Delta Air Lines Up 5%, American Airlines Up 4% as Travel Demand Lifts the Sector

Core Viewpoint - Strong travel demand is driving stock price increases for Delta Air Lines and American Airlines, with Delta's stock up 5% and American Airlines up 4% as of March 17, 2026 [1][2][4]. Delta Air Lines - Delta's Q4 2025 premium cabin revenue reached $5.7 billion, a 9% increase year-over-year, and the airline is targeting full-year 2026 EPS of $6.50 to $7.50 [2][9]. - The airline reported Q4 2025 revenue of $16 billion, up 2.9% year-over-year, with an adjusted EPS of $1.55, slightly above the consensus estimate of $1.52 [8][10]. - Premium and diversified revenue streams now account for 60% of total adjusted revenue, providing insulation from fare-war pressures [8]. - Delta's adjusted net debt decreased by $3.68 billion to $14.3 billion in 2025, indicating improved balance sheet health [10]. American Airlines - American Airlines is guiding for Q1 2026 revenue growth of 7% to 10%, supported by double-digit system-wide revenue growth in early 2026 [2][8]. - The airline's Q4 2025 adjusted EPS was $0.16, missing the consensus estimate of $0.35, while operating expenses surged 8.2% year-over-year [12]. - American Airlines carries a total debt of $36.5 billion and has negative shareholders' equity of $3.727 billion, raising concerns about its financial stability [12]. - The airline is targeting full-year 2026 adjusted EPS of $1.70 to $2.70 and expects free cash flow to exceed $2 billion [13][14]. - A new Citi credit card partnership launched in January 2026 is expected to enhance loyalty revenue streams [14].