Delta Air Lines, Inc. (DAL) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

And with that, I'll turn the call over to Ed. Thank you, Julie, and good morning, everyone. The Delta team delivered a strong close to our centennial year with results that are a clear proof point of the differentiation earnings that were consistent with our expectations outside of the impact of the government shutdown. For the full year, we recorded record revenue of $58.3 billion, an operating margin of 10%, pre-tax income of $5 billion, and earnings of $5.82 per share. A key highlight is free cash flow. We delivered $4.6 billion at the top end of our long-term financial framework, and the highest in Delta's history. Over the past three years, we've generated $10 billion in free cash flow, allowing us to strengthen our investment-grade balance sheet and reduce leverage by more than 50%. Our return on invested capital of 12% is well above our cost of capital, placing us in the upper half of the S&P 500 and leading the industry. These results underscore the strength of our brand and the resilience of our competitive advantages. It would not be possible without the dedication of our people. To all 100,000 members of the Delta team, we thank you for your unwavering commitment. Your care and professionalism, especially through a busy holiday season, are the reason customers choose Delta and why our results lead the industry. At Delta, sharing success is at the heart of our culture. That's why in 2025, we awarded a 4% pay increase, and I'm pleased to announce that we'll celebrate with our team with $1.3 billion in well-earned profit sharing this February. This is one of the largest profit sharing payouts in Delta's history, a testament to the extraordinary efforts of our people who set us apart from the rest of the industry. Turning to our outlook, the year is off to a s...