Delta Air Lines (DAL) 4Q 2025 earnings

Delta AirlinesCEO Ed Bastian said earnings could rise more than 20% this year from 2025, potentially hitting a record, thanks to strong travel demand, especially at the top end of the market.

Delta on Tuesday forecast adjusted earnings per share of $6.50 to $7.50 this year, compared with analysts’ forecast of $7.25 per share.

The airline, which was the first to report quarterly results this year, is forecasting an increase in sales of up to 7% in the first three months of 2026 and adjusted earnings of between 50 cents per share and 90 cents per share for the first quarter, compared with forecasts of 72 cents per share from analysts surveyed by LSEG.

Bastian said Delta sits at the top of the “K” in the so-called K-shaped economy, with more revenue coming from high-spending customers.

“We’re looking at our seat growth over the next year. … Actually, none of our growth in seats will be in the main cabin; almost all of it will be in the premium sector,” Bastian told reporters.

While main cabin ticket revenue fell 7% to $5.62 billion in the fourth quarter from a year earlier, premium ticket revenue for seats at the front of the aircraft increased 9% to nearly $5.7 billion, outpacing the standard coach class and exceeding Delta’s forecast for this year. For the full year, main cabin revenue was still higher than premium classes.

Delta said bookings from both leisure customers and corporate travelers were strong in the first few days of the year. The airline also started 2025 expecting a record year, but lowered its forecasts after President Donald Trump imposed tariffs early last year and the longest government shutdown, which ended in late November, disrupted air travel and dropped bookings.

Bastian struck a more cautious tone this year, telling reporters: “We will not predict or commit to record earnings [forecast] “Until we understand the uncertainty,” he said.

“I think we are well aware of the risk factors,” he said. “I think about it last year and again this year… [will] “Be more about the geopolitical environment, whether it’s international or domestic politics.”

Here’s how the company performed in the fourth quarter compared to Wall Street’s expectations, based on LSEG’s consensus estimates:

• Earnings per share: $1.55 vs expected $1.53
• Revenues: $14.61 billion compared to $14.69 billion expected

Even with its reduced forecast, Delta reported fourth-quarter profit of $1.22 billion, or $1.86 per share; This figure is up nearly 45% from the previous year, generating $16 billion in revenue by 2025, up 3% from the previous year. Adjusting for one-time items, Delta reported earnings of $1.02 billion, or $1.55 per share, slightly above estimates.

Bastian said premium product growth continues the current trend, outpacing main cabin sales growth.

Delta also said it would purchase 30 units on Tuesday Boeing’s 787-10 Dreamliners, the US manufacturer’s first long-haul aircraft, as sales of larger jets increase.

Delta made the Airbus A350 its main long-haul aircraft almost a decade ago and later increased its reliance on the European planemaker when it retired its Boeing 777s during the pandemic. Delta said deliveries will begin in 2031; It’s the latest sign of how airlines are grabbing delivery space over the next decade.

The carrier has an option to buy 30 more 787-10s from Boeing.