Delta(US:DAL) Xin Lang Cai Jing·2026-01-13 13:11Core Viewpoint - Delta Air Lines expects a more than 20% increase in profits for 2026 compared to 2025, potentially reaching a historical high, driven by strong travel demand, particularly in the premium market [3][13]. Financial Outlook - Delta projects adjusted earnings per share (EPS) for 2026 to be between $6.50 and $7.50, slightly below analysts' expectations of $7.25 [3][5]. - For Q1 2026, Delta anticipates a revenue growth of 5% to 7% year-over-year, with adjusted EPS expected to be between $0.50 and $0.90, aligning with analyst forecasts [5][11]. - In Q4 2025, Delta reported a profit of $1.22 billion, or an EPS of $1.86, marking a nearly 45% year-over-year increase, with total revenue of $16 billion, up 3% [15]. Market Dynamics - Delta's revenue growth is increasingly driven by high-spending customers, as indicated by the shift in revenue from economy class to premium cabins, where revenue from first and business class tickets grew by 9% to nearly $5.7 billion, surpassing economy class revenue [3][13]. - The company plans to increase capacity exclusively in premium seating, with no additional economy class seats [3][13]. Strategic Moves - Delta announced an order for 30 Boeing 787-10 Dreamliners, marking its first purchase of this long-haul wide-body aircraft from Boeing, reflecting a recovery in demand for large aircraft [15][16]. - Delta retains an option to purchase an additional 30 Boeing 787-10 aircraft [16]. Cautionary Notes - CEO Ed Bastian expressed caution regarding the 2026 outlook, acknowledging various uncertainties, including geopolitical factors and domestic policy changes that could impact performance [6][14].