CONTACT: Investor Relations Corporate Communications
InvestorRelations@delta.com Media@delta.com Delta Air Lines Announces September Quarter 2026 Financial Results
Strength of results and outlook demonstrate Delta’s structural durability in high fuel cost environment
Record September quarter revenue on broad demand strength and healthy yield growth
Expect continued momentum in December quarter with revenue expected to grow approximately 20 percent
Outlook for full-year EPS of $5.10 to $5.60 and free cash flow of approximately $2.5 billion
Strengthening investment-grade balance sheet with plan to pay down more than $2 billion of debt in 2026
October 9, 2026 – Delta Air Lines (NYSE: DAL) today reported financial results for the September quarter and provided its outlook for the December quarter and full year 2026. Highlights of the September quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.
“Demand remains strong, supported by consumers’ growing preference for experiences and travel, with air travel continuing to be one of the best values in the consumer economy. Against this backdrop, we delivered September quarter pre-tax profit of $1.5 billion, matching last year's performance, and generated $1.9 billion of free cash flow year-to-date. Our resilience reflects the structural durability we’ve built over many years, enabling us to effectively navigate one of the most elevated fuel environments in recent times. The foundation of that resilience is our people, whose commitment to delivering for our customers continues to set Delta apart," said Ed Bastian, Delta’s chief executive officer.
"For the full year, we expect to generate a pre-tax profit of roughly $4.5 billion, absorbing a $6 billion increase in fuel costs. Looking ahead, our focus remains on profitable growth and delivering against our long-term financial framework, including mid-teens margins and returns, durable free cash flow and gross leverage of approximately one times."
4Q26 FY 2026 Total Revenue YoY Approx. 20% Earnings Per Share $5.10 - $5.60 (%) Operating Margin 7% - 9% Free Cash Flow ($B) Approx. $2.5 Earnings Per Share $1.15 - $1.65 Gross Leverage2 Approx. 2.2x
Guidance for the December quarter assumes fuel at the forward curve as of October 2, 2026, and includes a refinery benefit of approximately $0.40 per gallon. This results in a projected all-in fuel price for the quarter of approximately $4.25 per gallon.
"September quarter revenue grew approximately 16 percent over prior year, on flat capacity, driven by broad demand strength and healthy yield growth as we cover higher costs and manage the business for margins,” said Joe Esposito, Delta’s chief commercial officer.
“Revenue momentum is continuing in the December quarter, with strength across all products and geographies, supporting our outlook for total revenue growth of approximately 20 percent over last year. With seats growing less than 2 percent, including a reduction in Main Cabin seats, our capacity positioning supports another quarter of sequential improvement in unit revenue with progression in both Domestic and International.”
• Broad demand strength continued in the September quarter: Delta delivered record September quarter total revenue of $17.6 billion, increasing 16 percent over the same period last year. Adjusted total unit revenue (TRASM) grew 15 percent over prior year, accelerating 3 points from the prior quarter. Main cabin unit revenue grew 17 percent over prior year on seats down low-single digits, marking another quarter of sequential progress.
Strong revenue performance across all geographies: Domestic unit revenue grew 16 percent year-over-year on strong yields and a load factor that was 1 point higher than last year, reflecting the strength of Delta's brand and a measured approach to capacity. I nternational unit revenue increased 12 percent, with performance led by Latin where unit revenue improved 22 percent over last year. Transatlantic unit revenue growth improved 4 points sequentially to 11 percent year-over-year. Transpacific revenue grew 13 percent over prior year on 8 percent higher capacity, supporting profitable growth through new routes to Asia.
• Continued momentum in diversified, high-margin revenue streams: Diverse revenue streams accounted for 61 percent of total revenue in the September quarter. Premium revenue grew 18 percent year-over-year with double-digit unit revenue growth driven by yield and load factor on a 6 percent increase in seats. Cargo revenue increased 29 percent year-over-year, with roughly equal growth between volume and yield. MRO revenue grew 28 percent year-over-year, bringing year-to-date revenue to $990 million.
• Growing member engagement across loyalty ecosystem: Total loyalty revenue grew 18 percent, with SkyMiles member engagement continuing to deepen in the air and beyond the flight. Co-brand card acquisitions and spend both grew double-digits, the eighth consecutive quarter of double-digit growth in cardholder spend. This momentum supported 15 percent growth in American Express remuneration in the quarter, positioning the full year to exceed $9 billion. Travel products and non-air partnership revenue increased 25 percent year-over-year.
grew double-digits in all sectors: Corporate sales growth was led by the Banking, Technology, and Energy sectors, with particularly strong performance in Boston and Los Angeles. Recent corporate survey results indicate over 90 percent of respondents expect their corporate travel will increase or stay the same in 2027.
1 Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures
3 Corporate travel sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period 2
"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. In the December quarter, we expect earnings of $1.15 to $1.65 per share, based on a fuel price of approximately $4.25 per gallon. This positions earnings consistent with last year at the upper end of the range," said Erik Snell, Delta’s chief financial officer.
"The Delta team continues to deliver for our customers, widening our industry lead in on-time performance and achieving record baggage results. September quarter non-fuel unit costs increased 7.3 percent over the prior year on flat capacity, driven primarily by higher crew and revenue-related costs on capacity growth that was several points below our original plan, including nearly one point of impact from summer storms. With slightly higher capacity and continued operational efficiencies, we expect December quarter non-fuel unit cost growth to improve 1 to 2 points sequentially. Looking to next year, we remain on track for low-single-digit unit cost growth as capacity normalizes, operational improvements continue and we lap higher costs in our baseline."
• Operating expense of $18.7 billion and adjusted operating expense of $15.9 billion
• Adjusted fuel price of $3.61 per gallon increased 60 percent year-over-year with a refinery benefit of 13¢ per gallon
"We generated $463 million of free cash flow in the September quarter. The strength of our cash flow generation allows us to consistently reinvest to compound our advantages while reinforcing our investment grade balance sheet. For the full year, we expect to deliver free cash flow of approximately $2.5 billion and pay down more than $2 billion of debt, positioning us to end the year with gross leverage of approximately 2.2x,” Snell said.
• Adjusted net debt of $13.4 billion at September quarter end, a reduction of $950 million from the end of 2025
• Payments on debt and finance lease obligations for the September quarter of $1.2 billion
• Adjusted operating cash flow in the September quarter of $1.7 billion, and with gross capital expenditures of $1.4 billion, free cash flow was $463 million
• Liquidity 1 of $6.9 billion at quarter-end, including $3.1 billion in undrawn revolver capacity
1 Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities 3
• Led all carriers 1 in on-time arrival and departure performance for the quarter.
• Set a Delta September quarter record 2 for Domestic mishandled baggage rate (MBR).
• Took delivery of 13 aircraft in the quarter, including A350-900, A321neo, and A220-300 aircraft.
• Announced new international service from Seattle to Tokyo-Narita, Los Angeles to Manila, Austin to Paris-Charles de Gaulle, Detroit to Athens, and Boston to Venice, with flights beginning in 2027, while extending seasonal service on select Transatlantic routes.
• Expanded position in Los Angeles with announcement of largest-ever schedule, with new and increased service to multiple U.S. destinations.
• Recognized by customers for the fifth consecutive year with the award for Best Airline Staff Service in North America at the Skytrax World Airline Awards.
• Accrued nearly $900 million in profit sharing year-to-date toward next February's payout.
• Named to TIME's America's Best Companies list, the only airline in the top 100.
• Ranked No. 1 on PEOPLE's Companies That Care list, the only airline recognized.
• Contributed $100,000 to American Red Cross earthquake relief efforts in Colombia.
• Established the Chief Data Officer position, welcoming Ramnik Bajaj to advance Delta’s data and AI capabilities, accelerate innovation, and enhance decision- making, unlocking new opportunities for Delta.
• Announced a strategic relationship with Hyatt, expanding the SkyMiles loyalty ecosystem with another category-leading premium brand.
• JD Power ranked the Delta SkyMiles Reserve, Platinum, and Gold American Express Cards in the top three, respectively, for airline co-brand card customer satisfaction in 2026.
• Accelerated co-brand card acquisitions, driven by innovative card offers, such as two round-trip Delta Comfort tickets and Delta's highest-ever introductory mileage offer for new Reserve Card sign-ups.
• Active SkyMiles member base continued to grow, led by Gen Z and millennials, with outsized growth in focus cities and coastal hubs.
• Enhanced long-standing partnership with Starbucks with more ways for SkyMiles members to earn rewards.
• Continued rollout of fast, free Wi-Fi for SkyMiles members across nearly all of Delta's fleet with recent satellite upgrades expected to provide meaningful enhancements to connectivity.
• Completed rollout of Delta Concierge, our AI-powered digital assistant, to all SkyMiles members.
• Expanded Delta Sync experiences and offers through new partnerships with DraftKings and Sport 24.
• Announced a reimagined Delta One wine program featuring a curated selection of wines from Napa Valley and destinations across Delta's global network, supported by Delta's Sky Sommelier program.
• Completed a new SAF blending facility at Flint Hills Resources' Pine Bend Refinery, expanding SAF availability at Delta's second-largest hub in Minneapolis-St. Paul.
• Joined the launch of the Georgia Sustainable Aviation Fuel (SAF) Coalition as a founding member.
• Launched a partnership with the National Park Foundation to support conservation across America's national parks.
1 FlightStats preliminary data for Delta flights system wide. All carriers is defined as competitive set (AA, AS, B6, DL, UA, and WN) from July 1 - Sep 30, 2026. On-time performance includes A0, and A14. Departure performance defined as D0
September quarter results have been adjusted primarily for third-party refinery sales, gains/losses on investments and Monroe hedge results as described in the reconciliations in Note A.
1 Updated definition excludes aircraft fuel and related taxes, Third-party refinery sales, MRO expense, and profit sharing 5
Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer.
There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,500 daily Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other.
Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by Cirium for being the top on-time airline in North America for the fifth consecutive year.
We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.
Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.
As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential.
A founding member of the SkyTeam alliance and powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta’s premium product line is elevated by its unique partnership with Wheels Up Experience.
Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the award from Cirium, Delta has been recognized as the World’s Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; the top carrier for business travelers by Business Travel News; and best U.S. airline by Forbes Travel Guide’s Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded companies in the U.S.
Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered “forward-looking statements” under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; failure of the technology we use or depend on to perform effectively, including new and emerging technologies; increases in the price of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC (“Monroe”), our wholly-owned subsidiary that operates the Trainer refinery; failure to achieve expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial or other covenants in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe’s refinery; failure to comply with existing and future environmental regulations to which Monroe’s refinery operations are subject, including those relating to the discharge of materials into the environment, waste management, pollution prevention measures and greenhouse gas emissions; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports where we operate; significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of laws and regulations governing environmental protection, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.
Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law. 6
DELTA AIR LINES, INC. Consolidated Statements of Cash Flows (Unaudited) (in millions) Three Months Ended Cash Flows From Operating September 30, Activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 756 $ 1,417 Depreciation and amortization 673 614 (Gain) loss on fair value 226 -307 investments Changes in air traffic -460 -728 liability Changes in profit sharing 386 392 Changes in balance sheet and 132 459 other, net Net cash provided by operating 1,713 1,847 activities Cash Flows From Investing Activities: Property and equipment additions: Flight equipment, including advance -1,200 -930 payments Ground property and equipment, including -213 -230 technology Acquisition of strategic investments and -45 — related Other, net 155 125 Net cash used in investing -1,303 -1,035 activities Cash Flows From Financing Activities: Proceeds from short-term 75 — obligations Proceeds from long-term — 217 obligations Payments on debt and finance lease -1,234 -459 obligations Cash dividends -141 -122 Other, net -1 -6 Net cash used in financing -1,301 -370 activities Net (Decrease)/Increase in Cash, Cash Equivalents and Restricted -891 442 Cash Equivalents Cash, cash equivalents and restricted 4,773 3,529 cash equivalents at beginning of period Cash, cash equivalents and restricted $ 3,882 $ 3,971 cash equivalents at end of period The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the same such amounts shown above:
Current assets: Cash and cash equivalents $ 3,787 $ 3,791 Restricted cash included in prepaid 77 97 expenses and other Other assets: Restricted cash included in other 18 83 noncurrent assets Total cash, cash equivalents and $ 3,882 $ 3,971 restricted cash equivalents
DELTA AIR LINES, INC. Consolidat… Balance Sheets (Unaudited) (in millions) ASSETS September Current 30, December 31, Assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 3,787 $ 4,310 equivalents Accounts receivable, 4,325 2,850 net Fuel, expendable parts and 2,637 1,601 supplies inventories, net Prepaid expenses and 2,741 2,207 other Total current 13,490 10,968 assets Noncurrent Assets: Property and equipment, 42,206 39,743 net Operating lease 6,120 6,244 right-of-use assets Goodwill 9,753 9,753 Identifiable intangibles, 5,960 5,966 net Equity 3,824 4,222 investments Other noncurrent 4,695 4,421 assets Total noncurrent 72,558 70,349 assets Total $ 86,048 $ 81,317 assets LIABILITIES AND STOCKHOLDE… EQUITY Current Liabilitie… Current maturities of debt and $ 3,324 $ 1,605 finance leases Current maturities of 912 809 operating leases Air traffic 9,560 7,157 liability Accounts 6,595 5,226 payable Accrued salaries and 4,550 4,906 related benefits Loyalty program 5,451 4,876 deferred revenue Fuel card 1,100 1,100 obligation Other accrued 2,083 1,945 liabilities Total current 33,575 27,624 liabilities Noncurrent Liabilitie… Debt and finance 9,527 12,507 leases Noncurrent operating 5,072 5,353 leases Pension, postretireme… 3,031 3,156 and related benefits Loyalty program 4,181 4,386 deferred revenue Deferred income taxes, 4,232 3,444 net Other noncurrent 3,917 3,994 liabilities Total noncurrent 29,960 32,840 liabilities Commitments and Contingenc… Stockholde… 22,513 20,853 Equity: Total liabilities and $ 86,048 $ 81,317 stockholde… equity
Exhibit 99.1 Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate exactly due to rounding.
Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”). Under the Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.
Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as those used in the reconciliations below will not be known until the end of the period and could be significant.
These reconciliations include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and for the reasons indicated below:
Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.
MTM adjustments and settlements on hedges. Mark-to-market ( " MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. MTM fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts closed (i.e., settled) during the applicable period. With respect to hedges related to Monroe's inventory, settlements often occur before the related refinery inventory is sold. Beginning in 2026, settlement gains and losses related to Monroe's inventory that remains on-hand at period end are excluded from our adjusted results. These settlement gains and losses will be reflected in adjusted results during the period the inventory is sold. This change was made to match the timing of expense and revenue recognition and we have similarly adjusted the presentation of reconciliations for prior periods included here.
MTM adjustments on investments. Unrealized MTM gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.
Gain/loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.
Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted
We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive compensation programs. F ree cash flow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) pension plan contributions, (ii) net cash flows related to certain airport construction projects and other, and (iii) strategic investments and related. These adjustments are made for the following reasons:
Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations.
Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are core to our operations in the periods shown.
Strategic investments and related. Certain cash flows related to our investments in and related transactions with other airlines and associated companies are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers.
Three Months September 30, September (in millions) Ended 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by $ 1,713 $ 1,847 operating activities Net cash used in -1,303 -1,035 investing activities Adjusted for: Pension plan — 6 contributio… Net cash flows related to certain 9 15 airport construction projects and other Strategic investments 45 — and related Free cash $ 463 $ 833 flow
Nine Months Ended (in millions) September 30, 2026 ───────────────────────────────────────────────────────────────────────── Net cash provided by operating activities $ 5,740 Net cash used in investing activities -4,078 Adjusted for: Pension plan contributions 4 Net cash flows related to certain airport 83 construction projects and other Strategic investments and related 150 Free cash flow $ 1,900
We present operating cash flow, adjusted because management believes adjusting for the following item provides a more meaningful measure for investors:
Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities. We adjust for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's operating cash flow that is core to our operations in the periods shown.
Three Months September 30, September (in millions) Ended 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Net cash provided by $ 1,713 $ 1,847 operating activities Adjusted for: Net cash flows related to certain 3 -31 airport construction projects and other Operating cash flow, $ 1,716 $ 1,816 adjusted
Operating revenue, adjusted related to premium products and diverse revenue streams
Three Months Ended (in millions) September 30, 2026 ────────────────────────────────────────────────────────────────────────── Operating revenue $ 20,186 Adjusted for: Third-party refinery sales -2,601 Operating revenue, adjusted $ 17,585 Less: main cabin revenue -6,802 Operating revenue, adjusted related to premium products and diverse revenue $ 10,783 streams Percent of operating revenue, adjusted related to premium products and diverse 61 % revenue streams
Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex")
We adjust operating expense and CASM for certain items described above, as well as the following items and reasons described below:
Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance.
MRO expense. We adjust for MRO expenses because this adjustment allows investors to better understand and analyze the airline's recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.
We use adjusted gross debt, including fleet operating lease liabilities (comprised of aircraft and engine leases and regional aircraft leases embedded within our capacity purchase agreements) and unfunded pension liabilities (if applicable), in addition to adjusted debt and finance leases, to present estimated financial obligations. We reduce adjusted total debt by cash, cash equivalents, and LGA restricted cash, resulting in adjusted net debt, to present the amount of assets needed to satisfy the debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile.
We adjust capital expenditures for the following item to determine gross capital expenditures for the reason described below:
Net cash flows related to certain airport construction projects. Cash flows related to certain airport construction projects are included in capital expenditures. We adjust for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either funded with restricted cash specific to these projects or reimbursed by a third party.
Three Months September 30, September (in millions) Ended 2026 30, 2025 ────────────────────────────────────────────────────────────────────────────── Flight equipment, including $ 1,200 $ 930 advance payments Ground property and equipment, 213 230 including technology Adjusted for: Net cash flows related to certain -5 -47 airport construction projects Gross capital $ 1,408 $ 1,113 expenditures
Full text with the tables
Exhibit 99.1
CONTACT: Investor Relations Corporate Communications
404-715-2170 404-715-2554
InvestorRelations@delta.com Media@delta.com
Delta Air Lines Announces September Quarter 2026 Financial Results
Strength of results and outlook demonstrate Delta’s structural durability in
high fuel cost environment
Record September quarter revenue on broad demand strength and healthy yield
growth
Expect continued momentum in December quarter with revenue expected to grow
approximately 20 percent
Outlook for full-year EPS of $5.10 to $5.60 and free cash flow of approximately
$2.5 billion
with a double-digit return on invested capital
Strengthening investment-grade balance sheet with plan to pay down more than $2
billion of debt in 2026
ATLANTA,
October 9, 2026 – Delta Air Lines (NYSE: DAL) today reported financial results
for the September quarter and provided its outlook for the December quarter and
full year 2026. Highlights of the September quarter, including both GAAP and
adjusted metrics, are on page five and incorporated here.
“Demand remains strong, supported by consumers’ growing preference for
experiences and travel, with air travel continuing to be one of the best values
in the consumer economy. Against this backdrop, we delivered September quarter
pre-tax profit of $1.5 billion, matching last year's performance, and generated
$1.9 billion of free cash flow year-to-date. Our resilience reflects the
structural durability we’ve built over many years, enabling us to effectively
navigate one of the most elevated fuel environments in recent times. The
foundation of that resilience is our people, whose commitment to delivering for
our customers continues to set Delta apart," said Ed Bastian, Delta’s chief
executive officer.
"For the full year, we expect to generate a pre-tax profit of roughly $4.5
billion, absorbing a $6 billion increase in fuel costs. Looking ahead, our focus
remains on profitable growth and delivering against our long-term financial
framework, including mid-teens margins and returns, durable free cash flow and
gross leverage of approximately one times."
September Quarter 2026 GAAP Financial Results
• 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 with a pre-tax margin of 5.3 percent
• Earnings per share of $1.15
• Operating cash flow of $1.7 billion
September Quarter 2026 Non-GAAP Financial Results
• Operating revenue of $17.6 billion
• Operating income of $1.7 billion with an operating margin of 9.4 percent
• Pre-tax income of $1.5 billion with a pre-tax margin of 8.5 percent
• Earnings per share of $1.72
• Operating cash flow of $1.7 billion
1
Exhibit 99.1
Financial Guidance
1
4Q26 FY 2026
Total Revenue YoY Approx. 20% Earnings Per Share $5.10 - $5.60
(%)
Operating Margin 7% - 9% Free Cash Flow ($B) Approx. $2.5
Earnings Per Share $1.15 - $1.65 Gross Leverage2 Approx. 2.2x
Guidance for the December quarter assumes fuel at the forward curve as of
October 2, 2026, and includes a refinery benefit of approximately $0.40 per
gallon. This results in a projected all-in fuel price for the quarter of
approximately $4.25 per gallon.
Revenue Environment and Outlook
"September quarter revenue grew approximately 16 percent over prior year, on
flat capacity, driven by broad demand strength and healthy yield growth as we
cover higher costs and manage the business for margins,” said Joe Esposito,
Delta’s chief commercial officer.
“Revenue momentum is continuing in the December quarter, with strength across
all products and geographies, supporting our outlook for total revenue growth of
approximately 20 percent over last year. With seats growing less than 2 percent,
including a reduction in Main Cabin seats, our capacity positioning supports
another quarter of sequential improvement in unit revenue with progression in
both Domestic and International.”
• Broad demand strength continued in the September quarter: Delta delivered
record September quarter total revenue of $17.6 billion, increasing 16 percent
over the same period last year. Adjusted total unit revenue (TRASM) grew 15
percent over prior year, accelerating 3 points from the prior quarter. Main
cabin unit revenue grew 17 percent over prior year on seats down low-single
digits, marking another quarter of sequential progress.
•
Strong revenue performance across all geographies: Domestic unit revenue grew 16
percent year-over-year on strong yields and a load factor that was 1 point
higher than last year, reflecting the strength of Delta's brand and a measured
approach to capacity. I nternational unit revenue increased 12 percent, with
performance led by Latin where unit revenue improved 22 percent over last year.
Transatlantic unit revenue growth improved 4 points sequentially to 11 percent
year-over-year. Transpacific revenue grew 13 percent over prior year on 8
percent higher capacity, supporting profitable growth through new routes to
Asia.
• Continued momentum in diversified, high-margin revenue streams: Diverse
revenue streams accounted for 61 percent of total revenue in the September
quarter. Premium revenue grew 18 percent year-over-year with double-digit unit
revenue growth driven by yield and load factor on a 6 percent increase in seats.
Cargo revenue increased 29 percent year-over-year, with roughly equal growth
between volume and yield. MRO revenue grew 28 percent year-over-year, bringing
year-to-date revenue to $990 million.
• Growing member engagement across loyalty ecosystem: Total loyalty revenue grew
18 percent, with SkyMiles member engagement continuing to deepen in the air and
beyond the flight. Co-brand card acquisitions and spend both grew double-digits,
the eighth consecutive quarter of double-digit growth in cardholder spend. This
momentum supported 15 percent growth in American Express remuneration in the
quarter, positioning the full year to exceed $9 billion. Travel products and
non-air partnership revenue increased 25 percent year-over-year.
•
Corporate sales
3
grew double-digits in all sectors: Corporate sales growth was led by the
Banking, Technology, and Energy sectors, with particularly strong performance in
Boston and Los Angeles. Recent corporate survey results indicate over 90 percent
of respondents expect their corporate travel will increase or stay the same in
2027.
1 Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison
figures
2 Adjusted debt to EBITDAR
3 Corporate travel sales represent the revenue from tickets sold to corporate
contracted customers, including tickets for travel during and beyond the
referenced time period
2
Exhibit 99.1
Cost Performance and Outlook
"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. In the December quarter, we expect
earnings of $1.15 to $1.65 per share, based on a fuel price of approximately
$4.25 per gallon. This positions earnings consistent with last year at the upper
end of the range," said Erik Snell, Delta’s chief financial officer.
"The Delta team continues to deliver for our customers, widening our industry
lead in on-time performance and achieving record baggage results. September
quarter non-fuel unit costs increased 7.3 percent over the prior year on flat
capacity, driven primarily by higher crew and revenue-related costs on capacity
growth that was several points below our original plan, including nearly one
point of impact from summer storms. With slightly higher capacity and continued
operational efficiencies, we expect December quarter non-fuel unit cost growth
to improve 1 to 2 points sequentially. Looking to next year, we remain on track
for low-single-digit unit cost growth as capacity normalizes, operational
improvements continue and we lap higher costs in our baseline."
September Quarter 2026 Cost Performance
• Operating expense of $18.7 billion and adjusted operating expense of $15.9
billion
• Adjusted non-fuel costs of $11.1 billion
• Non-fuel CASM was 14.03¢, an increase of 7.3 percent year-over-year
• Adjusted fuel expense of $4.1 billion was up 62 percent year-over-year
• Adjusted fuel price of $3.61 per gallon increased 60 percent year-over-year
with a refinery benefit of 13¢ per gallon
• Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.5
Balance Sheet, Cash and Liquidity
"We generated $463 million of free cash flow in the September quarter. The
strength of our cash flow generation allows us to consistently reinvest to
compound our advantages while reinforcing our investment grade balance sheet.
For the full year, we expect to deliver free cash flow of approximately $2.5
billion and pay down more than $2 billion of debt, positioning us to end the
year with gross leverage of approximately 2.2x,” Snell said.
• Adjusted net debt of $13.4 billion at September quarter end, a reduction of
$950 million from the end of 2025
• Payments on debt and finance lease obligations for the September quarter of
$1.2 billion
• Adjusted operating cash flow in the September quarter of $1.7 billion, and
with gross capital expenditures of $1.4 billion, free cash flow was $463 million
• Air Traffic Liability ended the qu arter at $9.6 billion
• Liquidity 1 of $6.9 billion at quarter-end, including $3.1 billion in undrawn
revolver capacity
1 Includes cash and cash equivalents, short-term investments and undrawn
revolving credit facilities
3
Exhibit 99.1
September Quarter 2026 Highlights
Operations, Network, and Fleet
• Led all carriers 1 in on-time arrival and departure performance for the
quarter.
• Set a Delta September quarter record 2 for Domestic mishandled baggage rate
(MBR).
• Took delivery of 13 aircraft in the quarter, including A350-900, A321neo, and
A220-300 aircraft.
• Announced new international service from Seattle to Tokyo-Narita, Los Angeles
to Manila, Austin to Paris-Charles de Gaulle, Detroit to Athens, and Boston to
Venice, with flights beginning in 2027, while extending seasonal service on
select Transatlantic routes.
• Expanded position in Los Angeles with announcement of largest-ever schedule,
with new and increased service to multiple U.S. destinations.
Culture and People
• Recognized by customers for the fifth consecutive year with the award for Best
Airline Staff Service in North America at the Skytrax World Airline Awards.
• Accrued nearly $900 million in profit sharing year-to-date toward next
February's payout.
• Named to TIME's America's Best Companies list, the only airline in the top
100.
• Ranked No. 1 on PEOPLE's Companies That Care list, the only airline
recognized.
• Contributed $100,000 to American Red Cross earthquake relief efforts in
Colombia.
• Established the Chief Data Officer position, welcoming Ramnik Bajaj to advance
Delta’s data and AI capabilities, accelerate innovation, and enhance decision-
making, unlocking new opportunities for Delta.
Customer Experience and Loyalty
• Announced a strategic relationship with Hyatt, expanding the SkyMiles loyalty
ecosystem with another category-leading premium brand.
• JD Power ranked the Delta SkyMiles Reserve, Platinum, and Gold American
Express Cards in the top three, respectively, for airline co-brand card customer
satisfaction in 2026.
• Accelerated co-brand card acquisitions, driven by innovative card offers, such
as two round-trip Delta Comfort tickets and Delta's highest-ever introductory
mileage offer for new Reserve Card sign-ups.
• Active SkyMiles member base continued to grow, led by Gen Z and millennials,
with outsized growth in focus cities and coastal hubs.
• Enhanced long-standing partnership with Starbucks with more ways for SkyMiles
members to earn rewards.
• Continued rollout of fast, free Wi-Fi for SkyMiles members across nearly all
of Delta's fleet with recent satellite upgrades expected to provide meaningful
enhancements to connectivity.
• Completed rollout of Delta Concierge, our AI-powered digital assistant, to all
SkyMiles members.
• Expanded Delta Sync experiences and offers through new partnerships with
DraftKings and Sport 24.
• Announced a reimagined Delta One wine program featuring a curated selection of
wines from Napa Valley and destinations across Delta's global network, supported
by Delta's Sky Sommelier program.
Environmental Sustainability
• Expanded SAF access through a multi-airport agreement with Shell Aviation.
• Completed a new SAF blending facility at Flint Hills Resources' Pine Bend
Refinery, expanding SAF availability at Delta's second-largest hub in
Minneapolis-St. Paul.
• Joined the launch of the Georgia Sustainable Aviation Fuel (SAF) Coalition as
a founding member.
• Launched a partnership with the National Park Foundation to support
conservation across America's national parks.
1 FlightStats preliminary data for Delta flights system wide. All carriers is
defined as competitive set (AA, AS, B6, DL, UA, and WN) from July 1 - Sep 30,
2026. On-time performance includes A0, and A14. Departure performance defined as
D0
2 Excludes 2020
4
Exhibit 99.1
September Quarter 2026 Results
September quarter results have been adjusted primarily for third-party refinery
sales, gains/losses on investments and Monroe hedge results as described in the
reconciliations in Note A.
GAAP $ %
Chan… Chan…
($ in
mill…
exce…
per 3Q26 3Q25
share
and
unit
cost…
Oper… 1,454 1,684 -230 -14 %
inco…
Oper… 7.2 % 10.1 % -2.9 pts -29 %
marg…
Pre-… 1,074 1,777 -703 -40 %
inco…
Pre-… 5.3 % 10.7 % -5.4 pts -50 %
marg…
Net 756 1,417 -661 -47 %
inco…
Dilu…
earn… 1.15 2.17 -1.02 -47 %
per
share
Oper… 20,186 16,673 3,513 21 %
reve…
Total
reve…
per
avai… 25.46 21.09 4.37 21 %
seat
mile
(TRA…
(cen…
Oper… 18,732 14,989 3,743 25 %
expe…
Cost
per
avai…
seat 23.63 18.96 4.67 25 %
mile
(CAS…
(cen…
Fuel 4,351 2,570 1,781 69 %
expe…
Aver…
fuel
price 3.80 2.26 1.54 68 %
per
gall…
Oper…
cash 1,713 1,847 -134 -7 %
flow
Capi… 1,413 1,160 253 22 %
expe…
Total
debt
and 12,851 14,879 -2,028 -14 %
fina…
lease
obli…
Adjus… $ %
Chan… Chan…
($
in
mil…
exc…
per 3Q26 3Q25
sha…
and
unit
cos…
Ope… 1,662 1,688 -26 -2 %
inc…
Ope… 9.4 % 11.1 % -1.7 pts -15 %
mar…
Pre… 1,497 1,477 20 1 %
inc…
Pre… 8.5 % 9.7 % -1.2 pts -12 %
mar…
Net 1,134 1,114 20 2 %
inc…
Dil…
ear… 1.72 1.70 0.02 1 %
per
sha…
Ope… 17,5… 15,197 2,388 16 %
rev…
TRA… 22.18 19.22 2.96 15 %
(ce…
Ope… 15,9… 13,508 2,416 18 %
exp…
Non… 11,1… 10,339 786 8 %
cos…
Non…
unit
cost 14.03 13.08 0.95 7.3 %
(CA…
(ce…
Fuel 4,143 2,565 1,578 62 %
exp…
Ave…
fuel
pri… 3.61 2.25 1.36 60 %
per
gal…
Ope…
cash 1,716 1,816 -100 -6 %
flow
Free
cash 463 833 -370 -44 %
flow
Gro…
cap… 1,408 1,113 295 27 %
exp…
Adj…
net 13,3… 15,586 -2,236 -14 %
debt
1 Updated definition excludes aircraft fuel and related taxes, Third-party
refinery sales, MRO expense, and profit sharing
5
Exhibit 99.1
About Delta Air Lines
Through exceptional service and the power of innovation, Delta Air Lines (NYSE:
DAL) never stops looking for ways to make every trip feel tailored to every
customer.
There are 100,000 Delta people leading the way to deliver a world-class customer
experience on up to 5,500 daily Delta and Delta Connection flights to more than
300 destinations on six continents, connecting people to places and to each
other.
Delta served more than 200 million customers in 2025 – safely, reliably and with
industry-leading customer service innovation – and was recognized by Cirium for
being the top on-time airline in North America for the fifth consecutive year.
We remain committed to ensuring that the future of travel is connected,
personalized and enjoyable. Our people's genuine, enduring motivation is to make
every customer feel welcomed and cared for across every point of their journey
with us.
Headquartered in Atlanta, Delta operates significant hubs and key markets in
Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles,
Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de
Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and
Tokyo.
As the leading global airline, Delta's mission to connect the world creates
opportunities, fosters understanding and expands horizons by connecting people
and communities to each other and to their own potential.
A founding member of the SkyTeam alliance and powered by innovative and
strategic partnerships throughout the world with Aeromexico, Air France-KLM,
China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more
choice and competition to customers worldwide. Delta’s premium product line is
elevated by its unique partnership with Wheels Up Experience.
Delta is America's most-awarded airline thanks to the dedication, passion and
professionalism of its people. In addition to the award from Cirium, Delta has
been recognized as the World’s Most Admired Airline and one of the Best 100
Companies to Work For according to Fortune; the top carrier for business
travelers by Business Travel News; and best U.S. airline by Forbes Travel
Guide’s Verified Air Travel Awards. In addition, Delta has been named to the
Civic 50 by Points of Light as one of the most community minded companies in the
U.S.
Forward Looking Statements
Statements made in this press release that are not historical facts, including
statements regarding our estimates, expectations, beliefs, intentions,
projections, goals, aspirations, commitments or strategies for the future,
should be considered “forward-looking statements” under the Securities Act of
1933, as amended, the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. Such statements are not
guarantees or promised outcomes and should not be construed as such. All
forward-looking statements involve a number of risks and uncertainties that
could cause actual results to differ materially from the estimates,
expectations, beliefs, intentions, projections, goals, aspirations, commitments
and strategies reflected in or suggested by the forward-looking statements.
These risks and uncertainties include, but are not limited to, the possible
effects of serious accidents involving our aircraft or aircraft of our airline
partners; breaches or lapses in the security of technology systems we use and
rely on, which could compromise the data stored within them, as well as failure
to comply with evolving global privacy and security regulatory obligations or
adequately address increasing customer focus on privacy issues and data
security; disruptions in our information technology infrastructure; failure of
the technology we use or depend on to perform effectively, including new and
emerging technologies; increases in the price of aircraft fuel; extended
disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC
(“Monroe”), our wholly-owned subsidiary that operates the Trainer refinery;
failure to achieve expected results or returns from our commercial relationships
with airlines in other parts of the world and the investments we have in certain
of those airlines; the effects of a significant disruption in the operations or
performance of third parties on which we rely; failure to comply with the
financial or other covenants in our financing agreements; labor-related
disruptions; the effects on our business of seasonality and other factors beyond
our control, such as changes in value in our equity investments, severe weather
conditions, natural disasters or other environmental events, including from the
impact of climate change; failure or inability of insurance to cover a
significant liability at Monroe’s refinery; failure to comply with existing and
future environmental regulations to which Monroe’s refinery operations are
subject, including those relating to the discharge of materials into the
environment, waste management, pollution prevention measures and greenhouse gas
emissions; significant damage to our reputation and brand, including from
exposure to significant adverse publicity or inability to achieve certain
sustainability goals; our ability to retain senior management and other key
employees, and to maintain our company culture; disease outbreaks or other
public health threats, and measures implemented to combat them; the effects of
terrorist attacks, geopolitical conflict or security events; competitive
conditions in the airline industry; extended interruptions or disruptions in
service at major airports where we operate; significant problems associated with
types of aircraft or engines we operate; the effects of extensive regulatory and
legal compliance requirements we are subject to; the impact of laws and
regulations governing environmental protection, including but not limited to
regulation of hazardous substances, increased regulation to reduce emissions and
other risks associated with climate change, and the cost of compliance with more
stringent environmental regulations; and unfavorable economic or political
conditions in the markets in which we operate or volatility in currency exchange
rates.
Additional information concerning risks and uncertainties that could cause
differences between actual results and forward-looking statements is contained
in our Securities and Exchange Commission (SEC) filings, including our Annual
Report on Form 10-K for the fiscal year ended December 31, 2025 and other
filings filed with the SEC from time to time. Caution should be taken not to
place undue reliance on our forward-looking statements, which represent our
views only as of the date of this press release, and which we undertake no
obligation to update except to the extent required by law.
6
Exhibit 99.1
… …
… …
… …
… …
… $ % … $ %
… … … C… … … … …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … … % $ 4… $ 3… $ 4… 12 %
… … … … % 8… 6… 1… 26 %
… … … … % 1… 7… 3… 47 %
… … … … % 5… 4… 8… 18 %
… … … 9 % 1… 1… 1… 9 %
… … … … % 1… 7… 3… 51 %
… … … … % 6… 3… 2… 72 %
… … … … % 3… 3… 2… 8 %
… … … … % 2… 2… 2… 10 %
… … … … % 2… 1… 1… 8 %
… … … 9 % 2… 1… 1… 8 %
… … … 5 % 2… 1… 88 5 %
… … … … % 1… 1… 1… 8 %
… … 9 2 % 1… 1… 14 1 %
… … … … % 8… 9… -… -… %
… … … … % 8… 5… 2… 49 %
… … … … % 4… 4… 61 15 %
… … … 3 % 1… 1… 5 — %
… … … … % 5… 4… 8… 21 %
… … … … % 3… 4… -… -… %
… … … … % -… -… 79 -… %
… … … NM -… 1… -… …
2 … 8 NM -3 -… 23 -… %
… … … … % -… -… 56 -… %
… … … NM -… 3… -… …
… … … … % 2… 4… -… -… %
… … … … % -… -… 88 -… %
$ … $ … $ … … % $ 2… $ 3… $ -… -… %
$ … $ … $ 3… $ 5…
$ … $ … $ 3… $ 5…
… … 6… 6…
… … 6… 6…
7
Exhibit 99.1
… N…
… M…
… E…
… S…
… 3…
… … $ % 2… 2… $ %
C… C… C… C…
$ … $ … $ … … % $ … $ … $ … … %
… … … … % … … … 7 %
… … … … % … … … … %
… … … … % … … … … %
$ … $ … $ … … % $ … $ … $ … … %
… N…
… M…
… E…
… S…
… 3…
… … $ % 2… 2… $ %
C… C… C… C…
$ … $ … $ … … % $ … $ … $ … … %
… … … … % … … … … %
… … … … % … … … … %
… … … … % … … … … %
$ … $ … $ … … % $ … $ … $ … … %
DELTA
AIR
LINES,
INC. Increase
Total (Decreas…
Revenue 3Q26 vs
(Unaudi… 3Q25 Unit
Revenue 3Q26 ($M) Change Revenue Yield Capacity
──────────────────────────────────────────────────────────────────────────────
Domestic $ 10,594 16% 16% 15% —%
Atlantic 3,317 11% 11% 12% —%
Latin 867 14% 22% 20% (6)%
America
Pacific 756 13% 5% 7% 8%
Passeng… $ 15,534 15% 15% 14% —%
Revenue
Cargo 301 29%
Revenue
Other 4,351 48%
Revenue
Total $ 20,186 21% 21%
Revenue
Third
Party -2,601
Refinery
Sales
Total
Revenue,
adjusted $ 17,585 16% 15%
(See
Note A)
8
Exhibit 99.1
DELTA AIR LINES, INC.
Statistical Summary
(Unaudited)
T… N…
M… M…
E… E…
S… S…
3… 3…
2… 2… C… 2… 2… C…
…
… 6… 6… 1 % 1… 1… 1 %
…
…
…
… 7… 7… — % 2… 2… 1 %
…
…
…
… 2… 1… 14 % 2… 2… 11 %
…
…
…
…
…
… 1… 1… 15 % 1… 1… 11 %
…
…
…
…
…
…
… 2… 2… 21 % 2… 2… 17 %
…
…
…
…
…
-
… 2… 1… 15 % 2… 1… 12 %
…
A
…
…
…
… 2… 1… 25 % 2… 1… 20 %
…
…
…
…
-
… 1… 1… 7… % 1… 1… 7 %
…
A
…
…
… 86 % 86 % — p… 84 % 84 % — …
…
…
… 1… 1… 1 % 3… 3… 1 %
…
…
…
…
… $ 3… $ 2… 68 % $ 3… $ 2… 49 %
…
…
…
…
…
…
… $ 3… $ 2… 60 % $ 3… $ 2… 48 %
…
-
…
…
A
9
Exhibit 99.1
DELTA AIR LINES, INC.
Consolidated Statements of
Cash Flows
(Unaudited)
(in millions) Three Months Ended
Cash Flows From Operating September 30,
Activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 756 $ 1,417
Depreciation and amortization 673 614
(Gain) loss on fair value 226 -307
investments
Changes in air traffic -460 -728
liability
Changes in profit sharing 386 392
Changes in balance sheet and 132 459
other, net
Net cash provided by operating 1,713 1,847
activities
Cash Flows From Investing
Activities:
Property and equipment
additions:
Flight equipment, including
advance -1,200 -930
payments
Ground property and equipment,
including -213 -230
technology
Acquisition of strategic
investments and -45 —
related
Other, net 155 125
Net cash used in investing -1,303 -1,035
activities
Cash Flows From Financing
Activities:
Proceeds from short-term 75 —
obligations
Proceeds from long-term — 217
obligations
Payments on debt and finance
lease -1,234 -459
obligations
Cash dividends -141 -122
Other, net -1 -6
Net cash used in financing -1,301 -370
activities
Net (Decrease)/Increase in
Cash, Cash
Equivalents and Restricted -891 442
Cash
Equivalents
Cash, cash equivalents and
restricted 4,773 3,529
cash equivalents at beginning
of period
Cash, cash equivalents and
restricted $ 3,882 $ 3,971
cash equivalents at end of
period
The following table provides a
reconciliation of cash, cash
equivalents
and restricted cash reported
within the
Consolidated Balance Sheets to
the total
of the same such amounts shown
above:
Current assets:
Cash and cash equivalents $ 3,787 $ 3,791
Restricted cash included in
prepaid 77 97
expenses and other
Other assets:
Restricted cash included in
other 18 83
noncurrent assets
Total cash, cash equivalents
and $ 3,882 $ 3,971
restricted cash equivalents
10
Exhibit 99.1
DELTA AIR
LINES, INC.
Consolidat…
Balance
Sheets
(Unaudited)
(in
millions)
ASSETS September
Current 30, December 31,
Assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 3,787 $ 4,310
equivalents
Accounts
receivable, 4,325 2,850
net
Fuel,
expendable
parts and 2,637 1,601
supplies
inventories,
net
Prepaid
expenses and 2,741 2,207
other
Total current 13,490 10,968
assets
Noncurrent
Assets:
Property and
equipment, 42,206 39,743
net
Operating
lease 6,120 6,244
right-of-use
assets
Goodwill 9,753 9,753
Identifiable
intangibles, 5,960 5,966
net
Equity 3,824 4,222
investments
Other
noncurrent 4,695 4,421
assets
Total
noncurrent 72,558 70,349
assets
Total $ 86,048 $ 81,317
assets
LIABILITIES
AND
STOCKHOLDE…
EQUITY
Current
Liabilitie…
Current
maturities of
debt and $ 3,324 $ 1,605
finance
leases
Current
maturities of 912 809
operating
leases
Air traffic 9,560 7,157
liability
Accounts 6,595 5,226
payable
Accrued
salaries and 4,550 4,906
related
benefits
Loyalty
program 5,451 4,876
deferred
revenue
Fuel card 1,100 1,100
obligation
Other accrued 2,083 1,945
liabilities
Total current 33,575 27,624
liabilities
Noncurrent
Liabilitie…
Debt and
finance 9,527 12,507
leases
Noncurrent
operating 5,072 5,353
leases
Pension,
postretireme… 3,031 3,156
and related
benefits
Loyalty
program 4,181 4,386
deferred
revenue
Deferred
income taxes, 4,232 3,444
net
Other
noncurrent 3,917 3,994
liabilities
Total
noncurrent 29,960 32,840
liabilities
Commitments
and
Contingenc…
Stockholde… 22,513 20,853
Equity:
Total
liabilities
and $ 86,048 $ 81,317
stockholde…
equity
11
Exhibit 99.1
Note A: The following tables show reconciliations of non-GAAP financial
measures. The reasons Delta uses these measures are described below.
Reconciliations may not calculate exactly due to rounding.
Delta sometimes uses information ("non-GAAP financial measures") that is derived
from the Consolidated Financial Statements, but that is not presented in
accordance with accounting principles generally accepted in the U.S. (“GAAP”).
Under the Securities and Exchange Commission rules, non-GAAP financial measures
may be considered in addition to results prepared in accordance with GAAP, but
should not be considered a substitute for or superior to GAAP results. The
tables below show reconciliations of non-GAAP financial measures used in this
release to the most directly comparable GAAP financial measures.
Forward Looking Projections.
Delta is not able to reconcile forward looking non-GAAP financial measures
without unreasonable effort because the adjusting items such as those used in
the reconciliations below will not be known until the end of the period and
could be significant.
Adjustments.
These reconciliations include certain adjustments to GAAP measures that are made
to provide comparability between the reported periods, if applicable, and for
the reasons indicated below:
Third-party refinery sales. Refinery sales to third parties, and related
expenses, are not related to our airline segment. Excluding these sales
therefore provides a more meaningful comparison of our airline operations to the
rest of the airline industry.
MTM adjustments and settlements on hedges. Mark-to-market ( " MTM") adjustments
are defined as fair value changes recorded in periods other than the settlement
period. MTM fair value changes are not necessarily indicative of the actual
settlement value of the underlying hedge in the contract settlement period, and
therefore we remove this impact to allow investors to better understand and
analyze our core performance. Settlements represent cash received or paid on
hedge contracts closed (i.e., settled) during the applicable period. With
respect to hedges related to Monroe's inventory, settlements often occur before
the related refinery inventory is sold. Beginning in 2026, settlement gains and
losses related to Monroe's inventory that remains on-hand at period end are
excluded from our adjusted results. These settlement gains and losses will be
reflected in adjusted results during the period the inventory is sold. This
change was made to match the timing of expense and revenue recognition and we
have similarly adjusted the presentation of reconciliations for prior periods
included here.
MTM adjustments on investments. Unrealized MTM gains/losses result from our
equity investments that are accounted for at fair value in non-operating
expense. The gains/losses are driven by changes in stock prices, foreign
currency fluctuations and other valuation techniques for investments in certain
companies, particularly those without publicly-traded shares. Adjusting for
these gains/losses allows investors to better understand and analyze our core
operational performance in the periods shown.
Gain/loss on extinguishment of debt. This adjustment relates to early
termination of a portion of our debt. Adjusting for these gains/losses allows
investors to better understand and analyze our core operational performance in
the periods shown.
Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"),
adjusted
Three Septem… Decemb… 3Q26 vs Septem…
(in Months 30, 31, 3Q25 % 30,
millio… Ended 2026 2025 Change 2025
──────────────────────────────────────────────────────────────────────────────
Opera… $ 20,186 $ 16,003 $ 16,673
reven…
Adjus…
for:
Third…
refin… -2,601 -1,397 -1,476
sales
Opera…
reven… $ 17,585 $ 14,606 $ 15,197 16 %
adjus…
3… …
vs …
S… T… J… D… S… J… 3… …
3… M… 3… 3… 3… 3… % %
2… E… 2… 2… 2… 2… C… …
──────────────────────────────────────────────────────────────────────────────
… 2… 2… … … …
…
…
…
…
… -… -… … … …
…
… 2… 2… … … … 15 % … %
…
Nine Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
TRASM (cents) 24.56 21.04
Adjusted for:
Third-party -2.79 -1.63
refinery sales
TRASM, adjusted 21.77 19.41
12
Exhibit 99.1
Pre-Tax Income, Net Income, and Diluted
Earnings per Share, adjusted
Three Septem… Three Septem…
Months 30, Months 30,
Ended 2026 Ended 2026
──────────────────────────────────────────────────────────────────────────────
Pre-T… Income Net Earni…
(in
mill… Per
exce… Income Tax Income Dilut…
per Share
share
data)
GAAP $ 1,074 $ -318 $ 756 $ 1.15
Adju…
for:
MTM
adju… 218
on
inve…
MTM
adju…
and 208
sett…
on
hedg…
Gain
on
exti… -2
of
debt
Non-… $ 1,497 $ -363 $ 1,134 $ 1.72
Three Three
Months Months
Ended Ended
Decem… Decem…
31, 31,
2025 2025
Pre-T… Income Net Earni…
(in
mill… Per
exce… Income Tax Income Dilut…
per Share
share
data)
GAAP $ 1,513 $ -294 $ 1,219 $ 1.86
Adju…
for:
MTM
adju… -205
on
inve…
MTM
adju…
and 3
sett…
on
hedg…
Non-… $ 1,311 $ -297 $ 1,015 $ 1.55
Three Three
Months Months
Ended Ended
Septe… Septe…
30, 30,
2025 2025
Pre-T… Income Net Earni…
(in
mill… Per
exce… Income Tax Income Dilut…
per Share
share
data)
GAAP $ 1,777 $ -360 $ 1,417 $ 2.17
Adju…
for:
MTM
adju… -311
on
inve…
MTM
adju…
and 5
sett…
on
hedg…
Loss
on
exti… 6
of
debt
Non-… $ 1,477 $ -363 $ 1,114 $ 1.70
Pre-Tax Margin, adjusted
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Pre-tax margin 5.3 % 10.7 %
Adjusted for:
Third-party 1.1 0.9
refinery sales
MTM
adjustments on 1.1 -1.9
investments
MTM
adjustments
and 1.0 —
settlements on
hedges
Pre-tax
margin, 8.5 % 9.7 %
adjusted
Operating Income, adjusted
Three Months September 30, September
(in millions) Ended 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Operating $ 1,454 $ 1,684
income
Adjusted
for:
MTM
adjustments
and 208 5
settlements
on
hedges
Operating
income, $ 1,662 $ 1,688
adjusted
13
Exhibit 99.1
Operating Margin, adjusted
Three Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Operating 7.2 % 10.1 %
margin
Adjusted for:
Third-party 1.2 1.0
refinery sales
MTM
adjustments
and 1.0 —
settlements on
hedges
Operating
margin, 9.4 % 11.1 %
adjusted
Free Cash Flow.
We present free cash flow because management believes this metric is helpful to
investors to evaluate the company's ability to generate cash that is available
for use for debt service or general corporate initiatives. Free cash flow is
also used internally as a component of our incentive compensation programs. F
ree cash flow is defined as net cash from operating activities and net cash from
investing activities, adjusted for (i) pension plan contributions, (ii) net cash
flows related to certain airport construction projects and other, and (iii)
strategic investments and related. These adjustments are made for the following
reasons:
Pension plan contributions. Cash flows related to pension funding are included
in our GAAP operating activities. We adjust to exclude these contributions to
allow investors to understand the cash flows related to our core operations.
Net cash flows related to certain airport construction projects and other. Cash
flows related to certain airport construction projects are included in our GAAP
operating activities and capital expenditures. We have adjusted for these items,
which were primarily funded by cash restricted for airport construction, to
provide investors a better understanding of the company's free cash flow and
capital expenditures that are core to our operations in the periods shown.
Strategic investments and related. Certain cash flows related to our investments
in and related transactions with other airlines and associated companies are
included in our GAAP investing activities. We adjust for this activity because
it provides a more meaningful comparison to our airline industry peers.
Three Months September 30, September
(in millions) Ended 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided by $ 1,713 $ 1,847
operating
activities
Net cash
used in -1,303 -1,035
investing
activities
Adjusted
for:
Pension plan — 6
contributio…
Net cash
flows
related to
certain 9 15
airport
construction
projects and
other
Strategic
investments 45 —
and related
Free cash $ 463 $ 833
flow
Nine Months Ended
(in millions) September 30, 2026
─────────────────────────────────────────────────────────────────────────
Net cash provided by operating activities $ 5,740
Net cash used in investing activities -4,078
Adjusted for:
Pension plan contributions 4
Net cash flows related to certain airport 83
construction projects and other
Strategic investments and related 150
Free cash flow $ 1,900
14
Exhibit 99.1
Operating Cash Flow, adjusted.
We present operating cash flow, adjusted because management believes adjusting
for the following item provides a more meaningful measure for investors:
Net cash flows related to certain airport construction projects and other. Cash
flows related to certain airport construction projects are included in our GAAP
operating activities. We adjust for these items, which were primarily funded by
cash restricted for airport construction, to provide investors a better
understanding of the company's operating cash flow that is core to our
operations in the periods shown.
Three Months September 30, September
(in millions) Ended 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided by $ 1,713 $ 1,847
operating
activities
Adjusted
for:
Net cash
flows
related to
certain 3 -31
airport
construction
projects and
other
Operating
cash flow, $ 1,716 $ 1,816
adjusted
Operating revenue, adjusted related to premium products and diverse revenue
streams
Three Months Ended
(in millions) September 30, 2026
──────────────────────────────────────────────────────────────────────────
Operating revenue $ 20,186
Adjusted for:
Third-party refinery sales -2,601
Operating revenue, adjusted $ 17,585
Less: main cabin revenue -6,802
Operating revenue, adjusted related to
premium products and diverse revenue $ 10,783
streams
Percent of operating revenue, adjusted
related to premium products and diverse 61 %
revenue streams
Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile,
("CASM-Ex")
We adjust operating expense and CASM for certain items described above, as well
as the following items and reasons described below:
Aircraft fuel and related taxes. The volatility in fuel prices impacts the
comparability of year-over-year financial performance. The adjustment for
aircraft fuel and related taxes allows investors to better understand and
analyze our non-fuel costs and year-over-year financial performance.
MRO expense. We adjust for MRO expenses because this adjustment allows investors
to better understand and analyze the airline's recurring cost performance and
provides a more meaningful comparison of our core operating costs to the airline
industry.
Profit sharing. We adjust for profit sharing because this adjustment allows
investors to better understand and analyze our recurring cost performance and
provides a more meaningful comparison of our core operating costs to the airline
industry.
Three Months September 30, September
(in millions) Ended 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Operating $ 18,732 $ 14,989
expense
Adjusted
for:
Aircraft
fuel and -4,351 -2,570
related
taxes
Third-party
refinery -2,601 -1,476
sales
MRO expense -267 -212
Profit -389 -392
sharing
Non-Fuel $ 11,125 $ 10,339
Cost
15
Exhibit 99.1
Three 3Q26 vs
Months Septemb… December 3Q25 % Septemb…
Ended 30, 2026 31, 2025 Change 30, 2025
──────────────────────────────────────────────────────────────────────────────
CASM 23.63 19.93 18.96
(cents)
Adjust…
for:
Aircra…
fuel
and -5.49 -3.26 -3.25
related
taxes
Third-…
refine… -3.28 -1.92 -1.87
sales
MRO -0.34 -0.23 -0.27
expense
Profit -0.49 -0.48 -0.50
sharing
CASM-Ex 14.03 14.03 13.08 7.3 %
Nine Months September 30, September 30,
Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
CASM (cents) 22.88 19.11
Adjusted for:
Aircraft fuel
and related -4.93 -3.30
taxes
Third-party -2.79 -1.63
refinery sales
MRO expense -0.38 -0.26
Profit sharing -0.39 -0.44
CASM-Ex 14.39 13.47
Operating Expense, adjusted
Three Months September 30, September
(in millions) Ended 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Operating $ 18,732 $ 14,989
expense
Adjusted
for:
Third-party
refinery -2,601 -1,476
sales
MTM
adjustments
and -208 -5
settlements
on
hedges
Operating
expense, $ 15,924 $ 13,508
adjusted
Total fuel expense, adjusted and Average fuel price per gallon, adjusted
Av…
Pr…
Per
Ga…
T… Th…
M… Mo…
E… En…
S… Se… % Se… Se… %
3… 30, Ch… 30, 30, Ch…
…
…
… 2… 20… 2… 20…
…
…
…
…
… $ 4… $ 2… $ 3… $ 2…
…
…
…
…
…
… -… -5 -… -…
…
…
…
…
… $ 4… $ 2… 62 % $ 3… $ 2… 60 %
…
…
Av…
Pr…
Per
Ga…
N… Ni…
M… Mo…
E… En…
S… Se… % Se… Se… %
3… 30, Ch… 30, 30, Ch…
…
…
… 2… 20… 2… 20…
…
…
…
…
… $ 1… $ 7… $ 3… $ 2…
…
…
…
…
…
… -… 19 -… 0…
…
…
…
…
… $ 1… $ 7… 49 % $ 3… $ 2… 48 %
…
…
16
Exhibit 99.1
Adjusted Net Debt.
We use adjusted gross debt, including fleet operating lease liabilities
(comprised of aircraft and engine leases and regional aircraft leases embedded
within our capacity purchase agreements) and unfunded pension liabilities (if
applicable), in addition to adjusted debt and finance leases, to present
estimated financial obligations. We reduce adjusted total debt by cash, cash
equivalents, and LGA restricted cash, resulting in adjusted net debt, to present
the amount of assets needed to satisfy the debt. Management believes this metric
is helpful to investors in assessing the company's overall debt profile.
3Q26
Septe… Decem… Septem… vs
(in 30, 31, 30, 4Q25 $
mill… 2026 2025 2025 Change
──────────────────────────────────────────────────────────────────────────────
Debt
and
fina… $ 12,851 $ 14,113 $ 14,879
lease
obli…
Plus:
sale… 1,733 1,779 1,793
fina…
liab…
Plus:
unam…
disc…
and
debt -9 -6 -1
issue
cost,
net
and
other
Adju…
debt
and $ 14,575 $ 15,885 $ 16,670
fina…
lease
obli…
Plus:
fleet
oper… 2,580 2,780 2,790
lease
liab…
Adju…
gross $ 17,155 $ 18,665 $ 19,460
debt
Less:
cash
and -3,787 -4,310 -3,791
cash
equi…
Less:
LGA -18 -56 -83
rest…
cash
Adju…
net $ 13,350 $ 14,300 $ 15,586 $ -950
debt
Gross Capital Expenditures.
We adjust capital expenditures for the following item to determine gross capital
expenditures for the reason described below:
Net cash flows related to certain airport construction projects. Cash flows
related to certain airport construction projects are included in capital
expenditures. We adjust for these items because management believes investors
should be informed that a portion of these capital expenditures from airport
construction projects are either funded with restricted cash specific to these
projects or reimbursed by a third party.
Three Months September 30, September
(in millions) Ended 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Flight
equipment,
including $ 1,200 $ 930
advance
payments
Ground
property and
equipment, 213 230
including
technology
Adjusted
for:
Net cash
flows
related to
certain -5 -47
airport
construction
projects
Gross
capital $ 1,408 $ 1,113
expenditures
17