Delta Air Lines reported fourth-quarter earnings that exceeded expectations, citing growth in its premium customer segment and the absence of prior headwinds as key factors for projected gains in 2026.
The company posted record adjusted revenue of $14.61 billion for the quarter, slightly below Bloomberg’s $14.67 billion consensus estimate but up 1.2% from the same period last year. Delta attributed the shortfall to the impact of a government shutdown, which also reduced earnings per share (EPS) by $0.25.
Adjusted EPS for the quarter was $1.55, above the expected $1.53.
For the first quarter of 2026, Delta forecast 5% to 7% revenue growth, an operating margin between 4.5% and 6%, and adjusted EPS of $0.50 to $0.90. For the full year, the company projected adjusted EPS between $6.50 and $7.50, a 20% year-over-year increase at the midpoint, and free cash flow of $3 billion to $4 billion.
Delta said the expected growth is driven by demand from high-income travelers opting for premium cabin experiences.
“There’s a lot of discussion everywhere you go on the K-shaped consumer, and our consumer happens to sit right at the top end of that K,” CEO Ed Bastian told reporters. He added that all of the company’s seat expansion is occurring in premium cabins, not economy.
A K-shaped recovery refers to economic trends in which higher-income groups benefit while lower-income groups experience stagnation or decline.
Bastian said 2026 has started strong, with rising consumer and corporate demand. He said challenges that affected the industry in 2025, such as economic effects of “Liberation Day” tariffs and the government shutdown, are not expected to impact 2026.
“We generated $5 billion of pre-tax profit [in 2025] with a double-digit operating margin and record free cash flow of $4.6 billion, all the while navigating a challenging environment,” Bastian said.
Delta’s adjusted revenue per available seat mile for the quarter was $20.02, down 0.1% from the prior year, which the company also attributed to the shutdown.
International business remained strong, with fourth-quarter growth of 5% driven by Transatlantic and Pacific routes. Delta said 90% of corporate clients—who frequently travel internationally—expect travel to either increase or stay the same in 2026.
