Delta Airlines reported earnings today and it was one of the strongest indications yet that there are two distinct economies in the US: The rich and everyone else. Where there was once the 'haves' and the 'have nots', there are now only the 'have lots' and everyone else.
Delta is making a deliberate shift away from economy seating to chase the only part of the consumer market that is still growing.
There is an old adage in the markets: "Don't tell me what the economy is doing; tell me where the money is going."
If you want to understand the 2026 US. consumer, look past the GDP print and straight into the cabin of a Delta 737..
“We are looking at our seat growth in the coming year. ... Effectively, none of our growth in seats will be in the main cabin; virtually all will be in the premium sector,” Delta CEO Ed Bastian told reporters after today's earnings release.
The numbers Delta reported for the fourth quarter are a study in contrast. While the headline figures beat expectations, the internal mechanics tell the real story:
Main Cabin: Revenue fell 7% to $5.62 billion.
Premium Products:: Revenue rose 9% to $5.7 billion.
For the first time in a quarterly result, premium revenue—the seats at the front of the plane—actually overtook the standard coach class.
As for the earnings themselves, the market was looking for a stronger guide for next year. Shares are down 3.7%.
Bastian had to cut the outlook last year after the uncertainty of Liberation Day.
“We’re not going to project or commit to a record earnings [forecast] until we understand the uncertainty,” he said today.
“I think we’re well aware of the risk factors,” he said. “This past year, and I think again this year ... [will] be more of the geopolitical environment, whether that’s international or on domestic policy.”
As for the quarter itself, here were the top-line metrics:
- Earnings per share: $1.55 adjusted vs. $1.53 expected
- Revenue: $14.61 billion adjusted vs. $14.69 billion expected
Delta also announced it would buy 30 Boeing 787-10 Dreamliners, that's helped to lift Boeing shares by 2.3%.
