Delta Air Lines expects TechOps revenues can more than double over the next several years, after its maintenance, repair and overhaul (MRO) unit generated $990 million in the first nine months of 2026.
“Our operational expertise ... creates value beyond the core airline,” Delta COO Dan Janki said on an Oct. 9 earnings call. “I’m proud of the TechOps team for delivering a billion dollars of maintenance, repair, and overhaul revenue, year to date, an increase of nearly 60% over last year, while expanding margins and growing our customer base.”
Outlining forward-looking goals, Delta executives pointed to the last several years of revenue growth, and a TechOps backlog at “record levels.” Highlighting MRO as one of its key high-margin revenue streams, the company has focused on growing Delta TechOps revenues to $1 billion and beyond. Given its strong growth potential, Delta announced earlier this year that it would separate MRO from its non-fuel unit costs metrics, providing additional detail on revenue and costs.
During the third quarter, its MRO segment generated $296 million in revenue, up 28% year over year. Expenses were $267 million, putting Delta TechOps’ third-quarter margin at 10%. That compares with a margin of 14% in the first quarter and 13% in the second.
“With what our commercial pipeline has, you should see really good double-digit revenue growth and a continued focus on steady margin expansion,” Janki said on the carrier’s third-quarter call. “We always see at least 100 basis points in a year [and] we’ll get outsized amounts this year. Some of that depends on your customer and engine mix that you’re dealing with in any given quarter or year, but that’s a focus ... This really has the opportunity to double and then keep growing from there.”
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