Delta Air Lines Boosts Balance Sheet, Targets 2026

Delta Air Lines has wrapped up 2025 on a strong note, reporting robust financial performance for both the December quarter and the full fiscal year underscoring resilient demand and disciplined execution as the carrier looks ahead to margin expansion in 2026.

For the December quarter, Delta posted $16.0 billion in operating revenue, generating $1.5 billion in operating income and an operating margin of 9.2%. Quarterly earnings per share reached $1.86, buoyed by sustained strength across premium cabins, international routes, and corporate travel. Operating cash flow totaled $2.3 billion, highlighting the airline’s solid core operations.

On a full-year basis, Delta delivered $63.4 billion in operating revenue, with operating income of $5.8 billion and pre-tax income of $6.2 billion, translating to a 9.8% pre-tax margin. Full-year EPS climbed to $7.66, while operating cash flow reached $8.3 billion, reinforcing the company’s cash-generative profile.

Delta Chief Executive Officer Ed Bastian said the results reflect the durability the airline has built over time. He noted that the company generated approximately $5 billion in pre-tax profit, achieved a double-digit operating margin, and produced record free cash flow of $4.6 billion, despite a challenging operating environment.

Bastian added that 2026 has started strongly, with accelerating top-line growth driven by consumer and corporate demand. For the full year, Delta expects margin expansion and earnings growth of about 20% year-over-year.

In a continued show of commitment to its workforce, Delta announced $1.3 billion in profit-sharing payouts to employees one of the largest distributions in the airline’s history recognizing staff contributions to the company’s performance.

Excluding special items, Delta’s free cash flow totaled $4.6 billion for the year, and the airline achieved a 12% return on invested capital, aligning with its long-term financial framework centered on profitability, cash generation, and balance-sheet strength.

The airline closed the year with $14.1 billion in total debt and finance lease obligations, marking further progress toward investment-grade balance sheet metrics.

With demand holding firm and financial fundamentals strengthening, Delta enters 2026 positioned to build on its momentum through improved margins and earnings growth.