(Jan 13): 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. The airline expects a 20% increase in earnings per share in 2026 compared with a year earlier, it said on Tuesday (Jan 13). Revenue last year rose to a record US$58.3 billion, in line with analysts’ expectations.
Shares in Delta fell 5.1% in US premarket trading to US$67.40, dragging down rivals. United Airlines Holdings Inc and American Airlines Group Inc fell 2.8%. Delta said it predicted free cash flow of US$3 billion to US$4 billion, less than the US$4.6 billion it pulled in last year as it boosts reinvestments in the business.
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 virtually all will be in the premium sector.”
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.
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The airline’s high-margin, diversified revenue streams grew and reached 60% of total sales, reflecting increased demand for the carrier’s premium products, Delta President Glen Hauenstein said in Tuesday’s statement.
The airline expects earnings per share to rise from US$5.82 to between US$6.50 and US$7.50 in 2026, it said in the statement. In the first quarter, the company predicted an operating margin of 4.5% to 6%, 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 Co engines on its 787s. Delta said that the aircraft are “an ideal addition” to the airline’s transatlantic and South American network.
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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 that both average 27 years.
Delta 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 this year.
The Delta agreement continues a winning streak in the new year for Boeing, which only last week secured a large order from Alaska Air Group Inc.
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.
Uploaded by Arion Yeow
