Delta Seals Boeing Order as Earnings Support Travel Boom

Delta Air Lines Inc. is ordering 30 Boeing Co. 787 Dreamliner jets in its first-ever purchase of that model, providing a boost to the US planemaker that highlights the airline’s optimism for international travel demand.

The announcement came as Atlanta-based Delta reported earnings for the fourth quarter that beat analyst estimates. Revenue last year rose to a record $58.3 billion, in line with analysts’ expectations. Bloomberg's George Ferguson joins to discuss on Bloomberg Intelligence.

Delta Air Lines Inc. provided a profit forecast that fell short of Wall Street estimates, with the major US airline taking a more cautious view for 2026 after the aviation industry emerged from a volatile year.

Shares in Atlanta-based Delta fell 1.5% to $70 as of 11:07 a.m. New York time after it reported quarterly results on Tuesday. United Airlines Holdings Inc. was up fractionally, while American Airlines Group Inc. fell 1.7%

As the first major US airline to report earnings, investors look to Delta for signs on the strength of the industry. The carrier’s relatively tepid forecast stands in contrast with Bastian’s optimism at the start of 2025 before President Donald Trump’s campaign to reset global trade and other disruptions battered flying, forcing airlines into reverse.

“We realize that there’s still a fair bit of uncertainty in the environment, particularly on the geopolitical front,” Bastian said in an interview. “We’re not going to project or commit to record earnings until we understand the uncertainties a little bit better.”

Foreign travel to the US from Canada and China, for example, are where people “just haven’t returned in large numbers,” he added.

The airline expects its full-year earnings per share for 2026 to be in a range of $6.50 to $7.50, it said. The midpoint of its forecast fell short of the $7.20 analysts surveyed by Bloomberg predicted on average.

Delta also said it predicted free cash flow of $3 billion to $4 billion, less than the $4.6 billion it pulled in last year as it boosts reinvestments in the business.

At the same time, Bastian said demand from high-spending consumers continues to be strong. Delta has touted its premium products in the cabin and on the ground as it seeks to differentiate itself from budget carriers and appeal to well-heeled flyers.

“Effectively none of our growth in seats will be in the main cabin,” Bastian said. “They virtually all will be in the premium sector.”

Revenue last year rose to a record $58.3 billion, in line with analysts’ expectations.

Trump’s demand that credit card issuers lower interest rates to 10% would be a major disruptor for the industry, Bastian told analysts on a conference call after Delta released results. Airline loyalty programs — which include co-branded credit cards — are a crucial source of revenue for carriers.

“One of the big issues and challenges with the potential order is the fact that it would actually restrict the lower-end consumer from having access to any credit, not just what the interest rate they’re paying,” Bastian said, adding that it could “upend the the whole credit card industry.”

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