How did Delta perform in the September 2026 quarter?

On a GAAP basis, operating revenue was $20.19 billion, up 21%, but operating income fell 14% to $1.45 billion and diluted EPS dropped to $1.15 from $2.17. Adjusted for third-party refinery sales, MTM hedge and investment items, and debt extinguishment, EPS was $1.72 versus $1.70 a year earlier, and adjusted operating revenue grew 16% to $17.59 billion.

What is driving the increase in costs?

Fuel is the primary driver. The adjusted average fuel price rose 60% to $3.61 per gallon, and adjusted fuel expense increased 62% to $4.14 billion. Management also cited higher crew and revenue-related costs on capacity growth, plus nearly one point of impact from summer storms, which pushed non-fuel unit cost up 7.3%.

What does Delta expect for the rest of 2026?

For the December quarter, Delta expects total revenue growth of approximately 20%, an operating margin of 7% to 9%, and EPS of $1.15 to $1.65 at an all-in fuel price of about $4.25 per gallon. For the full year, it expects EPS of $5.10 to $5.60 and free cash flow of approximately $2.5 billion, and the CEO said the company expects pre-tax profit of roughly $4.5 billion while absorbing a $6 billion increase in fuel costs.

How strong is Delta's balance sheet and cash generation?

Adjusted net debt was $13.35 billion at September 30, 2026, down $950 million from year-end 2025. Free cash flow was $463 million in the September quarter and $1.9 billion year to date. Delta plans to pay down more than $2 billion of debt in 2026, targeting gross leverage of approximately 2.2x at year end, and reported liquidity of $6.9 billion.

What demand trends did Delta report?

Demand remained strong. Domestic unit revenue rose 16%, Atlantic unit revenue rose 11%, and Latin America unit revenue rose 22%. Premium revenue grew 18%, cargo revenue rose 29%, MRO revenue grew 28%, and total loyalty revenue grew 18%. Management said revenue momentum is continuing into the December quarter.

DAL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed October 9, 2026. Cited figures are marked; the original filing is the authoritative source.

Delta Air Lines, Inc. (DAL) reported results for the quarter ended September 30, 2026 in a press release furnished as Exhibit 99.1 to this Form 8-K.

GAAP operating revenue was $20.19 billion^a, up 21% from $16.67 billion a year earlier, with operating income of $1.45 billion (7.2% margin, versus 10.1%) and diluted EPS of $1.15 versus $2.17. On an adjusted basis, operating revenue was $17.59 billion (up 16%), operating income was $1.66 billion, and diluted EPS was $1.72 versus $1.70. Management cited a sharp rise in fuel costs, with the adjusted average fuel price up 60% to $3.61 per gallon, and non-fuel unit cost (CASM-Ex) up 7.3%.

Management guided to December quarter total revenue growth of approximately 20%, operating margin of 7% to 9%, and EPS of $1.15 to $1.65^b based on an all-in fuel price of about $4.25 per gallon. For full-year 2026, the company outlined EPS of $5.10 to $5.60, free cash flow of approximately $2.5 billion, and gross leverage of approximately 2.2x. The CEO stated the company expects pre-tax profit of roughly $4.5 billion for the full year while absorbing a $6 billion increase in fuel costs.

Balance sheet metrics improved: adjusted net debt was $13.35 billion^c, down $950 million from year-end 2025, and free cash flow for the September quarter was $463 million. Management plans to pay down more than $2 billion of debt in 2026. Liquidity stood at $6.9 billion, including $3.1 billion of undrawn revolver capacity.

02—Key points

Key Highlights

GAAP operating revenue of $20.19 billion rose 21% year over year; adjusted operating revenue of $17.59 billion rose 16%.
GAAP diluted EPS was $1.15 versus $2.17 a year earlier; adjusted diluted EPS was $1.72 versus $1.70.
Adjusted average fuel price rose 60% to $3.61 per gallon; adjusted fuel expense was $4.14 billion, up 62%.
Non-fuel unit cost (CASM-Ex) was 14.03 cents, up 7.3% year over year, on flat capacity.
December quarter guidance: revenue growth of approximately 20%, operating margin of 7% to 9%, and EPS of $1.15 to $1.65.
Full-year 2026 guidance: EPS of $5.10 to $5.60, free cash flow of approximately $2.5 billion, and gross leverage of approximately 2.2x.
Adjusted net debt declined $950 million from year-end 2025 to $13.35 billion; liquidity was $6.9 billion at quarter end.

03—Questions

Frequently Asked Questions

How did Delta perform in the September 2026 quarter?
On a GAAP basis, operating revenue was $20.19 billion, up 21%, but operating income fell 14% to $1.45 billion and diluted EPS dropped to $1.15 from $2.17. Adjusted for third-party refinery sales, MTM hedge and investment items, and debt extinguishment, EPS was $1.72 versus $1.70 a year earlier, and adjusted operating revenue grew 16% to $17.59 billion.
What is driving the increase in costs?
Fuel is the primary driver. The adjusted average fuel price rose 60% to $3.61 per gallon, and adjusted fuel expense increased 62% to $4.14 billion. Management also cited higher crew and revenue-related costs on capacity growth, plus nearly one point of impact from summer storms, which pushed non-fuel unit cost up 7.3%.
What does Delta expect for the rest of 2026?
For the December quarter, Delta expects total revenue growth of approximately 20%, an operating margin of 7% to 9%, and EPS of $1.15 to $1.65 at an all-in fuel price of about $4.25 per gallon. For the full year, it expects EPS of $5.10 to $5.60 and free cash flow of approximately $2.5 billion, and the CEO said the company expects pre-tax profit of roughly $4.5 billion while absorbing a $6 billion increase in fuel costs.
How strong is Delta's balance sheet and cash generation?
Adjusted net debt was $13.35 billion at September 30, 2026, down $950 million from year-end 2025. Free cash flow was $463 million in the September quarter and $1.9 billion year to date. Delta plans to pay down more than $2 billion of debt in 2026, targeting gross leverage of approximately 2.2x at year end, and reported liquidity of $6.9 billion.
What demand trends did Delta report?
Demand remained strong. Domestic unit revenue rose 16%, Atlantic unit revenue rose 11%, and Latin America unit revenue rose 22%. Premium revenue grew 18%, cargo revenue rose 29%, MRO revenue grew 28%, and total loyalty revenue grew 18%. Management said revenue momentum is continuing into the December quarter.

04—Continue

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