Delta Air Lines (DAL) Stock: Falls as Delta Unveils Record Revenue and $4.6B Free Cash Flow

TLDR

• DAL slips 1.58% near $69.90 even as record revenue and cash flow impress
• Strong 2026 guidance signals margin expansion and steady top-line growth
• Premium cabins, loyalty revenue, and corporate travel fuel earnings strength
• $4.6B free cash flow supports debt reduction and balance sheet resilience
• Boeing 787-10 order sharpens long-haul strategy and future efficiency gains

Delta Air Lines (DAL) traded lower after the company reported record revenue and strong free cash flow for 2025. The stock moved around $69.90 and fell 1.58%, yet the airline issued firm guidance for 2026.

Delta Air Lines, Inc., DAL

DAL maintained steady operational trends and highlighted expanding demand across premium and corporate segments.

Record 2025 Results and Updated 2026 Guidance

DAL posted solid December-quarter results and advanced its full-year performance across revenue and margins. The airline reported $16 billion in quarterly operating revenue and maintained balanced income metrics despite market volatility. DAL confirmed that its 2026 earnings outlook signals continued margin expansion and stronger top-line growth.

The company ended 2025 with $63.4 billion in GAAP revenue and improved operating income. It also delivered $4.6 billion in free cash flow, and DAL used this strength to reduce debt. Capacity trends remained stable, and the airline benefited from diversified revenue channels across loyalty, premium services and MRO.

DAL expects 2026 earnings per share between $6.50 and $7.50. The company also projects revenue growth of 5% to 7% for the March quarter. Management targets low-single-digit non-fuel unit cost growth, and the airline continues to align spending with long-term cost frameworks.

Revenue Gains Driven by Premium Demand and Loyalty Growth

DAL generated $58.3 billion in adjusted revenue, supported by high-margin segments. Premium cabins, cargo and MRO each expanded, and loyalty revenue rose as co-brand credit card spending reached new highs. Growth remained broad, and DAL sustained a clear unit revenue advantage over the broader sector.

Corporate travel strengthened across all industries during the December quarter. Demand increased in banking, consumer services and media, and DAL saw momentum across long-haul markets. International performance improved for transatlantic and Pacific routes, and profitability ranked among the airline’s best years.

Cash sales accelerated early in 2026 and outpaced capacity trends. DAL reported that booking strength supported consistent revenue visibility. The company also noted that travel volumes remained stable across domestic and international networks.

Costs, Balance Sheet and Fleet Strategy Support Long-Term Plan

DAL managed non-fuel unit cost growth near its targeted range. Fuel expenses declined year over year, and efficiency gains offset broader operating pressures. The airline continued to streamline core operations while maintaining investments in technology and customer services.

The company finished 2025 with $14.3 billion in adjusted net debt. Strong cash generation supported reinvestment and further deleveraging, and DAL increased liquidity to $7.4 billion. Free cash flow strength remained central to its strategy and aligned with ongoing capital planning.

DAL advanced its fleet program with an order for thirty Boeing 787-10 aircraft. The aircraft will boost fuel efficiency and extend long-haul capabilities, and deliveries begin in 2031. This move strengthened the airline’s long-term network plans and supported continued international expansion.

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