Delta Air Lines Inc (NYSE:DAL) stock fell 1.20% (As on December 14, 11:17:36 AM UTC-4, Source: Google Finance) after the company reported mixed earnings for the fourth quarter, driven in part by a government shutdown, which impacted travel by 2 points. Delta reported operating revenue of $16 billion and operating income of $1.5 billion, yielding an operating margin of 9.2%. For the full year, Delta posted record revenue and achieved a double-digit return on invested capital. As previously disclosed, the government shutdown reduced pretax profit by $200 million, or 25¢ per share. The FAA-mandated flight reduction and weather disruption impacted nonfuel unit cost growth by about one point. For the quarter, nonfuel CASM increased 4% year over year on 1% higher capacity. The company reinvested $4.3 billion in the business, including 38 new aircraft deliveries, and continued enhancement to the customer experience and technology. Free cash flow of $4.6 billion supported debt reduction of $2.6 billion, and the company ended the year with gross leverage of 2.4 times. The company closed the year with adjusted net debt of approximately $14 billion and unencumbered assets of $35 billion

DAL in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.55, beating the analysts’ estimates for the adjusted earnings per share of $1.53. The company had reported the adjusted revenue growth of 35.9 percent to $14.61 billion in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $14.72 billion. The passenger revenue totaled $12.92 billion, underperforming the $13.07 billion forecast.

Looking ahead, Delta expects 2026 earnings to grow about 20% year-over-year. For the March quarter, the airline projects revenue growth of 5% to 7% compared with the same period in 2025. In 2026, the company expects to generate free cash of $3 billion to $4 billion, supporting further debt reduction and growth in shareholder returns. The company plans in  expanding the premium lounge network, delivering a connected experience for SkyMiles members, more than 1,100 aircraft already equipped with faster free Wi-Fi, and introducing innovative digital tools like Delta Concierge. In 2026, the company plan CapEx of $5.5 billion, including around 50 aircraft deliveries, and ongoing investment in customer experience and technology. The free cash flow outlook of $3 billion to $4 billion remains within the long-term target, though lower than 2025 due to increased capital investment and the transition to becoming a partial taxpayer.