NEW YORK, Jan 14, 2026, 14:40 EST — Regular session
- Delta shares dropped roughly 2% after the company issued a cautious profit forecast for 2026
- Carrier forecasted adjusted EPS between $6.50 and $7.50 for 2026, alongside $3 billion to $4 billion in free cash flow
- A filing reveals Delta has committed to purchasing 30 Boeing 787-10s, plus options for an additional 30, with deliveries set to begin in 2031
Shares of Delta Air Lines, Inc. (DAL) dropped roughly 2% to $67.97 in Wednesday afternoon trading, extending losses following the airline’s annual outlook and fleet update released the day before. United Airlines, American Airlines, and Southwest Airlines also saw declines.
This is significant as Delta stands among the first big U.S. carriers to lay out a specific profit forecast for the coming year. Investors are treating this as a gauge for demand’s strength heading into 2026 and spotting where pricing leverage might be slipping.
Airlines continue to make a profit on premium seats, yet economy tickets keep planes full. The market’s weighing if this balance will tilt back or hold steady.
Delta reported an adjusted $1.55 per share for the December quarter, with adjusted operating revenue hitting $14.6 billion. The airline expects full-year 2026 adjusted earnings per share between $6.50 and $7.50, alongside free cash flow of $3 billion to $4 billion after capital expenditures. It also anticipates March-quarter revenue growth of 5% to 7%. “2026 is off to a strong start,” said CEO Ed Bastian. (Delta Air Lines)
Delta has been upfront about where demand is lagging. Main-cabin ticket revenue dropped 7% in the December quarter, even as premium product revenue climbed 9%. CEO Ed Bastian noted that “the lower-end consumer is struggling.” Executives said a rebound in main-cabin demand will be crucial to hit the upper end of their 2026 forecast. (Reuters)
A filing revealed that Delta struck a deal on Jan. 12 to buy 30 Boeing 787-10 planes, plus an option for 30 additional jets. Deliveries are scheduled to start in 2031, and the aircraft will be powered by GEnx engines from General Electric, the filing noted. (SEC)
The sell-off unfolded alongside broader U.S. market losses, led by banks and tech stocks, while oil prices climbed. Rising crude costs often push up jet fuel prices, a key variable in airline profit margins. (Reuters)
Delta’s situation isn’t one-sided. It’s counting on wealthier leisure travelers and business flyers to sustain strong yields, but that reliance could backfire quickly if the economy slows or firms tighten travel spending.
Fuel remains a wild card. A sudden spike can squeeze earnings before fares adjust, and airlines usually delay passing on those costs to avoid losing passengers.
Delta President Glen Hauenstein pointed to the standard cabin as the key pressure point. “That’s just how the math has to work,” he said during the company’s earnings call, according to a transcript cited by Investopedia, highlighting the need for main-cabin fares to increase over time. (Investopedia)
Investors now turn their attention to the broader sector, beginning with American Airlines’ Q4 and full-year 2025 earnings call scheduled for Jan. 27 at 7:30 a.m. CT. (American Airlines Newsroom)
