The news: Delta expects revenues and profits to rise at a robust pace in 2026, driven mainly by growth in its premium business and corporate demand.

• The company is projecting Q1 revenue growth of between 5% to 7% YoY, ahead of analyst expectations.
• Delta expects FY profit growth of about 20%, driven mainly by its push to add more premium seating. “Virtually all” seat growth in 2026 will come in its premium cabins, which are driving revenue expansion as main cabin demand softens, CEO Ed Bastian told reporters.

By the numbers: Delta’s pursuit of wealthier flyers is paying off, despite signs of overall uneven travel demand.

• Premium ticket revenues increased 9% YoY in Q4 as main cabin sales declined 7%.
• Sales from the front of the plane surpassed economy revenues for the first time during the quarter—a milestone the airline was looking to achieve by 2027.

Delta is taking a cautious approach to the year ahead: Its FY profit forecast was weaker than expected, possibly reflecting challenges like depressed consumer sentiment, geopolitical uncertainty, and weak inbound demand. Earnings per share are projected at $6.50 to $7.50, with the midpoint falling below Bloomberg’s $7.20 consensus estimate.

Zoom out: For the broader travel industry, 2026 is shaping up to be a mixed bag.

Domestic interest is high. A majority of Americans (91%) plan to travel this year, and 49% want to travel more than they did last year, according to a Marriott Bonvoy survey conducted by The Harris Poll.

However, fewer people are interested in coming to the US.

• International travel to the US fell in December, marking the eighth straight month of declines. The number of overseas visitors decreased by 1.3% YoY, per the US Department of Commerce, with travelers from Western Europe and Asia falling by 4.2% and 2.1%, respectively.
• Canadians are also pulling back. Visits to the US plunged 28% YoY in 2025, per Statistics Canada, which is hurting businesses reliant on cross-border traffic and tourism. Many Canadians have also soured on spending on US goods, a Bank of Canada survey found.
• While the World Cup is likely to be a major draw, proposed social media screening checks and geopolitical tensions could considerably dampen inbound demand during the rest of the year.

The implications: 2026 is likely to be a challenging year for the travel and hospitality industry. Companies like Delta that cater to the top end of the bifurcated economy are well positioned as higher-income consumers spend on premium goods and experiences. But businesses dependent on price-sensitive households and international travelers face a tougher landscape.

To offset weaker international spending, businesses will need to find ways to entice domestic consumers. That could mean positioning certain destinations as more affordable alternatives, piggybacking off of travelers’ interest in the World Cup or other live events, or leaning into discounts and deals to motivate consumers to travel.