Delta Air Lines reported financial results for the quarter ended September 30, 2026, highlighting record revenue and resilience in a high-cost environment. The company generated $1.9 billion of free cash flow year-to-date and $463 million in the quarter. Adjusted operating income for the September quarter was $1.7 billion with an operating margin of 9.4 percent.
For the quarter, Delta reported adjusted operating revenue of $17.6 billion, a 16 percent increase over the prior year. This performance was driven by broad demand strength and healthy yield growth. Adjusted total unit revenue (TRASM) grew 15 percent year-over-year. Domestic unit revenue increased 16 percent, while international unit revenue grew 12 percent, led by a 22 percent improvement in Latin America.
The company noted that diversified revenue streams accounted for 61 percent of total revenue in the quarter. Premium revenue grew 18 percent, cargo revenue increased 29 percent, and maintenance, repair, and overhaul (MRO) revenue grew 28 percent. Additionally, total loyalty revenue grew 18 percent, supported by double-digit growth in American Express remuneration.
Regarding costs, adjusted fuel expense for the quarter was $4.1 billion, an increase of 62 percent year-over-year. Adjusted fuel price was $3.61 per gallon. Non-fuel unit costs increased 7.3 percent year-over-year on flat capacity. Delta expects non-fuel unit cost growth to improve 1 to 2 points sequentially in the December quarter.
Delta provided guidance for the December quarter, projecting total revenue growth of approximately 20 percent over last year. The company expects earnings per share of $1.15 to $1.65 for the quarter, based on a projected all-in fuel price of approximately $4.25 per gallon. For the full year 2026, Delta expects earnings per share of $5.10 to $5.60 and free cash flow of approximately $2.5 billion.
On the balance sheet, Delta reported adjusted net debt of $13.4 billion at September quarter end, a reduction of $950 million from the end of 2025. The company plans to pay down more than $2 billion of debt in 2026 and expects to end the year with gross leverage of approximately 2.2 times.
Delta also announced several strategic initiatives, including a new partnership with Hyatt to expand the SkyMiles loyalty ecosystem and the establishment of a Chief Data Officer position to advance data and AI capabilities. The carrier took delivery of 13 aircraft in the quarter, including A350-900, A321neo, and A220-300 models.
