- Company name
- Delta Air Lines
- Sector
- Airline
- About
- Delta Air Lines flies passengers and cargo in the United States and to more than 300 destinations on six continents, with up to 5,500 daily flights of Delta and Delta Connection. It has about 100,000 employees and served more than 200 million customers in 2025. Its main hubs and markets include Atlanta, Detroit, Minneapolis-St. Paul, Salt Lake City, Seattle, Los Angeles, Boston and New York. Delta also earns revenue from premium cabins, its SkyMiles loyalty program and its co-brand credit cards with American Express, cargo, and maintenance, repair and overhaul (MRO) work for other airlines. In Q3 2026, these other revenue streams gave 61% of total revenue. Delta owns a refinery through its Monroe subsidiary and holds equity stakes in airlines and airline groups such as LATAM, Air France-KLM, Grupo Aeromexico, Hanjin KAL and WestJet. Its shares trade on the New York Stock Exchange. The head office is in Atlanta. Ed Bastian is Chief Executive Officer.
- Thesis
- Delta trades above its intrinsic value because investors pay for its strong brand, its premium and loyalty revenue and its record of profits in a cyclical industry. In 2026, fuel costs rose sharply. The adjusted fuel price was $3.61 per gallon in Q3 2026, 60% more than a year earlier, and Delta expects about $6 billion of higher fuel costs for the year. Delta cut capacity growth and acted to recover the higher costs, and adjusted revenue rose 16% in Q3 2026. But it cut its 2026 adjusted EPS outlook to $5.10 to $5.60, from $6.50 to $7.50. For the shares to earn this price, three things must be true. Revenue must keep growing faster than costs while fuel prices stay high. Premium, loyalty and American Express revenue must keep growing, with American Express remuneration of more than $9 billion in 2026. Delta must keep paying down debt toward gross leverage of about 1 times. The Q4 2026 report and the 2027 outlook, expected in mid-January 2027, are the next test. A fall in demand or higher fuel prices can make the premium hard to keep.
- Risks
- Fuel is a large cost. The adjusted fuel price rose 60% in Q3 2026, and Delta expects about $6 billion of higher fuel costs in 2026. A further rise in fuel prices can cut earnings fast, although its refinery gives a partial offset.
Air travel demand falls in a recession. Lower demand from consumers and companies can reduce fares and load factors, while most airline costs stay fixed in the short term.
Delta has aircraft purchase commitments of about $26.7 billion at September 30, 2026, including 100 Boeing 737-10 aircraft. Late deliveries or higher costs can delay growth and raise capital spending.
Salaries and profit sharing are large costs. New union contracts and profit sharing, with nearly $900 million accrued in the first nine months of 2026, can raise costs.
Storms, air traffic control problems and IT failures can disrupt operations. In Q3 2026, summer storms reduced capacity by nearly one point.
- Balance sheet
- Cash: $3.8B
Debt: $12.9B
Net debt: $9.1B
Undrawn credit line: $3.1B
Debt due within 12 months: $3.3B
Delta funds itself with cash flow, unsecured notes, secured debt and leases. At September 30, 2026, cash and cash equivalents were $3,787 million. Total debt and finance lease obligations were $12,851 million, $2,028 million less than a year earlier: $3,324 million due within one year and $9,527 million after that. Adjusted net debt, which adds aircraft operating leases and subtracts cash, was $13.4 billion, $950 million less than at the end of 2025. Liquidity was $6.9 billion, including $3.1 billion of undrawn revolving credit. On November 6, 2026, Delta issued $500 million of 5.500% notes due 2029. In the first nine months of 2026, Delta paid $393 million of dividends and bought back no shares; its $1.0 billion repurchase program runs to June 30, 2028. There were 657,912,380 shares at September 30, 2026. Delta expects to pay down more than $2 billion of debt in 2026 and to end the year with gross leverage of about 2.2 times adjusted EBITDAR. The quarterly dividend is $0.215 per share.
As of Sep 30, 2026.
- Checkpoints
- Oct 9, 2026: Q3 2026 results and the fuel cost impact. Failed. Watch: Adjusted EPS in line with a year earlier and a kept 2026 outlook pass; a lower 2026 EPS outlook fails. Outcome: Adjusted EPS was $1.72, against $1.70 a year earlier, but Delta lowered its 2026 adjusted EPS outlook to $5.10 to $5.60 because of higher fuel costs.
Jan 9, 2027 (estimate): Q4 2026 results and the 2027 outlook. Pending. Watch: 2026 adjusted EPS within $5.10 to $5.60 and a 2027 outlook for higher EPS pass; EPS below the range fails.
2027 (estimate): Debt reduction toward the leverage target. Pending. Watch: Gross leverage below 2 times adjusted EBITDAR by the end of 2027 passes; higher leverage fails.
- Recent events
- Nov 6, 2026: Delta completed a public offering of $500 million of 5.500% notes due 2029.
Oct 9, 2026: Delta reported Q3 2026 results. Adjusted revenue rose 16% to a record $17.6 billion, and adjusted EPS was $1.72, against $1.70 a year earlier. GAAP EPS was $1.15. The adjusted fuel price rose 60% to $3.61 per gallon. Delta expects Q4 2026 revenue growth of about 20% and adjusted EPS of $1.15 to $1.65, and it lowered its 2026 adjusted EPS outlook to $5.10 to $5.60 and free cash flow to about $2.5 billion.
Jul 10, 2026: Delta reported Q2 2026 results. Adjusted EPS was $1.56, and adjusted pre-tax income was $1.4 billion, although fuel expense was the highest of any quarter in its history. Delta kept its 2026 outlook of adjusted EPS of $6.50 to $7.50 and raised the quarterly dividend by 15% to $0.215 per share from the September quarter.
Jun 11, 2026: Delta signed a new $2.65 billion revolving credit facility with a 3-year tranche and a 5-year tranche, which replaced its credit agreement of November 2023. The facility was undrawn.
Apr 8, 2026: Delta reported Q1 2026 results. Adjusted EPS was $0.64, and the GAAP loss was $0.44 per share. Because fuel prices rose sharply, Delta reduced its capacity growth and acted to recover the higher costs.
Jan 13, 2026: Delta reported 2025 results. Adjusted revenue was $58.3 billion, adjusted EPS was $5.82 and GAAP EPS was $7.66. Free cash flow was a record $4.6 billion. Delta expected 2026 adjusted EPS of $6.50 to $7.50.