Delta defies slow revenue growth with record cash flow in 2025
Delta Air Lines has reported strong financial results for 2025, despite some challenges in the fourth quarter. The company’s record free cash flow and solid earnings growth have caught the attention of investors, even as revenue growth slows. CEO Ed Bastian highlighted the airline’s resilience in a cyclical industry.
In January 2026, Delta released its fourth-quarter 2025 financial results. Revenue grew by just 1.2% year over year, a slowdown from the previous quarter’s 4.1% increase. Non-GAAP earnings per share also dropped by 16% compared to the same period in 2024.
However, the airline still generated a record $4.6 billion in free cash flow for 2025. Over the past three years, Delta has produced $10 billion in free cash flow, cutting its debt by more than half. Its return on invested capital stands at 12%, well above its cost of capital and outperforming most S&P 500 companies. Premium product revenue, including business and first-class ticket sales, rose by 7% in the fourth quarter. The company now expects first-quarter 2026 revenue to climb between 5% and 7% year over year. Non-GAAP earnings per share for the same period are forecasted between $0.50 and $0.90, representing a 52% jump from 2025. For the full year 2026, Delta projects non-GAAP earnings per share of $6.50 to $7.50, around 20% higher than in 2025. Despite these strong figures, the stock trades at just nine times earnings, making its performance stand out further.
Delta’s financial strength and cash flow generation have improved its debt position significantly. The airline’s premium services continue to drive growth, and early 2026 projections suggest a strong start to the year. Yet, high debt levels and the cyclical nature of the airline industry remain key risks for potential investors.
