Core Viewpoint - Delta Air Lines is entering 2026 with a focus on maintaining discipline, sustaining cash flow, and emphasizing balance-sheet flexibility, which is a message not commonly heard from airlines [1][2][3] Financial Guidance - Delta's guidance for 2026 earnings per share (EPS) is projected to be between $6.50 and $7.50, aligning closely with Bank of America's estimate of $7.30 and the broader market estimate of $7.26 [4] - Despite a strong business year, Delta has not significantly altered its financial guidance, indicating a cautious approach to future earnings [4] Market Conditions - Bank of America notes that Delta's management is responding to economic changes in 2025 without indicating a breakdown in demand, as both businesses and consumers have adapted to volatility [5] - High demand for luxury products continues to support Delta's market position [5] Investment Appeal - Delta is viewed as a favorable investment due to its premium positioning, which may allow it to perform better than competitors that rely heavily on low-cost flying, especially in a potentially turbulent sector [6] - The airline industry is expected to maintain good capacity in the first half of 2026, which could enhance pricing and unit revenue if supply remains balanced [6] Maintenance, Repair, and Overhaul (MRO) Business - Delta's MRO segment, previously considered minor, is gaining attention as it transitions from a "nice-to-have" to a significant contributor to revenue [7] - The MRO income had stagnated around $800 million for several years, but recent changes in business operations and a rising backlog, including a notable 10-year deal with UPS, suggest potential for growth [7][9]