to 11 percent year-over-year.
Transpacific revenue grew 13 percent over prior year on 8 percent higher capacity, supporting profitable growth through new routes to Asia.
Continued momentum in diversified, high-margin revenue streams: Diverse revenue streams accounted for 61 percent of total revenue in the September quarter.
Premium revenue grew 18 percent year-over-year with double-digit unit revenue growth driven by yield and load factor on a 6 percent increase in seats.
Cargo revenue increased 29 percent year-over-year, with roughly equal growth between volume and yield.
MRO revenue grew 28 percent year-over-year, bringing year-to-date revenue to $990 million.
Growing member engagement across loyalty ecosystem: Total loyalty revenue grew 18 percent, with SkyMiles member engagement continuing to deepen in the air and beyond the flight.
Co-brand card acquisitions and spend both grew double-digits, the eighth consecutive quarter of double-digit growth in cardholder spend.
7This momentum supported 15 percent growth in American Express remuneration in the quarter, positioning the full year to exceed $9 billion.
Travel products and non-air partnership revenue increased 25 percent year-over-year.
Outlook
Corporate sales 3 grew double-digits in all sectors: Corporate sales growth was led by the Banking, Technology, and Energy sectors, with particularly strong performance in Boston and Los Angeles.
Recent corporate survey results indicate over 90 percent of respondents expect their corporate travel will increase or stay the same in 2027.
Cost Performance and Outlook
5"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.
In the December quarter, we expect earnings of $1.15 to $1.65 per share, based on a fuel price of approximately $4.25 per gallon.
This positions earnings consistent with last year at the upper end of the range," said Erik Snell, Delta’s chief financial officer.Guidance reaffirmed
"The Delta team continues to deliver for our customers, widening our industry lead in on-time performance and achieving record baggage results.
September quarter non-fuel unit costs increased 7.3 percent over the prior year on flat capacity, driven primarily by higher crew and revenue-related costs on capacity growth that was several points below our original plan, including nearly one point of impact from summer storms.
8With slightly higher capacity and continued operational efficiencies, we expect December quarter non-fuel unit cost growth to improve 1 to 2 points sequentially.
Looking to next year, we remain on track for low-single-digit unit cost growth as capacity normalizes, operational improvements continue and we lap higher costs in our baseline."Guidance reaffirmed
Results
September Quarter 2026 Cost Performance
Operating expense of $18.7 billion and adjusted operating expense of $15.9 billion
Adjusted non-fuel costs of $11.1 billion
Non-fuel CASM was 14.03¢, an increase of 7.3 percent year-over-year
Adjusted fuel expense of $4.1 billion was up 62 percent year-over-year
Adjusted fuel price of $3.61 per gallon increased 60 percent year-over-year with a refinery benefit of 13¢ per gallon
Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.5
Balance Sheet, Cash and Liquidity
Outlook
"We generated $463 million of free cash flow in the September quarter.
The strength of our cash flow generation allows us to consistently reinvest to compound our advantages while reinforcing our investment grade balance sheet.
1For the full year, we expect to deliver free cash flow of approximately $2.5 billion and pay down more than $2 billion of debt, positioning us to end the year with gross leverage of approximately 2.2x,” Snell said.
Results
Adjusted net debt of $13.4 billion at September quarter end, a reduction of $950 million from the end of 2025
Payments on debt and finance lease obligations for the September quarter of $1.2 billion
Adjusted operating cash flow in the September quarter of $1.7 billion, and with gross capital expenditures of $1.4 billion, free cash flow was $463 million
Air Traffic Liability ended the qu arter at $9.6 billion
Liquidity 1 of $6.9 billion at quarter-end, including $3.1 billion in undrawn revolver capacity
September Quarter 2026 Highlights
Operations, Network, and Fleet
Led all carriers 1 in on-time arrival and departure performance for the quarter.
Set a Delta September quarter record 2 for Domestic mishandled baggage rate (MBR).
Took delivery of 13 aircraft in the quarter, including A350-900, A321neo, and A220-300 aircraft.
Corporate events
Announced new international service from Seattle to Tokyo-Narita, Los Angeles to Manila, Austin to Paris-Charles de Gaulle, Detroit to Athens, and Boston to Venice, with flights beginning in 2027, while extending seasonal service on select Transatlantic routes.
Expanded position in Los Angeles with announcement of largest-ever schedule, with new and increased service to multiple U.S. destinations.
Management commentary
Culture and People
Recognized by customers for the fifth consecutive year with the award for Best Airline Staff Service in North America at the Skytrax World Airline Awards.
Results
Accrued nearly $900 million in profit sharing year-to-date toward next February's payout.
Management commentary
Named to TIME's America's Best Companies list, the only airline in the top 100.
Ranked No. 1 on PEOPLE's Companies That Care list, the only airline recognized.
Corporate events
Contributed $100,000 to American Red Cross earthquake relief efforts in Colombia.
Established the Chief Data Officer position, welcoming Ramnik Bajaj to advance Delta’s data and AI capabilities, accelerate innovation, and enhance decision-making, unlocking new opportunities for Delta.
Management commentary
Customer Experience and Loyalty
Corporate events
Announced a strategic relationship with Hyatt, expanding the SkyMiles loyalty ecosystem with another category-leading premium brand.
Management commentary
JD Power ranked the Delta SkyMiles Reserve, Platinum, and Gold American Express Cards in the top three, respectively, for airline co-brand card customer satisfaction in 2026.
Accelerated co-brand card acquisitions, driven by innovative card offers, such as two round-trip Delta Comfort tickets and Delta's highest-ever introductory mileage offer for new Reserve Card sign-ups.
Results
Active SkyMiles member base continued to grow, led by Gen Z and millennials, with outsized growth in focus cities and coastal hubs.
Management commentary
Enhanced long-standing partnership with Starbucks with more ways for SkyMiles members to earn rewards.
Continued rollout of fast, free Wi-Fi for SkyMiles members across nearly all of Delta's fleet with recent satellite upgrades expected to provide meaningful enhancements to connectivity.
Corporate events
Completed rollout of Delta Concierge, our AI-powered digital assistant, to all SkyMiles members.
Expanded Delta Sync experiences and offers through new partnerships with DraftKings and Sport 24.
Announced a reimagined Delta One wine program featuring a curated selection of wines from Napa Valley and destinations across Delta's global network, supported by Delta's Sky Sommelier program.
Management commentary
Environmental Sustainability
Corporate events
Expanded SAF access through a multi-airport agreement with Shell Aviation.
Completed a new SAF blending facility at Flint Hills Resources' Pine Bend Refinery, expanding SAF availability at Delta's second-largest hub in Minneapolis-St. Paul.
Joined the launch of the Georgia Sustainable Aviation Fuel (SAF) Coalition as a founding member.
Launched a partnership with the National Park Foundation to support conservation across America's national parks.
Results
September Quarter 2026 Results
September quarter results have been adjusted primarily for third-party refinery sales, gains/losses on investments and Monroe hedge results as described in the reconciliations in Note A.
Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by Cirium for being the top on-time airline in North America for the fifth consecutive year.
Management commentary
We remain committed to ensuring that the future of travel is connected, personalized and enjoyable.
Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.
51 boilerplate lines (safe-harbor disclaimer, contacts, call details) are set aside.