Delta seals Boeing order as earnings support travel boom
Rising to a record US$58.3 billion, the airline’s revenue in 2025 is in line with analysts’ expectations
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[ATLANTA] Delta Air Lines is ordering 30 Boeing 787 Dreamliner jets in its first 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.
The airline expects a 20 per cent increase in earnings per share (EPS) in 2026 compared with a year earlier, it said on Tuesday (Jan 13).
Revenue in 2025 rose to a record US$58.3 billion, in line with analysts’ expectations.
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. CEO Ed Bastian said that demand from high-spending consumers continues to be strong.
“Effectively, none of our growth in seats will be in the main cabin,” Bastian said. “They will virtually all be in the premium sector.”
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That focus helped Delta retain its profitability targets in 2025, even as economic uncertainty prompted price-sensitive travellers to put trips on hold. Investors closely watch results from Delta, the first major US carrier to report quarterly earnings, for signals on the strength of the industry.
The airline’s high-margin, diversified revenue streams grew and reached 60 per cent of total sales, reflecting increased demand for the carrier’s premium products, Delta president Glen Hauenstein said on Tuesday.
The airline expects EPS to rise from US$5.82 to between US$6.50 and US$7.50 in 2026, with US$3 billion to US$4 billion in free cash flow, it said.
That is lower than US$4.6 billion in free cash in 2025. In the first quarter, the company predicted an operating margin of 4.5 to 6 per cent, with an EPS range of 50 to 90 cents.
The new Boeing deal, which comprises 30 firm orders and options for another 30, will see deliveries starting in 2031, Delta said.
The airline will opt for General Electric engines on its 787s. Delta said that the aircraft is “an ideal addition” to the airline’s transatlantic and South American network.
Airlines across the world are looking to rejuvenate their widebody fleets that serve on long-haul routes. Delta has almost 60 older Boeing 767s, and more than 90 757s; these two ageing fleets have an average age of 27 years.
The airline has one of the largest and most diverse fleets in the industry. The company also operates Airbus SE’s A350 model for long-distance routes, with deliveries of the larger A350-1000 slated to begin in 2026.
The Delta agreement continues a winning streak in the new year for Boeing, which secured a large order from Alaska Air Group last week.
The US planemaker is on track to claim the jet-sales title from its European rival Airbus for the first time this decade. On Tuesday, Boeing also announced a deal with Aviation Capital Group for an order of 50 737 Max jets. BLOOMBERG
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