DAL · 10-Q · 2026Q2 · Full report
Income Tax Rate and NOL Utilization
DELTA AIR LINES, INC. · 2026-07-10 · Importance 71 · Surprise 60 · In source text
During 2025 Delta utilized substantially all net operating loss carryforwards generated in 2017 and earlier and, due to limitations on post‑2017 NOLs, began making federal income tax cash payments. As of December 31, 2025, Delta had approximately $2.4 billion of U.S. federal pre-tax net operating loss carryforwards (primarily generated in 2020 and not expiring) which management expects to utilize a majority of during 2026, and management expects income tax cash payments for the full year to increase in 2026 based on projected results. Excluding mark‑to‑market adjustments on equity investments recognized in June 2026, Delta projects an annual effective tax rate for 2026 of 23% to 25%. These changes materially affect cash tax outflows and near‑term cash flow planning.
Key facts
- Excluding mark-to-market adjustments on equity investments recognized in the June 2026 quarter, Delta projects its annual effective tax rate for 2026 will be 23% to 25%. source
- As of December 31, 2025, we had approximately $2.4 billion of U.S. federal pre-tax net operating loss carryforwards which we expect to utilize a majority of during 2026; these NOLs were primarily generated in 2020 and do not expire. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | unclear | probable | — | Excluding mark-to-market adjustments on equity investments recognized in the June 2026 quarter, Delta projects its annual effective tax… |
| net_income | positive | probable | — | As of December 31, 2025, we had approximately $2.4 billion of U.S. federal pre-tax net operating loss carryforwards which we expect to… |