DAL · 10-Q · 2026Q2 · Full report

MRO Expense Increase

DELTA AIR LINES, INC. · 2026-07-10 · Importance 48 · Surprise 40

MRO expense relates to Delta TechOps third-party maintenance, repair and overhaul services and increased year-to-date as the mix shifted to more work on legacy engines versus next-generation engines. Aircraft maintenance materials and outside repairs rose to $1,397 million from $1,237 million year-to-date, an increase of ~13%, and management expects the mix shift and higher legacy engine work to continue throughout 2026. MRO costs are also adjusted out of CASM-Ex to provide comparability to peers, reflecting management’s view of recurring cost performance. The third-party MRO business mix and related margins are driving higher operating expense in the period.