How did Delta perform in the December 2025 quarter?

Delta reported GAAP operating revenue of $16.0 billion, up 3% from $15.6 billion, and operating income of $1.5 billion with a 9.2% operating margin, compared with $1.7 billion and 11.0% a year earlier. GAAP diluted EPS was $1.86, up from $1.29. On a non-GAAP basis, EPS was $1.55 versus $1.85 a year earlier, and operating cash flow was $2.3 billion on a GAAP basis. The filing notes that revenue growth was impacted by about 2 points from the government shutdown, largely in Domestic.

What guidance did Delta give for 2026?

For full-year 2026, Delta guided to non-GAAP EPS of $6.50 to $7.50, described as 20% year-over-year growth at the midpoint, and free cash flow of $3 billion to $4 billion. It expects gross leverage of approximately 2x and a long-term target of 1x. It also expects non-fuel unit cost growth in line with its long-term framework of up low-single digits, and capacity growth of approximately 3%. For the March 2026 quarter, it expects total revenue up 5% to 7%, an operating margin of 4.5% to 6%, and EPS of $0.50 to $0.90.

How is Delta changing its reporting of MRO and other metrics?

Beginning in 2026, Delta will report its third-party Maintenance, Repair and Overhaul (MRO) business as a separate revenue and expense line item, rather than within Ancillary businesses and refinery. Delta will also exclude MRO expense from its adjusted non-fuel unit cost (CASM-Ex) metric. Certain loyalty-related revenue streams will be reclassified into the Loyalty program line. The supplemental information states MRO revenue grew 25% in 2025 to $826 million, and that 2026 MRO revenue is expected to grow more than 20%.

How strong is Delta's balance sheet and liquidity?

At year end 2025, Delta reported total debt and finance lease obligations of $14.1 billion, down from $16.2 billion, and adjusted net debt of $14.3 billion, a reduction of $3.7 billion from the end of 2024. The weighted average interest rate was 4.3%, with 95% fixed-rate debt. Liquidity was $7.4 billion at quarter end, including $3.1 billion of undrawn revolver capacity, and cash and cash equivalents were $4.3 billion. Air traffic liability was $7.2 billion. Management described the company as having its strongest balance sheet and highest credit quality in its history.

DAL 8-K: Earnings & Results & Material Agreements

01—Abstract

Summary

Summary of the 8-K filed January 13, 2026. Cited figures are marked; the original filing is the authoritative source.

Delta Air Lines, Inc. (NYSE: DAL) filed an 8-K on January 13, 2026 furnishing its results for the December quarter and full year 2025 (Exhibit 99.1 press release and Exhibit 99.2 supplemental information) and disclosing a material agreement with The Boeing Company.

For the December quarter 2025, GAAP operating revenue was $16.0 billion^a, operating income was $1.5 billion (9.2% margin), and diluted EPS was $1.86. For full year 2025, GAAP operating revenue was $63.4 billion, operating income was $5.8 billion (9.2% margin), pre-tax income was $6.2 billion, and diluted EPS was $7.66. Non-GAAP full-year diluted EPS was $5.82, with free cash flow of $4.6 billion, adjusted debt to EBITDAR of 2.4x, and return on invested capital of 12.0%.

Total debt and finance lease obligations were $14.1 billion^b at year end, down from $16.2 billion a year earlier. Management guided to full-year 2026 GAAP-free non-GAAP EPS of $6.50 to $7.50, described as 20% growth at the midpoint, and free cash flow of $3 billion to $4 billion. For the March 2026 quarter, it guided to total revenue growth of 5% to 7% year over year, an operating margin of 4.5% to 6%, and EPS of $0.50 to $0.90.

Management also said MRO will now be reported separately and excluded from the non-fuel unit cost metric, and that MRO revenue grew 25%^c in 2025 with 2026 growth expected above 20%. Separately, Delta agreed on January 12, 2026 to acquire 30 Boeing 787-10 aircraft, with an option for 30 more, with deliveries beginning in 2031. The filing states the order is within Delta's previously announced capital expenditure and capacity targets and that long-term financing has been obtained for a substantial portion of the purchase price of each aircraft.

02—Key points

Key Highlights

Q4 2025 GAAP operating revenue of $16.0 billion (up from $15.6 billion), operating income of $1.5 billion, and diluted EPS of $1.86 versus $1.29 a year earlier.
Full-year 2025 GAAP operating revenue of $63.4 billion, up from $61.6 billion, with net income of $5.0 billion and diluted EPS of $7.66 versus $5.33 in 2024.
Non-GAAP full-year 2025 diluted EPS of $5.82, operating cash flow of $8.3 billion, and free cash flow of $4.6 billion after $4.3 billion of reinvestment.
Balance sheet improvement: total debt and finance lease obligations fell to $14.1 billion from $16.2 billion, and adjusted debt to EBITDAR improved to 2.4x from 2.6x.
2026 guidance: non-GAAP EPS of $6.50 to $7.50 (20% growth at midpoint), free cash flow of $3 billion to $4 billion, and approximately 2x gross leverage.
March 2026 quarter outlook: total revenue up 5% to 7% year over year, operating margin of 4.5% to 6%, and EPS of $0.50 to $0.90.
Fleet agreement with Boeing for 30 787-10 aircraft with options for 30 more, deliveries starting in 2031, with long-term financing obtained for a substantial portion of the purchase price.

03—Questions

Frequently Asked Questions

How did Delta perform in the December 2025 quarter?
Delta reported GAAP operating revenue of $16.0 billion, up 3% from $15.6 billion, and operating income of $1.5 billion with a 9.2% operating margin, compared with $1.7 billion and 11.0% a year earlier. GAAP diluted EPS was $1.86, up from $1.29. On a non-GAAP basis, EPS was $1.55 versus $1.85 a year earlier, and operating cash flow was $2.3 billion on a GAAP basis. The filing notes that revenue growth was impacted by about 2 points from the government shutdown, largely in Domestic.
What guidance did Delta give for 2026?
For full-year 2026, Delta guided to non-GAAP EPS of $6.50 to $7.50, described as 20% year-over-year growth at the midpoint, and free cash flow of $3 billion to $4 billion. It expects gross leverage of approximately 2x and a long-term target of 1x. It also expects non-fuel unit cost growth in line with its long-term framework of up low-single digits, and capacity growth of approximately 3%. For the March 2026 quarter, it expects total revenue up 5% to 7%, an operating margin of 4.5% to 6%, and EPS of $0.50 to $0.90.
What is the Boeing agreement and what does it mean for Delta?
On January 12, 2026, Delta entered into a definitive agreement with The Boeing Company to acquire 30 Boeing 787-10 aircraft, with an option to purchase up to 30 more. The aircraft will include GEnx engines from General Electric and will begin delivery in 2031. The filing states the order is within Delta's previously announced capital expenditure and capacity targets, and that Delta has obtained long-term financing for a substantial portion of the purchase price of each aircraft. Management describes the aircraft as supporting long-haul and international growth and replacing less efficient, older aircraft.
How is Delta changing its reporting of MRO and other metrics?
Beginning in 2026, Delta will report its third-party Maintenance, Repair and Overhaul (MRO) business as a separate revenue and expense line item, rather than within Ancillary businesses and refinery. Delta will also exclude MRO expense from its adjusted non-fuel unit cost (CASM-Ex) metric. Certain loyalty-related revenue streams will be reclassified into the Loyalty program line. The supplemental information states MRO revenue grew 25% in 2025 to $826 million, and that 2026 MRO revenue is expected to grow more than 20%.
How strong is Delta's balance sheet and liquidity?
At year end 2025, Delta reported total debt and finance lease obligations of $14.1 billion, down from $16.2 billion, and adjusted net debt of $14.3 billion, a reduction of $3.7 billion from the end of 2024. The weighted average interest rate was 4.3%, with 95% fixed-rate debt. Liquidity was $7.4 billion at quarter end, including $3.1 billion of undrawn revolver capacity, and cash and cash equivalents were $4.3 billion. Air traffic liability was $7.2 billion. Management described the company as having its strongest balance sheet and highest credit quality in its history.

04—Continue

← View all 8-K filings