Delta is betting on higher-paying flyers as its forecast disappoints Wall Street

Delta Air Lines said strong demand among premium customers willing to pay more for bigger seats and in-flight perks could boost earnings by more than 20% this year but its shares fell after the airline’s forecast came in below Wall Street expectations.

The airline said high-end demand continues to outpace sales in standard coach cabins, a trend that has accelerated as wealthier travelers keep flying while more price-sensitive customers pull back. Main cabin ticket revenue fell 7% in the fourth quarter from a year earlier, while premium ticket revenue rose 9%, overtaking coach sales in the quarter. 

The split is influencing how Delta plans its capacity, it said, with the airline directing virtually all of its seat growth toward premium cabins, as it tries to set itself apart from budget carriers and focus on the more expensive end of the market.

“We are looking at our seat growth in the coming year,” chief executive Ed Bastian said. “Effectively none of our growth in seats will be in the main cabin, virtually all will be in the premium sector.” 

Delta said it expects adjusted earnings per share of between $6.50 and $7.50 in 2026. Analysts were expecting about $7.25 a share, sending shares down as much as 6% and dragged other airline stocks lower. 

The airline forecast revenue growth of up to 7% in the first quarter and adjusted earnings of between 50 cents and 90 cents per share. Analysts were expecting about 72 cents. The airline said early-year bookings are strong from both leisure travelers and corporate customers.

For the fourth quarter, Delta reported adjusted earnings of $1.55 per share on adjusted revenue of $14.61 billion, slightly ahead of analyst expectations. The airline posted profit of $1.22 billion on total revenue of $16 billion, up 3% from a year earlier. 

Even with the strong quarter, Bastian struck a cautious tone about the year ahead. “We’re not going to project or commit to a record earnings until we understand the uncertainties a little bit better,” he said, adding that travel to the U.S. from Canada and China are examples of where people “just haven’t returned in large numbers.”

Alongside its results, Delta said it will buy 30 Boeing $BA 787-10 Dreamliners, with options for 30 more. Deliveries are expected to begin in 2031, reflecting airlines’ longer-term bets on international travel demand.