Delta Air Lines, Inc.
0QZ4.L
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+ FollowMarket Cap$50.51B
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Earnings Call Q3 2026
October 9, 2026 - AI Summary
Strong earnings + cash despite higher fuel (core durability):
- September quarter: revenue +16% (flat capacity), pretax profit $1.5B (in line with last year), EPS $1.72, operating margin 9.4%.
- Absorbed $1.6B higher fuel costs vs prior year (including a ~$500M+ overshoot vs guidance). Fuel averaged $3.61/gal with refinery benefit $0.13/gal.
- Free cash flow (FCF): $460M in the quarter; $1.9B YTD FCF.
Guidance: December and full-year profitability supported even if fuel stays high:
- December quarter outlook: pretax profit $1.2B; revenue growth ~20% YoY; capacity ~3% (seat growth <2%, with main cabin seats down YoY).
- Q4 EPS $1.15–$1.65, operating margin 7%–9%.
- Full year: pretax profit ~ $4.5B ~“close to last year”; EPS $5.10–$5.60; FCF ~ $2.5B.
- Fuel assumed ~+$6B for the year (~60% higher fuel bill YoY). They also cite refinery benefit >$700M for the year.
Balance sheet progress (deleveraging + credit/asset strength) rather than shareholder payout emphasis:
- Adjusted net debt $13B at quarter end; plan to pay down >$2B debt in 2026; targeting gross leverage ~2.2x year-end.
- Investment-grade ratings; Fitch upgrade to BBB flat; $3B pension surplus and growing unencumbered assets.
- They emphasized returns framework: ROIC 11% currently, aiming for mid-teens and ~15% ROIC long-term (contrast: “ex-Delta industry ROIC ~3%” in ED’s remarks).
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$51.45
32.7% downside
Current Fair Value
32.7% downsideOvervalued by 32.7% based on the discounted cash flow analysis.
Share Statistics
| Market cap | $50.51 Billion |
|---|---|
| Enterprise Value | $65.94 Billion |
| Dividend Yield | $0.81 (1.05%) |
| Earnings per Share | $7.72 |
| Beta | 1.31 |
| Outstanding Shares | 655,000,000 |
Return
| Return on Equity | 14.61% |
|---|---|
| Return on Assets | 3.82% |
| Return on Invested Capital | 7.99% |
Valuation & Multiples
| P/E Ratio | 15.23 |
|---|---|
| PEG | -32.66 |
| Price to Sales | 0.7 |
| Price to Book Ratio | 2.25 |
| Enterprise Value to Revenue | 0.92 |
| Enterprise Value to EBIT | 15.72 |
| Enterprise Value to Net Income | 20 |
| Total Debt to Enterprise | 0.29 |
| Debt to Equity | 0.85 |
Revenue Sources
No data
Insider Trades
Last Earnings Call
Report Date
October 9, 2026
EPS Estimate
$1.77
Average shareholder expectationRevenue Estimate
$17.64 B
Average shareholder expectationNext Earnings Call
Expected Date
January 8, 2027
EPS Estimate
$1.41
Average shareholder expectationRevenue Estimate
$17.54 B
Average shareholder expectationInstitutional Sentiment (Put/Call)
No data available for the latest quarter.
Institutional Ownership
No data available for the latest quarter.
ESG Score
No data
About Delta Air Lines, Inc.
100,000 employees
CEO: Edward H. Bastian Delta Air Lines is the U.S. global airline leader in safety, innovation, reliability and customer experience. Powered by its employees around the world, Delta has for a decade led the airline industry in operational excellence while maintaining its reputation for award-winning customer service.