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Delta Sets 2026 Outlook Below Wall Street as Premium Pivot Deepens, Shares Slide

Management is steering all seat growth to higher‑margin cabins to capitalize on premium demand.

Overview

  • Delta reported fourth‑quarter adjusted EPS of $1.55, slightly above estimates, on adjusted revenue of $14.61 billion that narrowly missed forecasts.
  • Guidance calls for 2026 adjusted EPS of $6.50–$7.50 and first‑quarter revenue growth of 5%–7%, below analyst midpoints and prompting a sector selloff.
  • For 2025, Delta produced about $5 billion in pre‑tax profit and a record $4.6 billion in free cash flow, noting the prolonged U.S. government shutdown and tariffs reduced earnings by roughly $0.25 per share.
  • Premium ticket revenue rose 9% in Q4 and surpassed main‑cabin revenue for the first time, and executives said essentially all planned seat growth will be in premium products; remuneration from American Express rose about 11% to more than $8 billion in 2025.
  • Delta agreed to purchase 30 Boeing 787‑10s with options for 30 more, with deliveries starting in 2031 to diversify its long‑haul fleet.