Delta Air Lines profit forecast raises hopes: Stock falls; focus shifts to premium travelers

Delta Air Lines is betting on high-paying passengers to boost profits in 2026. CEO Ed Bastian said that almost all new seats will be in premium cabins, not economy. The airline has ordered 30 Boeing 787 widebody jets, with options for 30 more, to serve long-haul international routes. Bastian said, “The strength in the consumer sector is at the higher end. The lower-end consumer is struggling. We fortunately do not live there.” This shows Delta is focusing on travelers who spend more.

In December, Delta’s economy ticket sales fell 7%, while premium tickets rose 9%. Budget airlines that rely on regular travelers are facing difficulties. Some, like Allegiant, are merging with other companies, while others, such as Spirit Airlines, went bankrupt. International travel is slowly recovering. Markets like Canada and China are still below pre-pandemic levels. The FIFA World Cup may bring more international passengers in 2026.

Premium cabins, loyalty programs, and partnerships, including American Express, generate nearly 60% of Delta’s revenue. Delta plans to introduce Boeing 787-10 planes starting in 2031 for medium-length international flights. Bastian said relying on a single plane maker is risky, so the new Boeing jets help diversify suppliers. Delta expects adjusted earnings per share of $6.50–$7.50 and free cash flow of $3–$4 billion. Analysts had predicted $7.25 per share, which is why the stock fell nearly 5%. United Airlines and American Airlines also dropped about 3%.

1. Why did Delta Air Lines stock fall today?
   The stock fell because the midpoint of Delta’s 2026 profit forecast was lower than what analysts expected.
2. How is Delta attracting premium travelers?
   Delta is adding more premium seats and ordering Boeing 787 jets for long-haul and wealthy customers.
3. What is driving Delta’s earnings growth in 2026?
   Growth comes mainly from corporate and premium travelers, loyalty programs, and partnerships like American Express.