Delta Air Lines (DAL) · Transportation
Delta Air Lines Q3 2026 earnings: summary, key numbers & outlook
Results filed 9 Oct 2026 · Quarter ended 30 Sep 2026
Official transcript (PDF) ↗Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Delta reported September quarter 2026 GAAP operating revenue of $20.2 billion and earnings per share of $1.15, with non-GAAP earnings per share of $1.72 and record adjusted revenue of $17.6 billion.
Delta's September quarter revenue grew strongly. Adjusted revenue rose 16 percent to a record $17.6 billion on flat capacity. Fuel was the problem: the adjusted fuel price rose 60 percent to $3.61 per gallon. Adjusted earnings per share were $1.72, up from $1.70. GAAP earnings per share fell to $1.15 from $2.17, mainly because of investment and hedge losses. Free cash flow was $463 million.
Management expects December quarter revenue to grow about 20 percent. It guides to earnings of $1.15 to $1.65 per share and full-year earnings of $5.10 to $5.60. The main risk is fuel, which the company puts at about $4.25 per gallon for the quarter. Non-fuel unit costs rose 7.3 percent and need to improve for margins to recover.
Key numbers
- Operating revenue (GAAP) · GAAP
- $20.2 billion
- Operating revenue, adjusted (excludes third-party refinery sales) · non-GAAP
- $17.6 billion
- Operating income (GAAP) · GAAP
- $1.5 billion
- Operating margin (GAAP) · GAAP
- 7.2 percent
- Net income (GAAP) · GAAP
- $756.0M
- Earnings per share (GAAP) · GAAP
- $1.15
- Earnings per share (adjusted) · non-GAAP
- $1.72
- Operating cash flow (GAAP) · GAAP
- $1.7 billion
up 21% from a year ago
up 16% from a year ago
down 2.9 points from a year ago
down 47% from a year ago
down 47% from a year ago
up 1% from a year ago
down 7% from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Loyalty and related revenue | $1.3B | up 19% from a year ago |
| Refinery revenue | $2.6B | up 76% from a year ago |
| Cargo revenue | 29 percent | up 29% from a year ago |
Where each number comes from
- Operating revenue (GAAP): “Operating revenue of $20.2 billion •Operating income of $1.5 billion with an operating margin of 7.2 percent •Pre-tax income of $1.1 billion”
- Operating revenue, adjusted (excludes third-party refinery sales): “Delta delivered record September quarter total revenue of $17.6 billion, increasing 16 percent over the same period last year.”
- Operating income (GAAP): “Operating revenue of $20.2 billion •Operating income of $1.5 billion with an operating margin of 7.2 percent •Pre-tax income of $1.1 billion”
- Operating margin (GAAP): “Operating revenue of $20.2 billion •Operating income of $1.5 billion with an operating margin of 7.2 percent •Pre-tax income of $1.1 billion”
- Net income (GAAP): “Income Tax Provision | (318) | (360) | 42 | (12)% | (798) | (886) | 88 | (10)% Net Income | $756 | $1,417 | $(661) | (47)%”
- Earnings per share (GAAP): “Pre-tax income of $1.1 billion with a pre-tax margin of 5.3 percent •Earnings per share of $1.15 •Operating cash flow of $1.7 billion”
- Earnings per share (adjusted): “Delta delivered earnings of $1.72 per share in the September quarter, in line with last year while absorbing more than $500 million of higher fuel costs compared to our guidance in early July.”
- Operating cash flow (GAAP): “Pre-tax income of $1.1 billion with a pre-tax margin of 5.3 percent •Earnings per share of $1.15 •Operating cash flow of $1.7 billion”
- Loyalty and related revenue: “Refinery | $2,601 | $1,476 | $1,125 | 76% | $6,346 | $3,680 | $2,666 | 72% Loyalty and related | 1,346 | 1,129 | 217 | 19%”
- Refinery revenue: “Refinery | $2,601 | $1,476 | $1,125 | 76% | $6,346 | $3,680 | $2,666 | 72% Loyalty and related | 1,346 | 1,129 | 217 | 19%”
- Cargo revenue: “Cargo revenue increased 29 percent year-over-year, with roughly equal growth between volume and yield.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q3 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $20.2B | +21.1% | +2.2% |
| Operating income | $1.5B | −13.7% | −22.0% |
| Net income | $756.0M | −46.6% | −52.9% |
| Diluted EPS | $1.15 | −47.0% | −52.9% |
| Operating margin | 7.2% | −2.9 pts | −2.2 pts |
Calculated by code from XBRL, not by the model.
Guidance check
| Metric | Outlook given with Q2 2026 | Reported | Result |
|---|---|---|---|
| EPS (GAAP) | $2.00 - $2.50 | $1.15 | below the range |
Compared with the company's own guidance, not analyst estimates, and only where the outlook and the reported figure are the same measure on the same basis. Ranges are worked out by code from the company's wording. How this works.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Total revenue growth year over year | December quarter 2026 | approximately 20 percent |
| Earnings per share | December quarter 2026 | $1.15 to $1.65 |
| Operating margin | December quarter 2026 | 7% - 9% |
| Earnings per share | full year 2026 | $5.10 to $5.60 |
| Free cash flow | full year 2026 | approximately $2.5 billion |
| Pre-tax profit | full year 2026 | roughly $4.5 billion |
| All-in fuel price per gallon | December quarter 2026 | approximately $4.25 per gallon |
| Gross leverage (adjusted debt to EBITDAR) | year-end 2026 | approximately 2.2x |
Key takeaways
Higher fares offset a 60% fuel price jump
Adjusted pre-tax income was $1,497 million versus $1,477 million a year ago. Adjusted fuel expense rose 62 percent to $4.1 billion.
GAAP earnings fell on investment and hedge losses
GAAP EPS was $1.15 versus $2.17, while adjusted EPS was $1.72 versus $1.70. The gap reflects MTM adjustments on investments and hedge results.
Demand strong across premium, loyalty and cargo
Premium revenue grew 18 percent, total loyalty revenue grew 18 percent and cargo revenue grew 29 percent. Diverse revenue streams were 61 percent of total revenue.
Non-fuel costs are rising faster than capacity
Non-fuel CASM was 14.03¢, up 7.3 percent on flat capacity. Management expects December quarter non-fuel unit cost growth to improve 1 to 2 points sequentially.
Delta is prioritizing debt reduction and cash
Adjusted net debt fell $950 million from the end of 2025 to $13.4 billion. Delta plans free cash flow of approximately $2.5 billion and more than $2 billion of debt paydown in 2026.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $15.6B * |
| Q1 2025 | $14.0B |
| Q2 2025 | $16.6B |
| Q3 2025 | $16.7B |
| Q4 2025 | $16.0B * |
| Q1 2026 | $15.9B |
| Q2 2026 | $19.8B |
| Q3 2026 | $20.2B |
Data
| Q1 2025 | $0.37 |
| Q2 2025 | $3.27 |
| Q3 2025 | $2.17 |
| Q1 2026 | -$0.44 |
| Q2 2026 | $2.44 |
| Q3 2026 | $1.15 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 11.0% |
| Q1 2025 | 4.1% |
| Q2 2025 | 12.6% |
| Q3 2025 | 10.1% |
| Q4 2025 | 9.2% |
| Q1 2026 | 3.2% |
| Q2 2026 | 9.4% |
| Q3 2026 | 7.2% |
Data
| Q4 2024 | $584.0M |
| Q1 2025 | $1.2B |
| Q2 2025 | $648.0M |
| Q3 2025 | $687.0M |
| Q4 2025 | $1.4B |
| Q1 2026 | $1.2B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Delta's September quarter 2026 results?
GAAP operating revenue was $20.2 billion and GAAP EPS was $1.15, down from $2.17. Adjusted revenue was a record $17.6 billion and adjusted EPS was $1.72, up from $1.70.
How much did fuel costs affect Delta?
Adjusted fuel expense rose 62 percent to $4.1 billion, with the adjusted price per gallon up 60 percent to $3.61. Management said it absorbed more than $500 million of higher fuel costs compared with its early July guidance.
What is Delta's outlook for the December quarter?
Delta expects total revenue to grow approximately 20 percent, an operating margin of 7% - 9%, and EPS of $1.15 to $1.65. This assumes fuel of approximately $4.25 per gallon.
What is Delta's full-year 2026 guidance?
Delta guides to EPS of $5.10 to $5.60 and free cash flow of approximately $2.5 billion. It also expects to pay down more than $2 billion of debt and end the year with gross leverage of approximately 2.2x.
How strong was Delta's cash flow and balance sheet?
Free cash flow was $463 million in the quarter and $1.9 billion year-to-date. Adjusted net debt was $13.4 billion, and liquidity was $6.9 billion.
Documents
From Delta Air Lines investor relations
- TranscriptCompany's official transcript ↗
- WebcastWebcast replay ↗
- Conference Call Non-GAAP ReconciliationsDocument ↗
- Form 10-QDocument ↗
SEC filing
Call recording
Call recording on YouTube ↗. Official replay ↗.