Delta Air Lines has continued to lead the charge in US airline performance with strong full-year and fourth-quarter 2025 earnings, driven by continued demand for its premium products.
Full-year adjusted earnings per share totalled $5.82, slightly down from $6.16 per share in the previous year. Net income was $3.8bn, down slightly from $4bn a year prior.
For the full year, adjusted operating revenues totalled $58.3bn, up from $57bn a year prior. Operating expenses were up from $51bn in 2024 to $52.5bn in 2025.
The strong performance came amid a year that had “some very choppy points” — what with economic uncertainties stemming from a US-led tariff conflict at the start of the year. In early April, Delta had withdrawn its 2025 outlook amid the “uncertainty” at the time, before restoring it in the summer.
“As we got to the latter part of the first quarter and into the second quarter, the tariff and economic uncertainties hit a crescendo,” management said. “This gives us confidence that 2026 is going to be a great year.”
Adjusted premium revenue grew 7% in the full year, while loyalty revenue climbed 6%. Premium sales grew 9.1% in the fourth quarter.
The airline’s premium performance has fuelled its guidance for full-year 2026. The company expects adjusted earnings per share (EPS) for 2026 to be between $6.50 and $7.50, increasing 20% at the mid-point compared to 2025.
During its earnings call, the company said “we have not really seen main cabin move yet” in terms of revenue. They said that the higher end of its 2026 guidance reflects main cabin’s performance “starting to move”. Main cabin demand fell 7% in the fourth quarter.
“Main cabin will move in 2026, we just haven’t seen it yet,” management said in the call.
On the same day as its results, the airline disclosed an order for up to 60 787-10 Dreamliner aircraft, including 30 firm and 30 options. This marks the airline’s first direct order for this aircraft type. During its earnings call, management noted it as a “natural evolution” for its fleet.
“Our priorities up until this point were to get critical mass into the A350 and the A330 and we’re well on our way to do that,” management said. “That drives great efficiency which is needed in the widebody category. The 787 is a financially great airplane and we’re able to do a lot with the 787-10 variant on the premium seating. It’s a great cargo airplane and it also drives diversification within our fleet, not only on the airframe but on the engine side too.”
TD Cowen analyst Tom Fitzgerald said the 787 will “provide nice optionality” to Delta’s long-haul fleet.
The order will support its fleet expansion and modernisation — supporting its high-demand transatlantic and South American routes, which see high demand for its premium product.
During its earnings call, Delta management noted that its transatlantic and Pacific resilience has come from “years of building the domestic network to have that strong foundation to launch from”.
“You take the loyalty of cities such as New York, LA, Boston and new gateways we’re able to expand with, then you layer on top of that new airplanes and being able to monetise that premium cabin,” said management. “There is a lot coming together and the order for the 787 is just another future marker out there for innovation.
“In the widebody space, fleet efficiency is really what wins the day. Taking a 767 and replacing it with an Airbus A350 or a Boeing 787 drives better product and drives an incremental margin.”
In January 2024, Delta ordered up to 40 Airbus A350-1000 widebody jets – consisting of 20 firm and 20 options. Deliveries are expected to commence this year.
“Delta is building the fleet for the future, enhancing the customer experience, driving operational improvements and providing steady replacements for less efficient, older aircraft in the decade to come,” said Delta CEO Ed Bastian.
Delta added that the order will complement its narrowbody order for 100 Boeing 737 MAX 10 where deliveries are expected to commence upon certification.
Deliveries for the 787s are expected to begin in 2031.
Co-brand credit card remuneration has continued to prove a strong driver for Delta’s performance. American Express remuneration in 2025 grew 11% to $8.2bn, driven by double-digit growth in co-brand spend over each quarter throughout the year. Over a million card acquisitions were recorded for the fourth consecutive year.
For full-year 2026, the company expects a free cash flow of between $3 and $4bn and a gross leverage of around 2x.
First-quarter 2026 revenues are expected to be up 5-7% on the same period a year prior. Operating margin is expected to be 4.5% to 6%. Earnings are forecast to be between 50 and 90 cents per share.
“2026 is off to a strong start with top-line growth accelerating on consumer and corporate demand,” said Bastian.
Delta’s fourth quarter saw adjusted revenues climb to $14.6bn in 2025, up from $14.4bn a year prior. Operating expenses in the quarter totalled $13.1bn, up from $12.7bn.
As of the end of the year, adjusted debt to EBITDAR was 2.4x.