DELTA AIR LINES (DAL) Company Report

Delta Air Lines incurred a $200 million pre-tax profit loss (≈$0.25 per share) due to the 43-day U.S. government shutdown.
The shutdown forced over 2,000 flight cancellations and mandated cuts at 40 major airports, slowing holiday bookings.
Despite the disruption, travel demand is healthy, with bookings returning to expected levels into early 2026.
Key metrics include $62.92 billion in revenue, 9.65% operating margin, 7.36% net margin, and an Altman Z-Score of 1.44 indicating financial distress risk.

Dec 3, 2025, 3:33 PM

WSJ

Delta outlines 2025 performance and strategic roadmap at Morgan Stanley consumer conference

DAL

Approximately $5 billion in 2025 profits, with industry ex-Delta profits down 40% versus a flat Delta; Q4 incurred a $200 million ($0.25/share) impact from the government shutdown, now deemed transitory as holiday bookings recover strongly.
Emphasizing consistent premiumization, Delta has built differentiation over 15 years through initiatives like free high-speed Wi-Fi on 1,000 aircraft and Delta One lounges, alongside exclusive partnerships with American Express, Uber and Starbucks to enhance loyalty.
Delivered ~$4 billion of free cash flow in 2025 (targeting $3–5 billion annually), with the bulk allocated to debt reduction; plans to lower net debt to $10 billion within two years to establish a “Fortress Balance Sheet” and drive valuation expansion.
Outlook remains constructive: affluent consumers continue to prioritize travel, business volumes sit ~30% below 2019 but are expected to recover, while pricing stays strong and premium travel trends are viewed as structural.

Dec 3, 2025, 1:45 PM

Transcript

Delta highlights resilience and premium strategy at Morgan Stanley Global Consumer & Retail Conference 2025

DAL

Delta expects roughly $5 billion in 2025 profits, flat year-over-year versus an industry decline of 40% ex-Delta; a $200 million (≈$0.25 EPS) impact from the November government shutdown weighed on Q4 domestic bookings.
The airline generated approx. $4 billion of free cash flow in 2025 (guidance $3–5 billion) and plans to allocate the majority to debt paydown, targeting net debt of ≤$10 billion within two years to establish a “Fortress Balance Sheet”.
Delta’s consistent premium product investments include certifying its 1,000th aircraft with free, high-speed Wi-Fi (surpassing Starlink’s in-service fleet) and expanding the Delta One lounge and experience.
The American Express co-brand partnership drives $8 billion in revenue in 2025 (up from $4 billion in 2019), with management targeting $10 billion in the next 2–3 years and 30% of U.S. consumer spend on AmEx.
Business travel demand remains a priority, with current volumes about 30% below 2019 levels but pricing strong; Delta ranked #1 in Business Travel News for the 15th consecutive year, and growth in corporate bookings is expected to continue.

Dec 3, 2025, 1:45 PM

Transcript

Delta Air Lines highlights resilient 2025 performance and strategic differentiation

DAL

2025 profits ~$5 billion, flat vs prior year while industry ex-Delta declines ~40%; Q4 incurred a $200 million (≈$0.25/share) domestic-only headwind from the government shutdown, deemed transitory.
Free cash flow of $4 billion in 2025 funding debt reduction; targeting net debt ≤$10 billion within two years to build a “Fortress Balance Sheet”.
Premiumization and consistency: 1,000 jets now offer free, fast Wi-Fi, Delta One and lounge experiences enhance loyalty; Delta holds ~20% seat share but generates >50% of industry profits.
AmEx co-brand partnership revenue has grown from $2 billion in 2014 to $8 billion in 2025, expected to approach $10 billion in 2–3 years, complemented by alliances with Starbucks, Uber and YouTube.

Dec 3, 2025, 1:45 PM

Transcript

Delta expects premium ticket sales to surpass main cabin in 2026

DAL

Earnings

Revenue Acceleration/Inflection

Guidance Update

Delta reported Q3 2025 net income of $1.42 billion and raised its operating margin to 10.1% from 8.9% a year earlier.
Premium-cabin ticket revenue increased 9% to about $5.8 billion, while main-cabin revenue declined 4% to $6 billion, contributing to $16.7 billion in operating revenue.
Management said premium fares are on track to overtake main-cabin sales by 2026, reflecting a long-term shift toward higher-margin travel.
Corporate-contract sales rose 8%, and co-branded card revenue remained strong, underpinning the premium-segment growth.
Full-year adjusted EPS guidance is pegged near $6 per share.

Oct 9, 2025, 6:49 PM

Morningstar

Delta Air Lines reports Q3 2025 results

DAL

Earnings

Guidance Update

Delta delivered record Q3 revenue of $15.2 billion, up 4.1% YoY, with earnings of $1.71 per share, an 11.2% operating margin, and free cash flow of $830 million.
High-margin streams drove growth: premium revenue +9%, loyalty +9%, cargo +19%, and MRO +60%, with diversified revenues accounting for 60% of total.
For Q4, management forecasts revenue growth of 2–4%, positive unit revenues, earnings per share of $1.60–1.90, and an operating margin of 10.5–12%; full-year EPS is pegged at ∼$6.00 with free cash flow of $3.5–4 billion.
Cost discipline and liquidity strength: non-fuel unit cost growth flat, YTD under 2%, operating cash flow of $1.8 billion, debt paydown of ~$2 billion, leverage at 2.4x, and a 225 bp term-loan repricing.

Oct 9, 2025, 2:00 PM

Transcript

Delta Air Lines announces Q3 2025 results

DAL

Earnings

Guidance Update

Record September quarter revenue: GAAP operating revenue of $16.7 billion with operating income of $1.7 billion (10.1% margin) and EPS of $2.17; Non-GAAP revenue of $15.2 billion, margin 11.2%, EPS $1.71.
Diversified revenue growth: Non-GAAP revenue up 4.1% YoY to $15.2 billion; premium products and loyalty each grew 9%, and American Express remuneration grew 12%.
Controlled costs and strong liquidity: Adjusted non-fuel CASM flat at 13.35 cents, adjusted fuel expense down 8%; YTD debt paydown of ~$2 billion, gross leverage at 2.4x, liquidity of $6.9 billion.
Outlook: Q4 operating margin 10.5–12% with EPS of $1.60–$1.90; full-year adjusted EPS ~$6, and free cash flow forecast $3.5–$4 billion.

Oct 9, 2025, 10:30 AM

8-K

Delta Air Lines announces September quarter 2025 results

DAL

Earnings

Guidance Update

Achieved GAAP operating revenue of $16.7 billion, operating income of $1.7 billion (10.1% margin) and EPS of $2.17 in 3Q25
Reported non-GAAP operating revenue of $15.2 billion, 11.2% adjusted operating margin and adjusted EPS of $1.71
Issued guidance for 4Q25 with 10.5–12% operating margin and $1.60–$1.90 adjusted EPS, and reiterated full-year adjusted EPS of ~$6 and $3.5–$4 billion free cash flow
Reduced leverage to 2.4x adjusted debt/EBITDAR and ended the quarter with $6.9 billion liquidity after paying down nearly $2 billion in debt YTD

Oct 9, 2025, 10:30 AM

Press Release

Delta Air Lines at Morgan Stanley’s 13th Annual Laguna Conference

DAL

Guidance Update

Delta reports strong domestic corporate demand and high-yield leisure bookings, posting its highest post-pandemic corporate sales in any day/week this September, with domestic unit revenues inflecting positive into the fall.
The airline has rationalized domestic capacity, boosting pricing power and TSA throughput; internationally, Transatlantic main cabin underperformed (though still profitable), while Premium unit revenues led across all regions.
Delta’s loyalty program and co-brand spend reached record remuneration levels, driven by upper-income cohorts, underscoring its diversified revenue mix beyond main cabin fares.
Management reconfirmed on-track delivery of double-digit margins and returns, and expects $3 billion–$4 billion in free cash flow for 2025, while continuing to strengthen its investment-grade balance sheet.

Sep 11, 2025, 2:45 PM

Transcript

Delta Air Lines updates demand outlook at Laguna Conference

DAL

Guidance Update

Revenue Acceleration/Inflection

Delta sees strong domestic corporate and high-yield leisure demand, with domestic travel inflecting to positive early in the quarter and its highest post-pandemic corporate sales days in September.
It raised its revenue guidance to the high end of the previously provided range while maintaining full-year EPS guidance, reflecting confidence in demand amid modest cost pressures.
Revenue diversification is progressing, with over 50% of revenue now from premium products, ancillaries, and loyalty; premium seat capacity is set to hit a record level in 2026.
The airline continues capacity rationalization, trimming off-peak main cabin supply to better align with demand and support margin improvement.

Sep 11, 2025, 2:45 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for DELTA AIR LINES.

Q3 2025

Oct 9, 2025

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Q2 2025

Jul 10, 2025

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Q1 2025

Apr 9, 2025

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View All Transcripts

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DELTA AIR LINES (DAL)

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