Revenue beats, earnings in-line
Growing demand for premium
In the December quarter, Delta’s diverse revenue streams saw high-single-digit growth from the previous year, reflecting strong demand for premium products. Premium revenue grew 9% in Q4 while loyalty travel awards were up 5%. Although cargo revenue dipped 1%, other revenue was up 14%.
In Q4, passenger revenue inched up 1% as domestic revenue remained flat YoY. Within international, Pacific saw 10% growth and Atlantic saw a 4% gain but Latin America was down 5%. Corporate sales witnessed high-single-digits increase in Q4, with broad-based growth across every sector.
In the December quarter, unit revenue was up 2% on a 1.3% rise in capacity. Passenger revenue per available seat mile (PRASM) remained flat while passenger load factor stood at 82%. CASM-Ex was up 4% while average price per fuel gallon was $2.28.
Outlook
Delta is seeing top line growth continue to gain pace supported by demand. For the first quarter of 2026, it expects total revenue to grow 5-7% YoY and EPS to range between $0.50-0.90. For fiscal year 2026, EPS is expected to be $6.50-7.50, representing a growth of 20% at the midpoint.