Delta(US:DAL)2026-01-13 11:30Financial Performance - Delta Air Lines reported record operating revenue of $63.4 billion for the full year 2025, a 2.3% increase over 2024, with an operating margin of 9.2%[9]. - The company generated a pre-tax profit of $6.2 billion for the full year 2025, with earnings per share of $7.66[9]. - Delta expects earnings growth of 20% year-over-year for 2026, with earnings per share projected between $6.50 and $7.50[7]. - For the March quarter 2026, Delta anticipates total revenue growth of 5% to 7% year-over-year, supported by strong consumer and corporate demand[11]. - Delta's diversified revenue streams grew 7% in 2025, accounting for 60% of total revenue, with premium revenue increasing by 7% and cargo revenue by 9%[13]. - Delta Air Lines reported operating revenue of $16,003 million for Q4 2025, a 3% increase from $15,559 million in Q4 2024[37]. - The airline's net income for Q4 2025 was $1,219 million, representing a 45% increase compared to $843 million in Q4 2024[37]. - Operating income decreased to $1,467 million in Q4 2025, down 15% from $1,717 million in Q4 2024[37]. - The operating margin for Q4 2025 was 9.2%, down from 11.0% in Q4 2024[36]. - Total revenue for Q4 2025 reached $16,003 million, reflecting a 3% increase compared to $15,548 million in Q4 2024[43]. - Net income for Q4 2025 was $1,219 million, up from $843 million in Q4 2024[47]. - Operating revenue for the three months ended December 31, 2025, was $16,003 million, an increase from $15,559 million in the same period of 2024, reflecting a growth of 2.8%[56]. - Adjusted operating revenue for the year ended December 31, 2025, was $58,287 million, up 2.3% from $57,001 million in 2024[56]. - Total operating revenue for the year ended December 31, 2025, reached $63,364 million, reflecting a year-over-year increase from $61,643 million[77]. Cost and Expenses - The company reported a non-fuel unit cost growth of 2% in 2025, in line with its long-term target of low-single digit growth[11]. - Total operating expenses increased by 5% to $14,536 million in Q4 2025, compared to $13,842 million in Q4 2024[37]. - Total fuel expense for the year ended December 31, 2025, was $9,819 million, a decrease of 7% from $10,566 million in 2024[79]. - Non-fuel costs for the year ended December 31, 2025, totaled $41,310 million, adjusted for various factors including aircraft fuel and profit sharing[75]. - The cost per available seat mile (CASM) for the year was 19.31 cents, with an adjusted CASM-Ex of 13.86 cents, showing a 2.4% increase from the previous year[76]. Cash Flow and Debt - The company achieved record free cash flow of $4.6 billion in 2025, with strong cash generation enabling continued debt paydown[16]. - Delta's adjusted net debt decreased to $14.3 billion at the end of the December quarter, down $3.7 billion from the end of 2024[19]. - Delta's total cash, cash equivalents, and restricted cash equivalents at the end of Q4 2025 were $4,501 million, an increase from $3,421 million at the end of Q4 2024[47]. - Adjusted net debt decreased to $14,300 million as of December 31, 2025, down from $17,980 million in the previous year, reflecting a reduction of $3,680 million[82]. - The company reported a total debt and finance lease obligation of $14,113 million as of Q4 2025, down from $16,194 million in Q4 2024[37]. - Adjusted debt to EBITDAR ratio improved to 2.4x for the year ended December 31, 2025, down from 2.6x in 2024, reflecting a stronger balance sheet[68]. Customer and Operational Metrics - Delta served over 200 million customers in 2025, achieving recognition for premium economy passenger satisfaction[28]. - Passenger revenue for Q4 2025 was $12,916 million, a 1% increase from $12,815 million in Q4 2024[43]. - Other revenue increased by 14% to $2,841 million in Q4 2025 from $2,495 million in Q4 2024[41]. - Refinery revenue for Q4 2025 was $1,397 million, a significant 25% increase from $1,122 million in Q4 2024[41]. - The passenger load factor for Q4 2025 was 82%, down from 84% in Q4 2024[45]. - Average stockholders' equity was reported at $18,023 million, with an after-tax return on invested capital of 12.0%[71]. Capital Expenditures and Future Plans - Delta announced an agreement to purchase thirty 787-10 widebody aircraft, with deliveries starting in 2031, enhancing its long-haul capabilities[17]. - Delta's capital expenditures for FY25 were $4,499 million, down from $5,140 million in FY24[37]. - Gross capital expenditures for the year ended December 31, 2025, amounted to $4,333 million, down from $4,834 million in 2024[81]. - The company plans to adjust CASM for maintenance, repair, and overhaul (MRO) expenses starting in the March quarter of 2026 to enhance cost performance analysis[74].