01—Abstract
Summary
Summary of the 10-Q filed October 9, 2026. Cited figures are marked; the original filing is the authoritative source.
Delta Air Lines, Inc. reported operating income of $1.45 billiona for the three months ended September 30, 2026, a decrease of $230 million from the prior-year quarter, on total operating revenue of $20.19 billion (up from $16.67 billion).
Net income was $756 millionb, or $1.15 per diluted share, compared with $1.417 billion, or $2.17 per diluted share, a year earlier. Results were pressured by a 63% increase in average jet fuel purchase price and by $218 million of losses on investments, while passenger revenue grew 15% on broad-based demand across premium, main cabin and loyalty. Nine-month net income was $2.07 billion, or $3.15 per diluted share, versus $3.79 billion, or $5.80 per diluted share, in the prior-year period.
Revenue growth was also supported by third-party refinery sales, which rose $1.1 billionc in the quarter, and by higher loyalty and related revenue, which increased 19% driven by American Express card spending. The Monroe refinery posted an operating loss of $33 million in the quarter after a temporary outage beginning in mid-June 2026; the company expects a return to profitability in the December 2026 quarter. Cash flow from operations for the nine months was $5.74 billion, and free cash flow for the September quarter was $463 million (a non-GAAP measure).
Liquidity was $6.9 billiond at September 30, 2026, including about $3.1 billion undrawn under revolving credit facilities. Balance sheet activity included debt and finance lease payments of $3.3 billion in the nine months, of which $2.3 billion were early repayments, and total debt declining to $12.1 billion from $13.3 billion at year-end 2025. Aircraft purchase commitments totaled approximately $26.7 billion, and the company approved a quarterly dividend of $0.2150 per share payable November 5, 2026.
02—Key points
Key Highlights
- Operating income of $1.45 billion in the September 2026 quarter, down $230 million from $1.68 billion a year earlier, while operating revenue rose 21% to $20.19 billion.
- Net income of $756 million ($1.15 per diluted share) versus $1.42 billion ($2.17 per diluted share) in the prior-year quarter; non-operating expense of $380 million included $218 million of investment losses.
- Aircraft fuel and related taxes rose $1.78 billion to $4.35 billion, driven by a 63% increase in average jet fuel purchase price; CASM rose 25% while CASM-Ex rose 7.3%.
- Passenger revenue grew 15% to $15.53 billion on broad-based demand, with domestic passenger revenue up 16% on flat capacity; loyalty travel awards revenue rose 18%.
- Refinery operating loss of $33 million in the quarter after a mid-June 2026 outage; third-party refinery sales increased $1.13 billion to $2.60 billion.
- Free cash flow of $463 million in the quarter; nine-month operating cash flow of $5.74 billion, down from $6.08 billion.
- Debt reduced to $12.1 billion from $13.3 billion at year-end 2025, with $3.3 billion of nine-month debt payments and $6.9 billion of total liquidity at September 30, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 9, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $20.19B$16.67B | +21.1% |
| Operating Expenses | $18.73B$14.99B | +25.0% |
| Operating Income | $1.45B$1.68B | −13.7% |
| Net Income | $756.00M$1.42B | −46.6% |
| EPS (Basic) | $1.15$2.18 | −47.2% |
| EPS (Diluted) | $1.15$2.17 | −47.0% |
| Shares Outstanding (Basic) | 655.00M649.00M | +0.9% |
| Shares Outstanding (Diluted) | 659.00M654.00M | +0.8% |
05—Questions
Frequently Asked Questions
Why did operating income decline despite strong revenue growth?
Total operating expense rose $3.74 billion, or 25%, to $18.73 billion, primarily due to higher aircraft fuel costs, expenses related to third-party refinery sales, and salaries and related costs. Aircraft fuel and related taxes alone increased $1.78 billion, reflecting a 63% increase in average jet fuel purchase price.
How did the refinery segment perform and what is the outlook?
The refinery posted an operating loss of $33 million in the September 2026 quarter, compared with operating income of $53 million a year earlier, due to crude price volatility and a temporary outage that halted production beginning in mid-June 2026. The company stated the refinery operated at normal production levels by quarter-end and expects a return to profitability in the December 2026 quarter.
What drove the decline in net income and earnings per share?
Non-operating expense was $380 million versus income of $93 million a year earlier, primarily due to mark-to-market losses on certain equity investments. Net income fell to $756 million from $1.42 billion, and diluted earnings per share were $1.15 compared with $2.17.
What is the company's liquidity and debt position?
Liquidity, defined as cash, cash equivalents, short-term investments and undrawn revolving credit facilities, was $6.9 billion at September 30, 2026, including about $3.1 billion undrawn under revolving facilities. Total debt was $12.1 billion, down from $13.3 billion at December 31, 2025, and the company was in compliance with its debt covenants.
What are the capital return and capital spending plans?
The Board approved a quarterly dividend of $0.2150 per share, payable November 5, 2026 to holders of record on October 15, 2026. Capital expenditures were $4.1 billion for the nine months, and 2026 capital spend is expected to exceed $5 billion. Aircraft purchase commitments totaled approximately $26.7 billion at September 30, 2026. A $1.0 billion opportunistic share repurchase program is authorized through June 30, 2028, but no shares have been repurchased under it.
06—Continue