DAL JPM Industrials 2026

Call Details

• Call Title: JPM Industrials 2026 Conference - Delta Air Lines
• Date: March 17, 2026 7:23 PM UTC
• Management Team:
  • Ed Bastian (Chief Executive Officer)
  • Julie Stewart (Vice President of Investor Relations)
  • Joe Esposito (Executive Vice President & Chief Commercial Officer)
  • Dan Janki (Chief Financial Officer (moving to Chief Operating Officer))
  • Eric Snell (Chief Financial Officer (incoming) and Head of Customer Experience)

Call Summary

Strategic Commentary

• Delta reported $4.5B of free cash flow in 2025 and $10B of free cash flow over the last three years.
• Delta stated a 15% ROIC target and reported a trailing ROIC of 12% for the most recent year.
• Delta reported a cost of capital in the 7% to 8% range and emphasized continuing to generate returns above that cost.
• Delta reported it generated 55% of the industry's profits in 2025 while representing roughly 20% of market share.
• Delta reaffirmed its Q1 EPS range at $0.50-$0.90 while noting revenue guidance for the quarter was increased.
• Delta described resilience and people as the core strategic differentiators supporting pricing power and customer loyalty.
• Delta reiterated a capital allocation framework where roughly half of operating cash flow funds CapEx and half funds debt paydown and shareholder returns.

Market / Industry View

• Jet fuel prices rose sharply during the period, with references to fuel levels that have 'almost doubled since the start of the year' and to 'jet fuel up almost double digits'.
• The industry has shown the ability to recapture fuel cost increases on a 2- to 3-month lag according to the call commentary.
• Delta emphasized that most other carriers have little fuel hedging in place, increasing the pace of fare and surcharge actions industry-wide.
• Delta reported that corporate and high-end leisure demand remains strong, with multiple tracked industries up double digits and some up 20%+ year-over-year.
• International markets were described as implementing fuel surcharges more quickly, while domestic markets have seen base fares rise to help recapture fuel costs.
• Delta noted a modest decline in exit-Europe bookings since the war started, and stated that exit-Europe represents less than 20% of its transatlantic point-of-sale exposure.