Delta Air Lines Announces December Quarter and Full Year 2025 Financial Results

2025 financial performance extends industry leadership and reflects durability

Record revenue in December quarter and full year with a double-digit return on invested capital

Accelerating momentum with 2026 earnings expected to grow 20 percent year-over-year

Strong fundamentals support March quarter revenue growth outlook of 5 to 7 percent over prior year

ATLANTA, Jan. 13, 2026 /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the December quarter and full year 2025 and provided its outlook for the March quarter and full year 2026. Highlights of the December quarter and full year 2025, including both GAAP and adjusted metrics, are on page six and incorporated here.

"The Delta team delivered a strong close to our Centennial year, demonstrating the differentiation and durability we've built. Our industry-leading performance delivered for our customers and our employees, while creating value for our owners, consistent with our long-term financial framework. We generated $5 billion of pre-tax profit with a double-digit operating margin and record free cash flow of $4.6 billion, all while navigating a challenging environment. These results would not be possible without the exceptional efforts of our people and I look forward to celebrating our team next month with $1.3 billion of well-earned profit sharing," said Ed Bastian, Delta's chief executive officer.

"2026 is off to a strong start with top-line growth accelerating on consumer and corporate demand. For the full year, we expect to deliver margin expansion and earnings growth of 20 percent year-over-year."

December Quarter 2025 GAAP Financial Results

December Quarter 2025 Non-GAAP Financial Results

Full Year 2025 GAAP Financial Results

Full Year 2025 Non-GAAP Financial Results

Financial Guidance 1

FY 2026

Long-Term Targets 3

Earnings Per Share

$6.50 - $7.50

n/a

Earnings Per Share YoY

20% at mid-point

10% average

Free Cash Flow ($B)

$3 - $4

$3 - $5

Gross Leverage 2

Approx. 2x

1Q26

Total Revenue YoY

Up 5% - 7%

Operating Margin

4.5% - 6%

Earnings Per Share

$0.50 - $0.90

1Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures

2Adjusted debt to EBITDAR

3Introduced at November 2024 Investor Day

For the full year and March quarter 2026, Delta expects non-fuel unit cost growth in line with its long-term financial framework of up low-single digits year-over-year. As outlined in the Supplemental Information found under Quarterly Results on ir.delta.com, the company is providing additional detail on its third-party Maintenance, Repair and Overhaul (MRO) business, including revenue and costs. Given its growth profile, MRO is being separated from the non-fuel unit cost metric, preserving visibility into Delta's core airline cost trends.

Revenue Environment and Outlook

"Delta generated record revenue of $58.3 billion while sustaining a unit revenue premium relative to the industry of nearly 115 percent. High-margin, diversified revenue streams grew high-single digits over prior year and reached 60 percent of total revenue, reflecting the power of Delta's brand, growing demand for our premium products and the success of our integrated commercial and customer strategy," said Glen Hauenstein, Delta's president.

"Since the start of this year, cash sales trends have accelerated on top of last year's strong performance, with momentum across the booking curve and all geographies. We expect March quarter revenue to grow 5 percent to 7 percent year-over-year, several points ahead of capacity growth."

*Corporate sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period

Cost Performance and Outlook

"With disciplined execution, we delivered non‑fuel unit cost growth of 2 percent in 2025, in line with our long‑term target of low-single digit growth," said Dan Janki, Delta's chief financial officer. "Looking ahead to 2026, we expect another year of cost performance aligned to our long-term framework on capacity growth of approximately 3 percent, as we continue to drive efficiencies while investing in our people and the customer experience."

December Quarter 2025 Cost Performance

Full Year 2025 Cost Performance

Balance Sheet, Cash and Liquidity

"After reinvesting $4.3 billion in the business in 2025, Delta generated $4.6 billion of free cash flow. Strong cash generation enabled continued debt paydown, improving gross leverage to 2.4x. We closed the year with adjusted net debt of approximately $14 billion and unencumbered assets of $35 billion, positioning Delta with the strongest balance sheet and the highest credit quality in our history," Janki said. "In 2026, strong earnings growth will enable higher operating cash flow, supporting $5.5 billion of expected reinvestment and an outlook for free cash flow of $3 to $4 billion."

*Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities

Fleet Update

Today, Delta announced it reached an agreement with Boeing to purchase thirty 787-10 widebody aircraft, with options for an additional thirty. Deliveries of the aircraft are scheduled to begin in 2031. In addition to improved fuel efficiency, these aircraft will deliver superior economics and extend our long haul capabilities. This order represents the next step in Delta's international evolution, broadening its global reach and building on a strong foundation for international growth supported by Delta's industry-leading Domestic network and joint venture partnerships in every region of the world. Delta also entered into an agreement with engine manufacturer GE Aerospace to service the GEnx engines selected for the aircraft.

"Delta is building the fleet for the future, enhancing the customer experience, driving operational improvements and providing steady replacements for less efficient, older aircraft in the decade to come," said Ed Bastian, Delta's chief executive officer. "Most importantly, these aircraft will be operated by the best aviation professionals in the industry, providing Delta's welcoming, elevated and caring service to travelers worldwide."

December Quarter and Full Year 2025 Highlights

Operations, Network and Fleet

Culture and People

Customer Experience and Loyalty

Environmental Sustainability

1FlightStats preliminary data for Delta flights system wide and Delta's network peers (AA, UA, and DL) from Jan 1 - Dec 31, 2025. On-time is defined as A0

December Quarter and Full Year 2025 Results

December quarter and full year results have been adjusted primarily for third-party refinery sales and gains/losses on investments as described in the reconciliations in Note A.

GAAP

Adjusted

GAAP

Adjusted

($ in millions except per share and unit costs)

4Q25

4Q24

4Q25

4Q24

FY25

FY24

FY25

FY24

Operating income

1,467

1,717

1,470

1,735

5,822

5,995

5,804

6,016

Operating margin

9.2 %

11.0 %

10.1 %

12.0 %

9.2 %

9.7 %

10.0 %

10.6 %

Pre-tax income

1,513

1,201

1,311

1,566

6,185

4,658

4,981

5,201

Pre-tax margin

9.5 %

7.7 %

9.0 %

10.8 %

9.8 %

7.6 %

8.5 %

9.1 %

Net income

1,219

843

1,015

1,203

5,005

3,457

3,802

3,990

Diluted earnings per share

1.86

1.29

1.55

1.85

7.66

5.33

5.82

6.16

Operating revenue

16,003

15,559

14,606

14,437

63,364

61,643

58,287

57,001

Total revenue per available seat mile (TRASM) (cents)

21.94

21.60

20.02

20.04

21.26

21.37

19.56

19.76

Operating expense

14,536

13,842

13,135

12,702

57,542

55,648

52,483

50,985

Cost per available seat mile (CASM) (cents)

19.93

19.22

14.27

13.72

19.31

19.30

13.86

13.54

Fuel expense

2,380

2,409

2,377

2,391

9,819

10,566

9,836

10,544

Average fuel price per gallon

2.28

2.36

2.28

2.34

2.30

2.57

2.30

2.56

Operating cash flow

2,260

1,894

2,211

1,782

8,342

8,025

8,316

7,994

Capital expenditures

908

1,310

877

1,238

4,499

5,140

4,333

4,834

Total debt and finance lease obligations

14,113

16,194

14,113

16,194

Adjusted net debt

14,300

17,980

14,300

17,980

About Delta Air Lines Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer.

There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,500 daily Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other.

Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by J.D. Power in 2025 year for being No. 1 in Premium Economy Passenger Satisfaction. The airline also was recognized as the top U.S. airline by the Wall Street Journal and as North America's most on-time airline in 2025 from Cirium.

We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.

Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.

As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential.

A founding member of the SkyTeam alliance and powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta's premium product line is elevated by its unique partnership with Wheels Up Experience.

Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the awards from J.D. Power and Cirium, Delta has been recognized as the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; the top carrier for business travelers by Business Travel News; and best U.S. airline by Forbes Travel Guide's Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded companies in the U.S. and the best U.S. airline by the Points Guy for the past seven years.

Forward Looking Statements

Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; our dependence on technology in our operations; increases in the cost of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), a wholly-owned subsidiary of Delta that operates the Trainer refinery; failure to receive the expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial and other covenants in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including costs related to compliance with renewable fuel standard regulations; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports at which we operate or significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of environmental regulation, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.

DELTA AIR LINES, INC.

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Year Ended

December 31,

(in millions, except per share data)

2025

2024

$ Change

% Change

2025

2024

$ Change

% Change

Operating Revenue:

Passenger

$ 12,916

$ 12,815

$ 101

1 %

$ 51,768

$ 50,894

$ 874

2 %

Cargo

246

249

(3)

(1) %

900

822

9 %

Other

2,841

2,495

346

14 %

10,696

9,927

769

8 %

Total operating revenue

16,003

15,559

444

3 %

63,364

61,643

1,721

3 %

Operating Expense:

Salaries and related costs

4,592

4,127

465

11 %

17,520

16,161

1,359

8 %

Aircraft fuel and related taxes

2,380

2,409

(29)

(1) %

9,819

10,566

(747)

(7) %

Ancillary businesses and refinery

1,604

1,333

271

20 %

5,987

5,416

571

11 %

Contracted services

1,175

1,094

7 %

4,617

4,228

389

9 %

Landing fees and other rents

914

803

111

14 %

3,564

3,150

414

13 %

Regional carrier expense

640

598

7 %

2,553

2,328

225

10 %

Passenger commissions and other selling expenses

616

620

(4)

(1) %

2,485

—

— %

Depreciation and amortization

620

635

(15)

(2) %

2,443

2,513

(70)

(3) %

Aircraft maintenance materials and outside repairs

528

626

(98)

(16) %

2,432

2,616

(184)

(7) %

Passenger service

458

449

2 %

1,855

1,788

4 %

Profit sharing

351

425

(74)

(17) %

1,337

1,389

(52)

(4) %

Aircraft rent

134

137

(3)

(2) %

542

548

(6)

(1) %

Other

524

586

(62)

(11) %

2,388

2,460

(72)

(3) %

Total operating expense

14,536

13,842

694

5 %

57,542

55,648

1,894

3 %

Operating Income

1,467

1,717

(250)

(15) %

5,822

5,995

(173)

(3) %

Non-Operating Income/(Expense):

Interest expense, net

(157)

(181)

(13) %

(679)

(747)

(9) %

Gain/(loss) on investments, net

205

(247)

452

1,212

(319)

1,531

Loss on extinguishment of debt

—

(3)

(26)

(39)

(33) %

Miscellaneous, net

(2)

(85)

(98) %

(144)

(232)

(38) %

Total non-operating income/(expense), net

(516)

562

363

(1,337)

1,700

Income Before Income Taxes

1,513

1,201

312

26 %

6,185

4,658

1,527

33 %

Income Tax Provision

(294)

(358)

(18) %

(1,180)

(1,201)

(2) %

Net Income

$ 1,219

$ 843

$ 376

45 %

$ 5,005

$ 3,457

$ 1,548

45 %

Basic Earnings Per Share

$ 1.88

$ 1.31

$ 7.72

$ 5.39

Diluted Earnings Per Share

$ 1.86

$ 1.29

$ 7.66

$ 5.33

Basic Weighted Average Shares Outstanding

649

642

648

641

Diluted Weighted Average Shares Outstanding

656

652

654

648

DELTA AIR LINES, INC.

Passenger Revenue

(Unaudited)

Three Months Ended

Year Ended

December 31,

(in millions)

2025

2024

$ Change

% Change

2025

2024

$ Change

% Change

Ticket - Main cabin

$ 5,620

$ 6,047

$ (427)

(7) %

$ 23,391

$ 24,497

$ (1,106)

(5) %

Ticket - Premium products

5,695

5,222

473

9 %

22,097

20,599

1,498

7 %

Loyalty travel awards

1,096

1,043

5 %

4,237

3,841

396

10 %

Travel-related services

505

503

— %

2,043

1,957

4 %

Passenger revenue

$ 12,916

$ 12,815

$ 101

1 %

$ 51,768

$ 50,894

$ 874

2 %

DELTA AIR LINES, INC.

Other Revenue

(Unaudited)

Three Months Ended

Year Ended

December 31,

(in millions)

2025

2024

$ Change

% Change

2025

2024

$ Change

% Change

Refinery

$ 1,397

$ 1,122

$ 275

25 %

$ 5,077

$ 4,642

$ 435

9 %

Loyalty program

854

846

1 %

3,362

3,297

2 %

Ancillary businesses

227

218

4 %

937

772

165

21 %

Miscellaneous

363

310

17 %

1,320

1,216

104

9 %

Other revenue

$ 2,841

$ 2,495

$ 346

14 %

$ 10,696

$ 9,927

$ 769

8 %

DELTA AIR LINES, INC.

Total Revenue

(Unaudited)

Increase (Decrease)

4Q25 vs 4Q24

Revenue

4Q25 ($M)

Change

Unit Revenue

Yield

Capacity

Domestic

$ 9,210

— %

2 %

1 %

Atlantic

2,048

4 %

— %

2 %

4 %

Latin America

933

(5) %

(2) %

— %

(3) %

Pacific

724

10 %

4 %

(1) %

5 %

Passenger Revenue

$ 12,916

1 %

— %

2 %

1 %

Cargo Revenue

246

(1) %

Other Revenue

2,841

14 %

Total Revenue

$ 16,003

3 %

2 %

Third Party Refinery Sales

(1,397)

Total Revenue, adjusted

$ 14,606

1.2 %

(0.1) %

DELTA AIR LINES, INC.

Statistical Summary

(Unaudited)

Three Months Ended

Year Ended

December 31,

2025

2024

Change

2025

2024

Change

Revenue passenger miles (millions)

59,861

60,387

(1)

249,578

246,145

Available seat miles (millions)

72,946

72,035

1.3

298,045

288,394

Passenger mile yield (cents)

21.58

21.22

20.74

20.68

—

Passenger revenue per available seat mile (cents)

17.71

17.79

—

17.37

17.65

(2)

Total revenue per available seat mile (cents)

21.94

21.60

21.26

21.37

(1)

TRASM, adjusted - see Note A (cents)

20.02

20.04

(0.1)

19.56

19.76

(1)

Cost per available seat mile (cents)

19.93

19.22

19.31

19.30

—

CASM-Ex - see Note A (cents)

14.27

13.72

4.0

13.86

13.54

2.4

Passenger load factor

82 %

84 %

(2)

pts

84 %

85 %

(1)

Fuel gallons consumed (millions)

1,043

1,021

4,269

4,114

Average price per fuel gallon

$ 2.28

$ 2.36

(3)

$ 2.30

$ 2.57

(10)

Average price per fuel gallon, adjusted - see Note A

$ 2.28

$ 2.34

(3)

$ 2.30

$ 2.56

(10)

DELTA AIR LINES, INC.

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

December 31,

(in millions)

2025

2024

Cash Flows From Operating Activities:

Net income

$ 1,219

$ 843

Depreciation and amortization

620

635

(Gain) loss on fair value investments

(216)

242

Change in receivables

810

273

Changes in air traffic liability

(1,008)

(1,208)

Changes in profit sharing

351

425

Changes in balance sheet and other, net

484

684

Net cash provided by operating activities

2,260

1,894

Cash Flows From Investing Activities:

Property and equipment additions:

Flight equipment, including advance payments

(609)

(970)

Ground property and equipment, including technology

(299)

(340)

Acquisition of strategic investments

(276)

—

Other, net

456

141

Net cash used in investing activities

(728)

(1,169)

Cash Flows From Financing Activities:

Payments on debt and finance lease obligations

(895)

(1,542)

Cash dividends

(122)

(96)

Other, net

Net cash used in financing activities

(1,001)

(1,590)

Net Increase/(Decrease) in Cash, Cash Equivalents and Restricted Cash Equivalents

531

(865)

Cash, cash equivalents and restricted cash equivalents at beginning of period

3,970

4,286

Cash, cash equivalents and restricted cash equivalents at end of period

$ 4,501

$ 3,421

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the same

such amounts shown above:

Current assets:

Cash and cash equivalents

$ 4,310

$ 3,069

Restricted cash included in prepaid expenses and other

135

168

Other assets:

Restricted cash included in other noncurrent assets

184

Total cash, cash equivalents and restricted cash equivalents

$ 4,501

$ 3,421

DELTA AIR LINES, INC.

Consolidated Balance Sheets

(Unaudited)

December 31,

(in millions)

2025

2024

ASSETS

Current Assets:

Cash and cash equivalents

$ 4,310

$ 3,069

Accounts receivable, net

2,850

3,224

Fuel, expendable parts and supplies inventories, net

1,601

1,428

Prepaid expenses and other

2,205

2,123

Total current assets

10,966

9,844

Property and Equipment, Net:

Property and equipment, net

39,743

37,595

Other Assets:

Operating lease right-of-use assets

6,244

6,644

Goodwill

9,753

Identifiable intangibles, net

5,966

5,975

Equity investments

4,222

2,846

Other noncurrent assets

4,291

2,715

Total other assets

30,476

27,933

Total assets

$ 81,185

$ 75,372

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current maturities of debt and finance leases

$ 1,605

$ 2,175

Current maturities of operating leases

809

763

Air traffic liability

7,157

7,094

Accounts payable

5,226

4,650

Accrued salaries and related benefits

4,906

4,762

Loyalty program deferred revenue

4,876

4,314

Fuel card obligation

1,100

Other accrued liabilities

1,988

1,812

Total current liabilities

27,667

26,670

Noncurrent Liabilities:

Debt and finance leases

12,507

14,019

Noncurrent operating leases

5,353

5,814

Pension, postretirement and related benefits

3,156

3,144

Loyalty program deferred revenue

4,386

4,512

Deferred income taxes, net

3,369

2,176

Other noncurrent liabilities

3,994

3,744

Total noncurrent liabilities

32,765

33,409

Commitments and Contingencies

Stockholders' Equity:

20,753

15,293

Total liabilities and stockholders' equity

$ 81,185

$ 75,372

Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate exactly due to rounding.

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.

Forward Looking Projections. Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as those used in the reconciliations below will not be known until the end of the period and could be significant.

Adjustments. These reconciliations include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and for the reasons indicated below:

Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.

MTM adjustments on investments. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. Unrealized gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.

MTM adjustments and settlements on hedges. MTM fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts settled during the applicable period.

Loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these losses allows investors to better understand and analyze our core operational performance in the periods shown.

Realized gain on sale of investments. This adjustment relates to gains on the sale of investments generated in adjusted results that had previously been included in GAAP results. During the September and December 2024 quarters, we sold our investment in CLEAR. Adjusting for this gain allows investors to better understand and analyze our core operational performance in the periods shown.

Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted

Three Months Ended

4Q25 vs 4Q24

% Change

(in millions)

December 31, 2025

March 31, 2025

December 31, 2024

Operating revenue

$ 16,003

$ 14,040

$ 15,559

Adjusted for:

Third-party refinery sales

(1,397)

(1,062)

(1,122)

Operating revenue, adjusted

$ 14,606

$ 12,978

$ 14,437

1.2 %

Year Ended

% Change

(in millions)

December 31, 2025

December 31, 2024

Operating revenue

$ 63,364

$ 61,643

Adjusted for:

Third-party refinery sales

(5,077)

(4,642)

Operating revenue, adjusted

$ 58,287

$ 57,001

2.3 %

Three Months Ended

% Change

December 31, 2025

December 31, 2024

TRASM (cents)

21.94

21.60

Adjusted for:

Third-party refinery sales

(1.92)

(1.56)

TRASM, adjusted

20.02

20.04

(0.1) %

Year Ended

December 31, 2025

December 31, 2024

TRASM (cents)

21.26

21.37

Adjusted for:

Third-party refinery sales

(1.70)

(1.61)

TRASM, adjusted

19.56

19.76

Pre-Tax Income, Net Income, and Diluted Earnings per Share, adjusted

Three Months Ended

December 31, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$ 1,513

$ (294)

$ 1,219

$ 1.86

Adjusted for:

MTM adjustments on investments

(205)

MTM adjustments and settlements on hedges

Non-GAAP

$ 1,311

$ (297)

$ 1,015

$ 1.55

Three Months Ended

December 31, 2024

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$ 1,201

$ (358)

$ 843

$ 1.29

Adjusted for:

MTM adjustments on investments

247

MTM adjustments and settlements on hedges

Loss on extinguishment of debt

Realized gain on sale of investments

Non-GAAP

$ 1,566

$ (363)

$ 1,203

$ 1.85

Year Ended

December 31, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$ 6,185

$ (1,180)

$ 5,005

$ 7.66

Adjusted for:

MTM adjustments on investments

(1,212)

MTM adjustments and settlements on hedges

(17)

Loss on extinguishment of debt

Non-GAAP

$ 4,981

$ (1,179)

$ 3,802

$ 5.82

Year Ended

December 31, 2024

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$ 4,658

$ (1,201)

$ 3,457

$ 5.33

Adjusted for:

MTM adjustments on investments

319

MTM adjustments and settlements on hedges

Loss on extinguishment of debt

Realized gain on sale of investments

164

Non-GAAP

$ 5,201

$ (1,212)

$ 3,990

$ 6.16

Pre-Tax Margin, adjusted

Three Months Ended

December 31, 2025

December 31, 2024

Pre-tax margin

9.5 %

7.7 %

Adjusted for:

Third-party refinery sales

0.8

MTM adjustments on investments

(1.3)

1.6

MTM adjustments and settlements on hedges

—

0.1

Realized gain on sale of investments

—

0.6

Pre-tax margin, adjusted

9.0 %

10.8 %

Year Ended

December 31, 2025

December 31, 2024

Pre-tax margin

9.8 %

7.6 %

Adjusted for:

Third-party refinery sales

0.7

MTM adjustments on investments

(1.9)

0.5

Loss on extinguishment of debt

—

0.1

Realized gain on sale of investments

—

0.3

Pre-tax margin, adjusted

8.5 %

9.1 %

Free Cash Flow. We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive compensation programs. Free cash flow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) pension plan contributions, (ii) net cash flows related to certain airport construction projects and (iii) strategic investments and related. These adjustments are made for the following reasons:

Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations.

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are core to our operations in the periods shown.

Strategic investments and related. Certain cash flows related to our investments in and related transactions with other airlines and associated companies are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers.

Three Months Ended

(in millions)

December 31, 2025

Net cash provided by operating activities

$ 2,260

Net cash used in investing activities

(728)

Adjusted for:

Pension plan contributions

Net cash flows related to certain airport construction projects and other

(18)

Strategic investments and related

276

Free cash flow

$ 1,797

Year Ended

(in millions)

December 31, 2025

Net cash provided by operating activities

$ 8,342

Net cash used in investing activities

(4,186)

Adjusted for:

Pension plan contributions

Net cash flows related to certain airport construction projects and other

141

Strategic investments and related

276

Free cash flow

$ 4,643

Operating Income, adjusted

Three Months Ended

(in millions)

December 31, 2025

December 31, 2024

Operating income

$ 1,467

$ 1,717

Adjusted for:

MTM adjustments and settlements on hedges

Operating income, adjusted

$ 1,470

$ 1,735

Year Ended

(in millions)

December 31, 2025

December 31, 2024

Operating income

$ 5,822

$ 5,995

Adjusted for:

MTM adjustments and settlements on hedges

(17)

Operating income, adjusted

$ 5,804

$ 6,016

Operating Margin, adjusted

Three Months Ended

December 31, 2025

December 31, 2024

Operating margin

9.2 %

11.0 %

Adjusted for:

Third-party refinery sales

0.9

MTM adjustments and settlements on hedges

—

0.1

Operating margin, adjusted

10.1 %

12.0 %

Year Ended

December 31, 2025

December 31, 2024

Operating margin

9.2 %

9.7 %

Adjusted for:

Third-party refinery sales

0.8

Operating margin, adjusted

10.0 %

10.6 %

Operating Cash Flow, adjusted. We present operating cash flow, adjusted because management believes adjusting for the following item provides a more meaningful measure for investors:

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities. We adjust for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's operating cash flow that is core to our operations in the periods shown.

Three Months Ended

(in millions)

December 31, 2025

December 31, 2024

Net cash provided by operating activities

$ 2,260

$ 1,894

Adjusted for:

Net cash flows related to certain airport construction projects and other

(48)

(111)

Operating cash flow, adjusted

$ 2,211

$ 1,782

Year Ended

(in millions)

December 31, 2025

December 31, 2024

Net cash provided by operating activities

$ 8,342

$ 8,025

Adjusted for:

Net cash flows related to certain airport construction projects and other

(25)

(31)

Net cash provided by operating activities, adjusted

$ 8,316

$ 7,994

Adjusted Debt to Earnings Before Interest, Taxes, Depreciation, Amortization and Rent ("EBITDAR"). We present adjusted debt to EBITDAR ("gross leverage") because management believes this metric is helpful to investors in assessing the company's overall debt profile. Adjusted debt includes total operating lease liabilities (including fleet, ground and other) and sale-leaseback financing liabilities. We calculate EBITDAR by adding depreciation and amortization to operating income, adjusted and adjusting for the fixed portion of operating lease expense.

(in millions)

December 31, 2025

December 31, 2024

Debt and finance lease obligations

$ 14,113

$ 16,194

Plus: operating lease liabilities

6,162

6,564

Plus: sale-leaseback financing liabilities

1,779

1,835

Plus: unamortized discount/(premium) and debt issue cost, net and other

(6)

Adjusted debt

$ 22,047

$ 24,619

Year Ended

(in millions)

December 31, 2025

December 31, 2024

GAAP operating income

$ 5,822

$ 5,995

Adjusted for:

MTM adjustments and settlements on hedges

(17)

Operating income, adjusted

5,804

6,016

Adjusted for:

Depreciation and amortization

2,443

2,513

Fixed portion of operating lease expense

979

974

EBITDAR

$ 9,226

$ 9,503

Adjusted Debt to EBITDAR

2.4x

2.6x

After-tax Return on Invested Capital ("ROIC"). We present after-tax return on invested capital as management believes this metric is helpful to investors in assessing the company's ability to generate returns using its invested capital. Return on invested capital is tax-effected adjusted operating income (using our effective tax rate for each respective period) divided by average adjusted invested capital. Average stockholders' equity and average adjusted gross debt are calculated using amounts as of the end of the current period and comparable period in the prior year. All adjustments to calculate ROIC are intended to provide a more meaningful comparison of our results to comparable companies.

Interest expense included in aircraft rent. This adjustment relates to interest expense related to operating lease transactions. Adjusting for these results allows investors to better understand our core operational performance in the periods shown as it neutralizes the effect of lease financing structure.

Year Ended

(in millions)

December 31, 2025

Operating income

$ 5,822

Adjusted for:

MTM adjustments and settlements on hedges

(17)

Interest expense included in aircraft rent

140

Adjusted operating income

$ 5,944

Tax effect

(1,404)

Tax-effected adjusted operating income

$ 4,540

Average stockholders' equity

$ 18,023

Average adjusted gross debt

19,949

Average adjusted invested capital

$ 37,972

After-tax Return on Invested Capital

12.0 %

Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex")

We adjust operating expense and CASM for certain items described above, as well as the following items and reasons described below:

Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance.

Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

As described above, beginning in the March quarter 2026, we will also adjust CASM for the following item:

MRO expense. We adjust for MRO expenses because this adjustment allows investors to better understand and analyze the airline's recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Three Months Ended

(in millions)

December 31, 2025

Operating expense

$ 14,536

Adjusted for:

Aircraft fuel and related taxes

(2,380)

Third-party refinery sales

(1,397)

Profit sharing

(351)

Non-Fuel Cost

$ 10,408

Year Ended

(in millions)

December 31, 2025

Operating Expense

$ 57,542

Adjusted for:

Aircraft fuel and related taxes

(9,819)

Third-party refinery sales

(5,077)

Profit sharing

(1,337)

Non-Fuel Cost

$ 41,310

Three Months Ended

4Q25 vs 4Q24

% Change

December 31, 2025

March 31, 2025

December 31, 2024

CASM (cents)

19.93

19.69

19.22

Adjusted for:

Aircraft fuel and related taxes

(3.26)

(3.52)

(3.34)

Third-party refinery sales

(1.92)

(1.55)

(1.56)

Profit sharing

(0.48)

(0.18)

(0.59)

CASM-Ex

14.27

14.44

13.72

4.0 %

MRO expense

(0.20)

CASM-Ex, excluding MRO expense

14.23

Year Ended

% Change

December 31, 2025

December 31, 2024

CASM (cents)

19.31

19.30

Adjusted for:

Aircraft fuel and related taxes

(3.29)

(3.66)

Third-party refinery sales

(1.70)

(1.61)

Profit sharing

(0.45)

(0.48)

CASM-Ex

13.86

13.54

2.4 %

MRO expense

(0.25)

(0.21)

CASM-Ex, excluding MRO expense

13.61

13.33

2.1 %

Operating revenue, adjusted related to premium products and diverse revenue streams

Three Months Ended

% Change

(in millions)

December 31, 2025

December 31, 2024

Operating revenue

$ 16,003

$ 15,559

Adjusted for:

Third-party refinery sales

(1,397)

(1,122)

Operating revenue, adjusted

$ 14,606

$ 14,437

Less: main cabin revenue

(5,620)

(6,047)

Operating revenue, adjusted related to premium products and diverse revenue streams

$ 8,986

$ 8,390

7 %

Year Ended

% Change

(in millions)

December 31, 2025

December 31, 2024

Operating revenue

$ 63,364

$ 61,643

Adjusted for:

Third-party refinery sales

(5,077)

(4,642)

Operating revenue, adjusted

$ 58,287

$ 57,001

Less: main cabin revenue

(23,391)

(24,497)

Operating revenue, adjusted related to premium products and diverse revenue streams

$ 34,896

$ 32,504

7 %

Percent of operating revenue, adjusted related to premium products and diverse revenue streams

60 %

57 %

Operating Expense, adjusted

Three Months Ended

(in millions)

December 31, 2025

December 31, 2024

Operating expense

$ 14,536

$ 13,842

Adjusted for:

Third-party refinery sales

(1,397)

(1,122)

MTM adjustments and settlements on hedges

(3)

(17)

Operating expense, adjusted

$ 13,135

$ 12,702

Year Ended

(in millions)

December 31, 2025

December 31, 2024

Operating expense

$ 57,542

$ 55,648

Adjusted for:

Third-party refinery sales

(5,077)

(4,642)

MTM adjustments and settlements on hedges

(21)

Operating expense, adjusted

$ 52,483

$ 50,985

Total fuel expense, adjusted and Average fuel price per gallon, adjusted

Average Price Per Gallon

Three Months Ended

December 31,

% Change

December 31,

% Change

(in millions, except per gallon data)

2025

2024

2025

2024

Total fuel expense

$ 2,380

$ 2,409

$ 2.28

$ 2.36

Adjusted for:

MTM adjustments and settlements on hedges

(3)

(17)

—

(0.02)

Total fuel expense, adjusted

$ 2,377

$ 2,391

(1) %

$ 2.28

$ 2.34

(3) %

Average Price Per Gallon

Year Ended

December 31,

% Change

December 31,

% Change

(in millions, except per gallon data)

2025

2024

2025

2024

Total fuel expense

$ 9,819

$ 10,566

$ 2.30

$ 2.57

Adjusted for:

MTM adjustments and settlements on hedges

(21)

—

(0.01)

Total fuel expense, adjusted

$ 9,836

$ 10,544

(7) %

$ 2.30

$ 2.56

(10) %

Gross Capital Expenditures. We adjust capital expenditures for the following item to determine gross capital expenditures for the reason described below:

Net cash flows related to certain airport construction projects. Cash flows related to certain airport construction projects are included in capital expenditures. We adjust for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either funded with restricted cash specific to these projects or reimbursed by a third party.

Three Months Ended

(in millions)

December 31, 2025

December 31, 2024

Flight equipment, including advance payments

$ 609

$ 970

Ground property and equipment, including technology

299

340

Adjusted for:

Net cash flows related to certain airport construction projects

(30)

(73)

Gross capital expenditures

$ 877

$ 1,238

Year Ended

(in millions)

December 31, 2025

December 31, 2024

Flight equipment, including advance payments

$ 3,521

$ 3,914

Ground property and equipment, including technology

978

1,226

Adjusted for:

Net cash flows related to certain airport construction projects

(167)

(306)

Gross capital expenditures

$ 4,333

$ 4,834

Adjusted Net Debt. We use adjusted gross debt, including fleet operating lease liabilities (comprised of aircraft and engine leases and regional aircraft leases embedded within our capacity purchase agreements) and unfunded pension liabilities (if applicable), in addition to adjusted debt and finance leases, to present estimated financial obligations. We reduce adjusted total debt by cash, cash equivalents, and LGA restricted cash, resulting in adjusted net debt, to present the amount of assets needed to satisfy the debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile.

(in millions)

December 31, 2025

December 31, 2024

$ Change

Debt and finance lease obligations

$ 14,113

$ 16,194

Plus: sale-leaseback financing liabilities

1,779

1,835

Plus: unamortized discount/(premium) and debt issue cost, net and other

(6)

Adjusted debt and finance lease obligations

$ 15,885

$ 18,055

Plus: fleet operating lease liabilities

2,780

3,178

Adjusted gross debt

$ 18,665

$ 21,234

Less: cash and cash equivalents

(4,310)

(3,069)

Less: LGA restricted cash

(56)

(184)

Adjusted net debt

$ 14,300

$ 17,980

$ (3,680)

SOURCE Delta Air Lines