# Delta Air Lines (DAL) Q3 2026 earnings

Results filed 2026-10-09 for the quarter ended 2026-09-30. Source page: https://earnings.opennash.com/companies/dal/2026-q3/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/27904/000002790426000035/0000027904-26-000035-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Operating revenue (GAAP) | $20.2 billion | up 21% from a year ago | GAAP |
| Operating revenue, adjusted (excludes third-party refinery sales) | $17.6 billion | up 16% from a year ago | non-GAAP |
| Operating income (GAAP) | $1.5 billion |  | GAAP |
| Operating margin (GAAP) | 7.2 percent | down 2.9 points from a year ago | GAAP |
| Net income (GAAP) | $756 | down 47% from a year ago | GAAP |
| Earnings per share (GAAP) | $1.15 | down 47% from a year ago | GAAP |
| Earnings per share (adjusted) | $1.72 | up 1% from a year ago | non-GAAP |
| Operating cash flow (GAAP) | $1.7 billion | down 7% from a year ago | GAAP |
| Free cash flow | $463 million | down 44% from a year ago | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Loyalty and related revenue | 1,346 | up 19% from a year ago |
| Refinery revenue | $2,601 | up 76% from a year ago |
| Cargo revenue | 29 percent | up 29% from a year ago |

## 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

1. **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.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.

## Slides and investor documents

- [Transcript](https://s2.q4cdn.com/181345880/files/content_files/DAL-Edits-Final-Delta-Air-Lines-Inc-DAL-US-Q3-2026-Earnings-Call-9-October-2026-10_00-AM-ET.pdf) (Company's official transcript)
- [Webcast](https://events.q4inc.com/attendee/802834583) (Webcast replay)
- [Conference Call Non-GAAP Reconciliations](https://s2.q4cdn.com/181345880/files/doc_earnings/2026/q3/generic/3Q26-Call-Script-Non-GAAPs.pdf) (Document)
- [Form 10-Q](https://d18rn0p25nwr6d.cloudfront.net/CIK-0000027904/35c2864e-d8c8-4f3e-8b9e-1355755b7625.pdf) (Document)