01—Abstract
Summary
Summary of the 10-Q filed April 8, 2026. Cited figures are marked; the original filing is the authoritative source.
Delta Air Lines, Inc. reported operating income of $501 milliona for the three months ended March 31, 2026, down $68 million from the prior-year quarter, on total operating revenue of $15.85 billion (up from $14.04 billion).
Total operating expense rose $1.88 billion to $15.35 billionb, driven by refinery expense tied to third-party refinery sales, salaries and related costs, and aircraft fuel. The company posted a net loss of $289 million, or $0.44 per diluted share, versus net income of $240 million, or $0.37 per share, a year earlier. The swing was primarily due to a $550 million loss on investments, net, reflecting mark-to-market losses on certain equity investments, and total non-operating expense of $715 million.
Passenger revenue rose $822 million to $12.30 billionc, with premium products and loyalty revenue cited as drivers. Cash flow and liquidity remained solid. Operating activities generated $2.43 billion and free cash flow was $1.23 billion, a non-GAAP measure.
Delta repaid $1.6 billiond of debt and finance leases, including $1.2 billion of early repayments, while total debt fell to $13.24 billion from $13.31 billion. Liquidity, defined as cash, short-term investments and undrawn revolving credit, was $8.1 billion at quarter end. Management expects fuel costs to remain elevated until recent market disruptions and geopolitical events are resolved.
The balance sheet shows total assets of $84.43 billion and stockholders' equity of $20.38 billion. Aircraft purchase commitments totaled approximately $28.5 billion at March 31, 2026, and the company expects 2026 capital spending of approximately $5.5 billion. Delta paid a quarterly dividend of $0.1875 per share and holds a $1.0 billion opportunistic share repurchase authorization, under which no shares had been repurchased as of March 31, 2026.
02—Key points
Key Highlights
- Operating income of $501 million, down $68 million year over year, while total operating revenue rose 13% to $15.85 billion.
- Net loss of $289 million ($0.44 per diluted share) compared with net income of $240 million ($0.37 per share) in the March 2025 quarter, driven by a $550 million loss on investments, net.
- Passenger revenue increased 7% to $12.30 billion, led by premium products, particularly from corporate customers, and higher loyalty revenue.
- Refinery sales to third parties rose $592 million to $1.65 billion, and MRO revenue increased to $380 million from $151 million; these drove much of the revenue growth.
- Operating cash flow of $2.43 billion and free cash flow of $1.23 billion, a non-GAAP measure, with $1.6 billion of debt and finance lease repayments.
- Liquidity of $8.1 billion at March 31, 2026, and total debt of $13.24 billion, down from $13.31 billion at year-end 2025.
- Aircraft purchase commitments of approximately $28.5 billion and expected 2026 capital spending of approximately $5.5 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 8, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $15.85B$14.04B | +12.9% |
| Operating Expenses | $15.35B$13.47B | +14.0% |
| Operating Income | $501.00M$569.00M | −12.0% |
| Net Income | -$289.00M$240.00M | −220.4% |
| EPS (Basic) | $-0.44$0.37 | −218.9% |
| EPS (Diluted) | $-0.44$0.37 | −218.9% |
| Shares Outstanding (Basic) | 652.00M644.00M | +1.2% |
| Shares Outstanding (Diluted) | 652.00M652.00M | 0.0% |
05—Questions
Frequently Asked Questions
Why did Delta report a net loss this quarter after a profit a year earlier?
The main driver was non-operating expense. Delta recorded a $550 million loss on investments, net, mainly from larger mark-to-market losses on certain equity investments, compared with a $40 million loss a year earlier. Total non-operating expense rose to $715 million from $249 million, which turned pre-tax income into a $214 million loss before taxes.
How did operating performance compare with the prior-year quarter?
Operating income fell to $501 million from $569 million. Revenue grew 13% to $15.85 billion, but operating expense rose 14% to $15.35 billion. The filing attributes the expense increase mainly to refinery expense on third-party sales, salaries and related costs, and aircraft fuel, which rose 10% in price per gallon.
What is the outlook for fuel costs and capacity?
Management said the jet fuel cost it experienced in the quarter is expected to continue until recent market disruptions and geopolitical events are resolved. It expects fuel consumption for the rest of 2026 to remain aligned with capacity changes compared with 2025.
How is Delta managing its debt and capital commitments?
Delta repaid $1.6 billion of debt and finance leases in the quarter, including $1.2 billion of early repayments enabled by lower-rate refinancings, and took a $1.25 billion term loan due December 2026. It has about $3.1 billion undrawn on revolving credit facilities, expects 2026 capital spending of about $5.5 billion, and has aircraft purchase commitments of about $28.5 billion.
What did Delta return to shareholders this quarter?
Delta paid cash dividends of $129 million, or $0.1875 per share, on March 19, 2026. Its $1.0 billion opportunistic share repurchase program, open through June 30, 2028, had no repurchases as of March 31, 2026.
06—Continue