DAL · 10-Q · 2026Q2 · Full report

Profit Sharing Expense Change

DELTA AIR LINES, INC. · 2026-07-10 · Importance 38 · Surprise 24 · In source text

Delta paid $1.3 billion in profit sharing payments in February 2026 related to 2025 pre-tax profit under its broad-based program (10% of profit for the first $2.5 billion, 20% above $2.5 billion). The program defines profit as pre-tax profit adjusted for profit sharing and certain other items; management accrued $493 million of profit sharing expense during the six months ended June 30, 2026 based on year-to-date performance and current expectations for 2026. Profit sharing is included as an operating cash flow item and management adjusts for it in certain non-GAAP measures (e.g., CASM-Ex adjustments). The magnitude of these payments ($1.3 billion) is a material use of cash in the period.

Key facts

• We paid $1.3 billion in profit sharing payments in February 2026 related to our 2025 pre-tax profit. source
• During the six months ended June 30, 2026, we accrued $493 million in profit sharing expense based on year-to-date performance and current expectations for 2026 profit. source
• Profit sharing decreased by $142 million due to lower quarterly results compared to the June 2025 quarter, and the profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual profit and 20% of annual profit above $2.5 billion. source

Impact estimates