Track market-moving stories before they get noisy

Key Takeaways Delta's premium revenue rose 17%, while diverse streams generated 61% of total revenues. DAL's loyalty revenues grew 19%, with American Express remuneration reaching $2.4 billion. Delta Sync seatback spans 400-plus aircraft, while fuel and non-fuel costs remain elevated. Delta Air Lines ((DAL - Free Report) ) sits at the center of several trends shaping airline economics in 2026. Fuel volatility, premium demand, loyalty monetization and technology-driven personalization are all visible in its current setup.

For investors, the issue is how much of Delta’s advantage can translate into durable earnings support. United Airlines Holdings, Inc. ((UAL - Free Report) ) offers a peer comparison because network carriers face similar fuel, capacity and international demand tests. American Airlines Group Inc. ((AAL - Free Report) ) provides another reference point where revenue segmentation and cost control remain central to investor debate.

Delta Shows Premium Travel Staying StrongDelta’s revenue base continues to show that higher-yield travel remains firm. In the June quarter, premium revenue grew 17% year over year, while diverse revenue streams accounted for 61% of total revenues, up 2 points from the prior-year period.

Corporate demand also strengthened. Corporate sales grew double digits across all sectors, and premium corporate sales rose more than 25%, helped by demand for Delta Comfort and Delta Premium Select. That mix matters because airlines are no longer competing only on volume. Carriers with more premium exposure and better customer segmentation may be better positioned to defend revenue quality when fuel spikes or macro conditions become less predictable.

The Zacks Consensus Estimate for sales shows year-over-year growth for the third quarter of 2026, fourth quarter of 2026, full-year 2026 and 2027.

Image Source: Zacks Investment Research

DAL Loyalty Model Is Becoming More ValuableDelta’s loyalty ecosystem is becoming a larger part of its investment story. Loyalty and related revenues grew 19% in the June quarter as SkyMiles engagement expanded beyond air travel and deeper into partner activity.

American Express remuneration reached $2.4 billion in the quarter, up 16% year over year. The growth was supported by accelerating card acquisitions and the seventh straight quarter of double-digit growth in cardholder spend.

The value of the model is that it extends Delta’s economics beyond the seat sale. Enhanced travel benefits with American Express, partner activity and higher member engagement can help reduce dependence on purely cyclical airfare demand.

Delta AI Tools Deepen Customer ReachTechnology is becoming part of Delta’s revenue and loyalty strategy. Delta Sync now supports logged-in experiences across onboard channels, giving the company more ways to understand customers and tailor engagement during the trip.

Delta Sync seatback is on more than 400 aircraft, with a log-in rate of more than 40%. Delta Sync Wi-Fi log-in rates are approaching 50%, and about 30% of those customers remain in the platform.

Delta also plans to begin installing Amazon Leo low Earth orbit satellite technology on 500 aircraft starting in 2028. The broader point is not connectivity alone. Better logged-in engagement can improve personalization, retailing and long-term customer value.

DAL Reflects the New Margin BattlegroundDelta’s results also show why airline profitability remains exposed to external shocks. Adjusted fuel expense rose 77% year over year in the June quarter, while adjusted fuel price increased 75% to $3.93 per gallon.

The September-quarter outlook assumes an all-in fuel price of approximately $3.15 per gallon, including a refinery benefit of 5 cents per gallon. The refinery can help offset some pressure, but it does not eliminate fuel risk.

Cost discipline is equally important. Non-fuel cost per available seat mile increased 6.8% year over year in the June quarter, and wage, crew-related and recovery costs remain elevated. Delta is biasing capacity lower to protect margins, underscoring that the industry’s battleground is increasingly about profitability per seat, not just filling aircraft.

Delta Ratings Fit a Trend-Driven StoryThe bottom line is that Delta has several constructive trend signals, but fuel and cost volatility keep the story balanced. Premium demand, loyalty growth and technology-led personalization support revenue durability, while cost inflation limits the margin for error.

DAL currently carries a Zacks Rank #3 (Hold). That ranking fits a stock with favorable business drivers but enough earnings sensitivity to prevent a more decisive near-term signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores are more supportive. DAL has a Value Score of A, Momentum Score of A and VGM Score of A, suggesting attractive value and trading characteristics across the Zacks Style Score framework. Its Growth Score of C tempers the picture, making the stock a trend-positive airline name that still requires discipline around costs, fuel and execution. 

Delta Air Lines NYSE: DAL lived up to its motto, with the Q2 2026 earnings results showing strength, suggesting its shares can Keep Climbing. Drivers include outperformance driven by international demand, overall demand, premiumization, and structural cost advantages, which together provide ample cash flow.

Delta Air Lines Today

DAL

Delta Air Lines

$87.48 -1.52 (-1.70%)

As of 07/10/2026 03:59 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$50.44▼

$95.68Dividend Yield0.98%

P/E Ratio14.51

Price Target$97.06

The critical detail in the release was the guidance, which forecasts that these trends will continue. More importantly, guidance was raised, prompting a robust response from analysts.

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While no upgrades or price target revisions were tracked within the first hours of the release, several commentaries hit the wires. Analyst commentary reaffirms the robust trends, including numerous initiations, upgrades, and price target increases ahead of the earnings release on July 10.

As it stands, MarketBeat tracks 27 analysts rating DAL as a consensus Moderate Buy; coverage is up versus the prior month, quarter, and year, with sentiment firming and an 89% Buy-side bias in the data. The consensus price target assumes fair value near the early-July highs, but the trend matters. Recent revisions place this market in the high-end range, between $100 and $116, which would be a fresh all-time high when reached.

Delta’s July Pullback: A Touch-and-Go Event, Buy the DipDelta’s price pullback reflects a market expecting strength, as the Q2 results and guidance revealed nothing but that. Revenue growth accelerated sequentially and year over year with a robust 18.7% advance, ahead of expectations.

Delta’s strength was seen across metrics, underpinned by a mere 1% increase in capacity. Total revenue per average seat mile (TRASM) grew by 12.4%, with strength in the main cabin and premium, which grew by 17%. Domestic revenue grew by 12% and international revenue by 8%, with cargo up by 39% and maintenance services by 32%. Loyalty, a forward-looking indicator, grew by 19%, and corporate traffic grew by double digits.

While margin contracted in the quarter, and slightly more than expected, the contraction was minimal. More importantly, top-line strength carried through to the bottom line, leaving the adjusted earnings per share of $1.56 above forecasts by 400 bps. Looking ahead, the company expects strength to continue and reaffirmed its guidance. The critical details are that free cash flow and capital returns will continue, and that the guidance may be cautious. Travel trends remain robust across leisure and business segments, potentially accelerated by falling energy prices.

Delta’s Cash Flow Recovery Story Takes FlightDelta’s stock price recovery is underpinned by growth but, more importantly, the cash flow it produces. Drivers of the share price include persistent debt reduction, improving investment-grade balance-sheet quality, and the return of capital to shareholders.

Q3 capital returns included dividends but no share buybacks, with the dividend annualizing to about 1%. The payout ratios reveal no red flags for investors, as the company is in a position to continue executing its strategy while increasing its dividend annually. Balance sheet highlights include increased cash, reduced debt, and improving equity, with equity up 4.6% year to date.

Institutional activity reflects the potential in a DAL investment. The group owns a substantial 70% of the stock and has been accumulating at a nearly $2-to-$1 pace over the trailing 12 months. They provide a solid support base and market tailwind that will likely remain in place, given the guidance. In this scenario, DAL’s share price might continue pulling back in Q3, but the downside is limited, and higher share prices are likely by year’s end. Critical support targets are near $85 and $80; lower lows are unexpected.

Delta’s risks center on cost controls and execution. Costs, including labor, continue to rise while a major C-suite transition is underway. Two retirements and one exec’s departure for new opportunities resulted in several promotions and consolidated roles. The risk lies in disruptive hiccups tied to the role changes, specifically during the upcoming seasonal shift. If Delta fails to match capacity to demand, it risks losing pricing power, which would be detrimental to both top- and bottom-line results. In the longer term, Delta is expected to sustain modest growth over the next five years.

The stock price action is favorable, despite the early Q3 price pullback. Delta is rising on a wave of strength, cash flow, and dividends that has yet to play out, leaving the underlying uptrend intact. The likely outcome is that support kicks in at or near the early July lows, leading to a trend-following signal and price rebound later this year. Signals of strength include MACD convergence on the weekly chart, suggesting the latest highs will at least be retested, and support at the 30-day exponential moving average.

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Delta Air Lines (DAL - Free Report) reported $17.67 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 6.1%. EPS of $1.56 for the same period compares to $2.10 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $17.76 billion, representing a surprise of -0.53%. The company delivered an EPS surprise of +3.31%, with the consensus EPS estimate being $1.51.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Delta performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Passenger load factor: 84.8% versus the four-analyst average estimate of 85.9%.Revenue passenger miles: 66.77 billion versus the three-analyst average estimate of 67.17 billion.CASM - Ex: 14.09 cents versus 14.25 cents estimated by three analysts on average.Average price per fuel gallon, adjusted: $3.93 versus the three-analyst average estimate of $4.05.Available seat miles: 78.69 billion versus 78.25 billion estimated by three analysts on average.TRASM, adjusted: 22.45 cents versus the three-analyst average estimate of 22.49 cents.Passenger revenue per available seat mile: 19.83 cents versus the three-analyst average estimate of 20.19 cents.Total revenue per available seat mile: 25.11 cents versus 23.38 cents estimated by two analysts on average.Passenger mile yield: 23.38 cents versus 23.3 cents estimated by two analysts on average.Operating Revenues- Passenger: $15.61 billion compared to the $15.74 billion average estimate based on four analysts. The reported number represents a change of +12.6% year over year.Operating Revenues- Cargo: $294 million versus $224.17 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +38.7% change.Operating Revenues- Other: $3.86 billion versus the two-analyst average estimate of $3.21 billion. The reported number represents a year-over-year change of +50.1%.View all Key Company Metrics for Delta here>>>

Shares of Delta have returned +8.8% over the past month versus the Zacks S&P 500 composite's +2.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

June quarter earnings topped guidance on broad demand strength and strong execution, generating a double-digit return on invested capital

Expect continued momentum in September quarter with mid-teens revenue growth and double-digit margin

Affirming full-year guidance for adjusted EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion

Further strengthened investment grade balance sheet through debt paydown, and announced a 15 percent increase to dividend payment beginning in September quarter

, /PRNewswire/ -- Delta Air Lines (NYSE: DAL) today reported financial results for the June quarter and provided its outlook for the September quarter and full year 2026. Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.

"Today, we reported our June quarter results, and it is clear that Delta's brand and industry position are stronger than ever. We delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history, reflecting broad demand strength, growing brand preference and momentum across our diversified revenue base. This industry-leading performance is powered by the best people in the business," said Ed Bastian, Delta's chief executive officer.

"Delta is executing from a position of strength, and we expect momentum to carry into the second half with double-digit margins and a return to earnings growth. For the full year, we are affirming the guidance we set at the start of the year to grow earnings by 20 percent, overcoming a multi-billion dollar fuel headwind. This reinforces Delta's durability while positioning us to continue our momentum into 2027."

June Quarter 2026 GAAP Financial Results

Operating revenue of $19.8 billion Operating income of $1.9 billion with an operating margin of 9.4 percent Pre-tax income of $2.0 billion with a pre-tax margin of 10.2 percent Earnings per share of $2.44 Operating cash flow of $1.6 billion June Quarter 2026 Non-GAAP Financial Results

Operating revenue of $17.7 billion Operating income of $1.6 billion with an operating margin of 8.8 percent Pre-tax income of $1.4 billion with a pre-tax margin of 7.7 percent Earnings per share of $1.56 Operating cash flow of $1.7 billion Financial Guidance1

FY 2026

Earnings Per Share

$6.50 - $7.50

Free Cash Flow ($B)

$3 - $4

Gross Leverage2

Approx. 2x

3Q26

Total Revenue YoY (%)

Up Mid-Teens

Operating Margin

11% - 13%

Earnings Per Share

$2.00 - $2.50

Guidance for the September quarter assumes fuel at the forward curve as of July 2, 2026, and includes a refinery benefit of 5-cents per gallon. This results in a projected all-in fuel price for the quarter of approximately $3.15 per gallon.

Revenue Environment and Outlook

"Revenue grew 14 percent in the June quarter, at the high end of our expectations, increasing more than $2 billion over last year on broad demand strength," said Joe Esposito, Delta's chief commercial officer.

"With continued momentum across customer segments and diverse revenue streams, we are confident in the sustainability of yield and revenue strength. For the September quarter, we expect revenue to grow mid-teens over prior year on modest capacity growth, with unit revenue growth improving sequentially. While still early, current trends provide a constructive setup for this strength to extend into the December quarter."

Record June quarter revenue reflects broad demand strength and growing brand preference: June quarter total revenue increased 14 percent over the same period last year to a record $17.7 billion on approximately 1 percent capacity growth. Adjusted total unit revenue (TRASM) grew 12.4 percent over prior year. Main cabin unit revenue grew double-digits, marking the second consecutive quarter of positive main cabin growth. Domestic unit revenue grew 12 percent year-over-year and international unit revenue increased 8 percent, led by Latin. Diversified, high-margin revenue streams continue to differentiate Delta's performance: Diverse revenue streams accounted for 61 percent of total revenue, up 2 points versus the same period last year. Premium revenue grew 17 percent year-over-year on yield strength and continued investment in premium seats. MRO revenue growth of 32 percent was primarily on legacy engine platforms. Cargo revenue increased 39 percent, driven largely by volume. Loyalty momentum powered by growing member engagement across ecosystem: Loyalty and related revenue grew 19 percent, with SkyMiles member engagement continuing to expand beyond air travel within the partner ecosystem. American Express remuneration of $2.4 billion grew 16 percent over last year, supported by accelerating card acquisitions and the seventh consecutive quarter of double-digit year-over-year growth in cardholder spend. Travel products and non-air partnership revenue increased nearly 20 percent over prior year. Corporate sales3 grew double-digits in all sectors: Corporate sales accelerated in the June quarter, led by Aerospace & Defense, Banking, and Automotive, with strong performance in coastal and core hubs. Sustained strength in premium product demand drove a more than 25 percent increase in premium corporate sales, benefiting from recent investments in Delta Comfort and Delta Premium Select.

1 Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures

2 Adjusted debt to EBITDAR

3 Corporate travel sales represent the revenue from tickets sold to corporate contracted customers, including tickets for travel during and beyond the referenced time period

Cost Performance and Outlook

"Delta delivered June quarter results above guidance, with an operating margin of 8.8 percent and earnings of $1.56 per share. In the September quarter, we expect earnings per share to grow over prior year to $2.00 to $2.50 on an operating margin of 11 to 13 percent," said Erik Snell, Delta's chief financial officer. "Non‑fuel unit cost performance is expected to improve modestly from the June quarter with further progression in the December quarter as capacity growth begins to normalize. This puts us back on a path toward our long-term framework of low-single-digit non-fuel unit cost growth."

June Quarter 2026 Cost Performance

Operating expense of $17.9 billion and adjusted operating expense of $16.1 billion Adjusted non-fuel costs of $11.1 billion Non-fuel CASM was 14.09¢, an increase of 6.8 percent year-over-year Adjusted fuel expense of $4.4 billion was up 77 percent year-over-year Adjusted fuel price of $3.93 per gallon increased 75 percent year-over-year with a refinery benefit of 11¢ per gallon inclusive of a 5¢ discrete impact from a temporary refinery outage Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.3 Balance Sheet, Cash and Liquidity

"Through the first half, we generated $4.1 billion of operating cash flow and delivered $1.4 billion of free cash flow. The durability of our cash generation enables us to consistently reinvest in the business, strengthen our balance sheet and grow shareholder returns. Debt reduction remains a top priority, and we expect to reach gross leverage of approximately 2x by year-end," Snell said.

Adjusted net debt of $13.6 billion at June quarter end, a reduction of $709 million from the end of 2025 Payments on debt and finance lease obligations for the June quarter of $536 million Weighted average interest rate of 4.9 percent with 78 percent fixed rate debt and 22 percent variable rate debt Adjusted operating cash flow in the June quarter of $1.7 billion, and with gross capital expenditures of $1.4 billion, free cash flow was $209 million Air Traffic Liability ended the quarter at $10.0 billion Liquidity4 of $7.7 billion at quarter-end, including $3.1 billion in undrawn revolver capacity

4 Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities

June Quarter 2026 Highlights

Operations, Network and Fleet

Led all carriers5 in on-time arrival and departure performance for the quarter and set an all-time6 Delta record for domestic mishandled baggage rate (MBR). Implemented proprietary Baggage AI technology in Atlanta which has driven improvement in Atlanta's year-to-date MBR by over 25 percent versus last year's strong baseline, with June improving 50 percent. Took delivery of 11 aircraft in the June quarter, including A350-900, A321neo, and A220-300 aircraft. Launched daily non-stop service from Los Angeles to Hong Kong and Chicago O'Hare, adding connectivity to key business markets from Los Angeles. Launched service to Porto, Malta, and Sardinia while adding service to Madrid, Nice, Rome, and Barcelona. Grew MRO presence and partnership portfolio with IndiGo (CFM56 engines) & LATAM (A320 components). Culture and People

Continued to invest in the Delta people with a 4 percent pay raise for eligible employees worldwide. Accrued nearly $500 million in profit sharing year-to-date towards next February's payout. Named to Points of Light's Civic 50 list for the ninth year in a row, the only commercial airline recognized among companies noted for their corporate social responsibility and civic engagement. Transported more than two dozen WWII veterans from Atlanta to Normandy, France to participate in D-Day remembrance ceremonies, honoring the 82nd anniversary of the Allied landings. Ranked No. 1 in Talent Readiness among the Wall Street Journal Leadership Institute's Best Companies for the Future index. Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the ninth consecutive year with 15,911 units of blood collected at 392 blood drives in the last 12 months. Customer Experience and Loyalty

Ranked No. 1 best U.S. airline for eighth consecutive year by The Points Guy. Unveiled Delta's next-generation Delta One suite for the A350-1000 fleet and announced an expanded suite offering for the A330ceo fleet, extending Delta's lead with the most business class suites of any U.S. airline. Enhanced Delta - American Express co-brand card portfolio with new travel benefits including a Delta exclusive benefit allowing card Members to check a second bag free on domestic Delta flights with no increase to the annual fee. Over 95 percent of aircraft are already equipped with fast, free Wi-Fi for SkyMiles members, and will reach 100 percent by year-end. New satellite upgrades are also coming online soon to deliver faster speeds and broader global coverage. Expanded Delta Sync partnerships, including new collaborations with The Wall Street Journal and Fox ONE to further enhance the onboard experience. Enhanced the partnership with T-Mobile, now offering T-Mobile customers who link their SkyMiles membership a complimentary premium beverage on board. Relaunched and expanded the decade-long partnership with Airbnb allowing SkyMiles members to earn miles on where they stay and on experiences once they arrive. Continued Delta Concierge rollout to over 50 percent of SkyMiles members, offering expanded self‑service and messaging during travel through an AI-enabled digital assistant in the Fly Delta app. Opened a second Delta One Lounge at LAX, growing system to five Delta One Lounges and 55 Sky Clubs. Environmental Sustainability

Issued the 2025 Delta Difference Report, highlighting Delta's continued commitment to a sustainable future. Began installation of innovative finlet aerodynamic devices on 737 fleet reducing emissions and fuel burn.

5 FlightStats preliminary data for Delta flights system wide. All carriers is defined as competitive set (AA, AS, B6, DL, UA, and WN) from Apr 1 - Jun 30, 2026. On-time performance includes A0, and A14. Departure performance defined as D0

6 Excludes COVID years

June Quarter 2026 Results

June quarter results have been adjusted primarily for third-party refinery sales, gains/losses on investments and Monroe hedge results as described in the reconciliations in Note A.

GAAP

$
Change

%
Change

($ in millions except per share and unit costs)

2Q26

2Q25

Operating income

1,864

2,102

(238)

(11) %

Operating margin

9.4 %

12.6 %

 (3.2) pts

(25) %

Pre-tax income

2,009

2,574

(565)

(22) %

Pre-tax margin

10.2 %

15.5 %

 (5.3) pts

(34) %

Net income

1,604

2,130

(526)

(25) %

Diluted earnings per share

2.44

3.27

(0.83)

(25) %

Operating revenue

19,757

16,648

3,109

19 %

Total revenue per available seat mile (TRASM) (cents)

25.11

21.44

3.67

17 %

Operating expense

17,893

14,546

3,347

23 %

Cost per available seat mile (CASM) (cents)

22.74

18.73

4.01

21 %

Fuel expense

4,109

2,458

1,651

67 %

Average fuel price per gallon

3.66

2.21

1.45

66 %

Operating cash flow

1,596

1,856

(260)

(14) %

Capital expenditures

1,458

1,209

249

21 %

Total debt and finance lease obligations

13,952

15,056

(1,104)

(7) %

Adjusted

$
Change

%
Change

($ in millions except per share and unit costs)

2Q26

2Q25

Operating income

1,563

2,064

(501)

(24) %

Operating margin

8.8 %

13.3 %

 (4.5) pts

(34) %

Pre-tax income

1,359

1,820

(461)

(25) %

Pre-tax margin

7.7 %

11.7 %

 (4.0) pts

(34) %

Net income

1,027

1,385

(358)

(26) %

Diluted earnings per share

1.56

2.12

(0.56)

(26) %

Operating revenue

17,666

15,507

2,159

13.9 %

TRASM (cents)

22.45

19.97

2.48

12.4 %

Operating expense

16,102

13,443

2,659

20 %

Non-fuel cost7

11,091

10,247

844

8 %

Non-fuel unit cost (CASM-Ex) (cents)

14.09

13.20

0.89

6.8 %

Fuel expense

4,410

2,497

1,913

77 %

Average fuel price per gallon

3.93

2.25

1.68

75 %

Operating cash flow

1,651

1,844

(193)

(10) %

Free cash flow

209

733

(524)

(71) %

Gross capital expenditures

1,442

1,168

274

23 %

Adjusted net debt

13,591

16,316

(2,725)

(17) %

7 Updated definition excludes aircraft fuel and related taxes, Third-party refinery sales, MRO expense, and profit sharing

About Delta Air Lines Through exceptional service and the power of innovation, Delta Air Lines (NYSE: DAL) never stops looking for ways to make every trip feel tailored to every customer. 

There are 100,000 Delta people leading the way to deliver a world-class customer experience on up to 5,500 daily Delta and Delta Connection flights to more than 300 destinations on six continents, connecting people to places and to each other.

Delta served more than 200 million customers in 2025 – safely, reliably and with industry-leading customer service innovation – and was recognized by Cirium for being the top on-time airline in North America for the fifth consecutive year.

We remain committed to ensuring that the future of travel is connected, personalized and enjoyable. Our people's genuine, enduring motivation is to make every customer feel welcomed and cared for across every point of their journey with us.

Headquartered in Atlanta, Delta operates significant hubs and key markets in Amsterdam, Atlanta, Bogota, Boston, Detroit, Lima, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-JFK and LaGuardia, Paris-Charles de Gaulle, Salt Lake City, Santiago (Chile), Sao Paulo, Seattle, Seoul-Incheon and Tokyo.

As the leading global airline, Delta's mission to connect the world creates opportunities, fosters understanding and expands horizons by connecting people and communities to each other and to their own potential. 

A founding member of the SkyTeam alliance and powered by innovative and strategic partnerships throughout the world with Aeromexico, Air France-KLM, China Eastern, Korean Air, LATAM, Virgin Atlantic and WestJet, Delta brings more choice and competition to customers worldwide. Delta's premium product line is elevated by its unique partnership with Wheels Up Experience.

Delta is America's most-awarded airline thanks to the dedication, passion and professionalism of its people. In addition to the award from Cirium, Delta has been recognized as the World's Most Admired Airline and one of the Best 100 Companies to Work For according to Fortune; the top carrier for business travelers by Business Travel News; and best U.S. airline by Forbes Travel Guide's Verified Air Travel Awards. In addition, Delta has been named to the Civic 50 by Points of Light as one of the most community minded companies in the U.S.

Forward Looking Statements
Statements made in this press release that are not historical facts, including statements regarding our estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments or strategies for the future, should be considered "forward-looking statements" under the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements are not guarantees or promised outcomes and should not be construed as such. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the estimates, expectations, beliefs, intentions, projections, goals, aspirations, commitments and strategies reflected in or suggested by the forward-looking statements. These risks and uncertainties include, but are not limited to, the possible effects of serious accidents involving our aircraft or aircraft of our airline partners; breaches or lapses in the security of technology systems we use and rely on, which could compromise the data stored within them, as well as failure to comply with evolving global privacy and security regulatory obligations or adequately address increasing customer focus on privacy issues and data security; disruptions in our information technology infrastructure; failure of the technology we use or depend on to perform effectively, including new and emerging technologies; increases in the price of aircraft fuel; extended disruptions in the supply of aircraft fuel, including from Monroe Energy, LLC ("Monroe"), our wholly-owned subsidiary that operates the Trainer refinery; failure to achieve expected results or returns from our commercial relationships with airlines in other parts of the world and the investments we have in certain of those airlines; the effects of a significant disruption in the operations or performance of third parties on which we rely; failure to comply with the financial or other covenants in our financing agreements; labor-related disruptions; the effects on our business of seasonality and other factors beyond our control, such as changes in value in our equity investments, severe weather conditions, natural disasters or other environmental events, including from the impact of climate change; failure or inability of insurance to cover a significant liability at Monroe's refinery; failure to comply with existing and future environmental regulations to which Monroe's refinery operations are subject, including those relating to the discharge of materials into the environment, waste management, pollution prevention measures and greenhouse gas emissions; significant damage to our reputation and brand, including from exposure to significant adverse publicity or inability to achieve certain sustainability goals; our ability to retain senior management and other key employees, and to maintain our company culture; disease outbreaks or other public health threats, and measures implemented to combat them; the effects of terrorist attacks, geopolitical conflict or security events; competitive conditions in the airline industry; extended interruptions or disruptions in service at major airports where we operate; significant problems associated with types of aircraft or engines we operate; the effects of extensive regulatory and legal compliance requirements we are subject to; the impact of laws and regulations governing environmental protection, including but not limited to regulation of hazardous substances, increased regulation to reduce emissions and other risks associated with climate change, and the cost of compliance with more stringent environmental regulations; and unfavorable economic or political conditions in the markets in which we operate or volatility in currency exchange rates.

Additional information concerning risks and uncertainties that could cause differences between actual results and forward-looking statements is contained in our Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 and other filings filed with the SEC from time to time. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our views only as of the date of this press release, and which we undertake no obligation to update except to the extent required by law.

DELTA AIR LINES, INC

Consolidated Statements of Operations

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(in millions, except per share data)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Operating Revenue:

Passenger

$    15,607

$    13,867

$     1,740

13 %

$    27,909

$    25,347

$     2,562

10 %

Cargo

294

212

82

39 %

521

421

100

24 %

Other

3,856

2,569

1,287

50 %

7,181

4,920

2,261

46 %

Total operating revenue

19,757

16,648

3,109

19 %

35,611

30,688

4,923

16 %

Operating Expense:

Salaries and related costs

4,762

4,402

360

8 %

9,302

8,485

817

10 %

Aircraft fuel and related taxes

4,109

2,458

1,651

67 %

6,851

4,869

1,982

41 %

Refinery expense

2,091

1,141

950

83 %

3,745

2,203

1,542

70 %

Contracted services

1,263

1,155

108

9 %

2,452

2,276

176

8 %

Landing fees and other rents

978

878

100

11 %

1,891

1,729

162

9 %

Aircraft maintenance materials and outside repairs

689

591

98

17 %

1,397

1,237

160

13 %

Regional carrier expense

673

651

22

3 %

1,322

1,264

58

5 %

Passenger commissions and other selling expenses

726

673

53

8 %

1,316

1,224

92

8 %

Depreciation and amortization

656

602

54

9 %

1,291

1,209

82

7 %

Passenger service

489

482

7

1 %

918

912

6

1 %

MRO expense

273

229

44

19 %

601

369

232

63 %

Profit sharing

328

470

(142)

(30) %

493

594

(101)

(17) %

Aircraft rent

168

137

31

23 %

311

274

37

14 %

Other

688

677

11

2 %

1,356

1,372

(16)

(1) %

Total operating expense

17,893

14,546

3,347

23 %

33,246

28,017

5,229

19 %

Operating Income

1,864

2,102

(238)

(11) %

2,365

2,671

(306)

(11) %

Non-Operating Income/(Expense):

Interest expense, net

(144)

(172)

28

(16) %

(296)

(350)

54

(15) %

Gain/(loss) on investments, net

349

735

(386)

(53) %

(202)

696

(898)

NM

Loss on extinguishment of debt

(1)

(20)

19

(95) %

(5)

(20)

15

(75) %

Miscellaneous, net

(59)

(71)

12

(17) %

(68)

(102)

34

(33) %

Total non-operating income/(expense), net

145

472

(327)

(69) %

(571)

224

(795)

NM

Income Before Income Taxes

2,009

2,574

(565)

(22) %

1,794

2,895

(1,101)

(38) %

Income Tax Provision

(405)

(444)

39

(9) %

(479)

(525)

46

(9) %

Net Income

$     1,604

$     2,130

$      (526)

(25) %

$     1,315

$     2,370

$    (1,055)

(45) %

Basic Earnings Per Share

$      2.45

$      3.28

$      2.01

$      3.66

Diluted Earnings Per Share

$      2.44

$      3.27

$      2.00

$      3.63

Basic Weighted Average Shares Outstanding

654

649

653

647

Diluted Weighted Average Shares Outstanding

658

652

657

652

DELTA AIR LINES, INC

Passenger Revenue

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(in millions)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Ticket - Main cabin

$    6,851

$    6,347

$      504

8 %

$   12,256

$   11,709

$      547

5 %

Ticket - Premium products

6,920

5,899

1,021

17 %

12,282

10,605

1,677

16 %

Loyalty travel awards

1,247

1,092

155

14 %

2,277

2,033

244

12 %

Travel-related services

589

529

60

11 %

1,094

1,000

94

9 %

Passenger revenue

$   15,607

$   13,867

$    1,740

13 %

$   27,909

$   25,347

$    2,562

10 %

DELTA AIR LINES, INC

Other Revenue

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

(in millions)

2026

2025

$ Change

% Change

2026

2025

$ Change

% Change

Refinery

$    2,091

$    1,141

$      950

83 %

$    3,745

$    2,203

$    1,542

70 %

Loyalty and related

1,344

1,127

217

19 %

2,565

2,209

356

16 %

MRO

315

239

76

32 %

695

390

305

78 %

Miscellaneous

106

62

44

71 %

176

118

58

49 %

Other revenue

$    3,856

$    2,569

$    1,287

50 %

$    7,181

$    4,920

$    2,261

46 %

DELTA AIR LINES, INC

Total Revenue

(Unaudited)

Increase (Decrease)

2Q26 vs 2Q25

Revenue

2Q26 ($M)

Change

Unit Revenue

Yield

Capacity

Domestic

$         10,673

15 %

12 %

13 %

2 %

Atlantic

3,112

8 %

7 %

9 %

1 %

Latin America

990

4 %

12 %

13 %

(7) %

Pacific

832

15 %

7 %

7 %

8 %

Passenger Revenue

$         15,607

13 %

11 %

12 %

1 %

Cargo Revenue

294

39 %

Other Revenue

3,856

50 %

Total Revenue

$         19,757

19 %

17 %

       Third Party Refinery Sales

(2,091)

Total Revenue, adjusted (See Note A)

$         17,666

13.9 %

12.4 %

DELTA AIR LINES, INC.

Statistical Summary

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

June 30,

2026

2025

Change

2026

2025

Change

Revenue passenger miles (millions)

66,767

66,417

1

%

123,236

122,095

1

%

Available seat miles (millions)

78,694

77,645

1

%

147,857

146,045

1

%

Passenger mile yield (cents)

23.38

20.88

12

%

22.65

20.76

9

%

Passenger revenue per available seat mile (cents)

19.83

17.86

11

%

18.88

17.36

9

%

Total revenue per available seat mile (cents)

25.11

21.44

17

%

24.08

21.01

15

%

TRASM, adjusted - see Note A (cents)

22.45

19.97

12.4

%

21.55

19.50

10

%

Cost per available seat mile (cents)

22.74

18.73

21

%

22.48

19.18

17

%

CASM-Ex  - see Note A (cents)

14.09

13.20

6.8

%

14.58

13.68

7

%

Passenger load factor

84.8 %

85.5 %

(1)

pt

83.3 %

83.6 %

—

pts

Fuel gallons consumed (millions)

1,122

1,112

1

%

2,110

2,088

1

%

Average price per fuel gallon

$     3.66

$     2.21

66

%

$      3.25

$      2.33

39

%

Average price per fuel gallon, adjusted - see Note A

$     3.93

$     2.25

75

%

$      3.32

$      2.34

42

%

DELTA AIR LINES, INC

Consolidated Statements of Cash Flows

(Unaudited)

Three Months Ended

June 30,

(in millions)

2026

2025

Cash Flows From Operating Activities:

Net income

$           1,604

$           2,130

Depreciation and amortization

656

602

(Gain) loss on fair value investments

(337)

(731)

Changes in air traffic liability

(721)

(1,129)

Changes in profit sharing

325

469

Changes in balance sheet and other, net

69

516

     Net cash provided by operating activities

1,596

1,856

Cash Flows From Investing Activities:

Property and equipment additions:

Flight equipment, including advance payments

(1,244)

(996)

Ground property and equipment, including technology

(214)

(213)

Acquisition of strategic investments and related

(51)

—

Other, net

(3)

10

     Net cash used in investing activities

(1,512)

(1,199)

Cash Flows From Financing Activities:

Proceeds from long-term obligations

103

1,998

Payments on debt and finance lease obligations

(536)

(2,941)

Cash dividends

(123)

(97)

Other, net

10

(29)

     Net cash used in financing activities

(546)

(1,069)

Net Decrease in Cash, Cash Equivalents and Restricted Cash Equivalents

(462)

(412)

Cash, cash equivalents and restricted cash equivalents at beginning of period

5,235

3,941

Cash, cash equivalents and restricted cash equivalents at end of period

$           4,773

$           3,529

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total of the
same such amounts shown above:

Current assets:

     Cash and cash equivalents

$           4,665

$           3,331

     Restricted cash included in prepaid expenses and other

86

96

Other assets:

     Restricted cash included in other noncurrent assets

22

102

Total cash, cash equivalents and restricted cash equivalents

$           4,773

$           3,529

DELTA AIR LINES, INC

Consolidated Balance Sheets

(Unaudited)

June 30,

December 31,

(in millions)

2026

2025

ASSETS

Current Assets:

Cash and cash equivalents

$                4,665

$                4,310

Accounts receivable, net

4,307

2,850

Fuel, expendable parts and supplies inventories, net

2,558

1,601

Prepaid expenses and other

2,706

2,207

     Total current assets

14,236

10,968

Noncurrent Assets:

Property and equipment, net

41,544

39,743

Operating lease right-of-use assets

6,162

6,244

Goodwill

9,753

9,753

Identifiable intangibles, net

5,962

5,966

Equity investments

4,041

4,222

Other noncurrent assets

4,623

4,421

     Total noncurrent assets

72,085

70,349

Total assets

$               86,321

$               81,317

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities:

Current maturities of debt and finance leases

$                3,442

$                1,605

Current maturities of operating leases

869

809

Air traffic liability

10,020

7,157

Accounts payable

6,738

5,226

Accrued salaries and related benefits

3,935

4,906

Loyalty program deferred revenue

5,243

4,876

Fuel card obligation

1,100

1,100

Other accrued liabilities

2,257

1,945

     Total current liabilities

33,604

27,624

Noncurrent Liabilities:

Debt and finance leases

10,510

12,507

Noncurrent operating leases

5,163

5,353

Pension, postretirement and related benefits

3,066

3,156

Loyalty program deferred revenue

4,327

4,386

Deferred income taxes, net

3,916

3,444

Other noncurrent liabilities

3,920

3,994

     Total noncurrent liabilities

30,902

32,840

Commitments and Contingencies

Stockholders' Equity:

21,815

20,853

Total liabilities and stockholders' equity

$               86,321

$               81,317

Note A: The following tables show reconciliations of non-GAAP financial measures. The reasons Delta uses these measures are described below. Reconciliations may not calculate exactly due to rounding.

Delta sometimes uses information ("non-GAAP financial measures") that is derived from the Consolidated Financial Statements, but that is not presented in accordance with accounting principles generally accepted in the U.S. ("GAAP"). Under the Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. The tables below show reconciliations of non-GAAP financial measures used in this release to the most directly comparable GAAP financial measures.

Forward Looking Projections. Delta is not able to reconcile forward looking non-GAAP financial measures without unreasonable effort because the adjusting items such as those used in the reconciliations below will not be known until the end of the period and could be significant.

Adjustments. These reconciliations include certain adjustments to GAAP measures that are made to provide comparability between the reported periods, if applicable, and for the reasons indicated below:

Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry.

MTM adjustments and settlements on hedges. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. MTM fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts closed (i.e., settled) during the applicable period. With respect to hedges related to Monroe's inventory, settlements often occur before the related refinery inventory is sold. Beginning in 2026, settlement gains and losses related to Monroe's inventory that remains on-hand at period end are excluded from our adjusted results. These settlement gains and losses will be reflected in adjusted results during the period the inventory is sold. This change was made to match the timing of expense and revenue recognition and we have similarly adjusted the presentation of reconciliations for prior periods included here.

MTM adjustments on investments. Unrealized MTM gains/losses result from our equity investments that are accounted for at fair value in non-operating expense. The gains/losses are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares. Adjusting for these gains/losses allows investors to better understand and analyze our core operational performance in the periods shown.

Loss on extinguishment of debt. This adjustment relates to early termination of a portion of our debt. Adjusting for these losses allows investors to better understand and analyze our core operational performance in the periods shown.

Operating Revenue, adjusted and Total Revenue Per Available Seat Mile ("TRASM"), adjusted

Three Months Ended

2Q26 vs 2Q25
% Change

2Q26 vs 2Q25
$ Change

(in millions)

June 30, 2026

September 30, 2025

June 30, 2025

Operating revenue

$               19,757

$             16,673

$               16,648

Adjusted for:

Third-party refinery sales

(2,091)

(1,476)

(1,141)

Operating revenue, adjusted

$               17,666

$             15,197

$               15,507

14 %

$2,159

Three Months Ended

% Change

June 30, 2026

September 30, 2025

June 30, 2025

TRASM (cents)

25.11

21.09

21.44

Adjusted for:

Third-party refinery sales

(2.66)

(1.87)

(1.47)

TRASM, adjusted

22.45

19.22

19.97

12.4 %

Six Months Ended

June 30, 2026

June 30, 2025

TRASM (cents)

24.08

21.01

Adjusted for:

Third-party refinery sales

(2.53)

(1.51)

TRASM, adjusted

21.55

19.50

Operating Income, adjusted

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Operating income

$                1,864

$                2,102

Adjusted for:

MTM adjustments and settlements on hedges

(301)

(39)

Operating income, adjusted

$                1,563

$                2,064

Operating Margin, adjusted

Three Months Ended

June 30, 2026

June 30, 2025

Operating margin

9.4 %

12.6 %

Adjusted for:

Third-party refinery sales

0.9

0.9

MTM adjustments and settlements on hedges

(1.5)

(0.2)

Operating margin, adjusted

8.8 %

13.3 %

Pre-Tax Income, Net Income, and Diluted Earnings per Share, adjusted

Three Months Ended

Three Months Ended

June 30, 2026

June 30, 2026

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           2,009

$            (405)

$           1,604

$                2.44

Adjusted for:

MTM adjustments on investments

(349)

MTM adjustments and settlements on hedges

(301)

Loss on extinguishment of debt

1

Non-GAAP

$           1,359

$            (332)

$           1,027

$                1.56

Three Months Ended

Three Months Ended

September 30, 2025

September 30, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           1,777

$            (360)

$           1,417

$                2.17

Adjusted for:

MTM adjustments on investments

(311)

MTM adjustments and settlements on hedges

5

Loss on extinguishment of debt

6

Non-GAAP

$           1,477

$            (363)

$           1,114

$                1.70

Three Months Ended

Three Months Ended

June 30, 2025

June 30, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           2,574

$            (444)

$           2,130

$                3.27

Adjusted for:

MTM adjustments on investments

(735)

MTM adjustments and settlements on hedges

(39)

Loss on extinguishment of debt

20

Non-GAAP

$           1,820

$            (435)

$           1,385

$                2.12

Year Ended

Year Ended

December 31, 2025

December 31, 2025

Pre-Tax

Income

Net

Earnings

(in millions, except per share data)

Income

Tax

Income

Per Diluted Share

GAAP

$           6,185

$          (1,180)

$           5,005

$                  7.66

Adjusted for:

MTM adjustments on investments

(1,212)

MTM adjustments and settlements on hedges

(21)

Loss on extinguishment of debt

26

Non-GAAP

$           4,977

$          (1,179)

$           3,798

$                  5.81

Pre-Tax Margin, adjusted

Three Months Ended

June 30, 2026

June 30, 2025

Pre-tax margin

10.2 %

15.5 %

Adjusted for:

Third-party refinery sales

0.8

0.8

MTM adjustments on investments

(1.8)

(4.4)

MTM adjustments and settlements on hedges

(1.5)

(0.2)

Loss on extinguishment of debt

—

0.1

Pre-tax margin, adjusted

7.7 %

11.7 %

Operating Cash Flow, adjusted. We present operating cash flow, adjusted because management believes adjusting for the following item provides a more meaningful measure for investors:

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities. We adjust for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's operating cash flow that is core to our operations in the periods shown.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Net cash provided by operating activities

$                1,596

$                1,856

Adjusted for:

Net cash flows related to certain airport construction projects and other

55

(12)

Operating cash flow, adjusted

$                1,651

$                1,844

Six Months Ended

(in millions)

June 30, 2026

Net cash provided by operating activities

$                4,027

Adjusted for:

Net cash flows related to certain airport construction projects and other

38

Net cash provided by operating activities, adjusted

$                4,065

Operating revenue, adjusted related to premium products and diverse revenue streams

Three Months Ended

% Change

(in millions)

June 30, 2026

June 30, 2025

Operating revenue

$             19,757

$             16,648

Adjusted for:

     Third-party refinery sales

(2,091)

(1,141)

Operating revenue, adjusted

$             17,666

$             15,507

Less: main cabin revenue

(6,851)

(6,347)

Operating revenue, adjusted related to premium products and diverse revenue streams

$             10,815

$              9,160

18 %

Percent of operating revenue, adjusted related to premium products and diverse revenue streams

61 %

59 %

 2 pts

Operating Expense, adjusted

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Operating expense

$               17,893

$               14,546

Adjusted for:

Third-party refinery sales

(2,091)

(1,141)

MTM adjustments and settlements on hedges

301

39

Operating expense, adjusted

$               16,102

$               13,443

Adjusted Non-Fuel Cost and Non-Fuel Unit Cost or Cost per Available Seat Mile, ("CASM-Ex")

We adjust operating expense and CASM for certain items described above, as well as the following items and reasons described below:

Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance.

MRO expense. We adjust for MRO expenses because this adjustment allows investors to better understand and analyze the airline's recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Operating expense

$               17,893

$               14,546

Adjusted for:

Aircraft fuel and related taxes

(4,109)

(2,458)

Third-party refinery sales

(2,091)

(1,141)

MRO expense

(273)

(229)

Profit sharing

(328)

(470)

Non-Fuel Cost

$               11,091

$               10,247

Three Months Ended

2Q26 vs 2Q25
% Change

June 30, 2026

September 30, 2025

June 30, 2025

CASM (cents)

22.74

18.96

18.73

Adjusted for:

Aircraft fuel and related taxes

(5.22)

(3.25)

(3.17)

Third-party refinery sales

(2.66)

(1.87)

(1.47)

MRO expense

(0.35)

(0.27)

(0.29)

Profit sharing

(0.42)

(0.50)

(0.61)

CASM-Ex

14.09

13.08

13.20

6.8 %

Six Months Ended

% Change

June 30, 2026

June 30, 2025

CASM (cents)

22.48

19.18

Adjusted for:

Aircraft fuel and related taxes

(4.63)

(3.33)

Third-party refinery sales

(2.53)

(1.51)

MRO expense

(0.41)

(0.25)

Profit sharing

(0.33)

(0.41)

CASM-Ex

14.58

13.68

7 %

Total fuel expense, adjusted and Average fuel price per gallon, adjusted

Average Price Per Gallon

Three Months Ended

Three Months Ended

June 30,

June 30,

% Change

June 30,

June 30,

% Change

(in millions, except per gallon data)

2026

2025

2026

2025

Total fuel expense

$        4,109

$        2,458

$          3.66

$          2.21

Adjusted for:

MTM adjustments and settlements on hedges

301

39

0.27

0.04

Total fuel expense, adjusted

$        4,410

$        2,497

77 %

$          3.93

$          2.25

75 %

Average Price Per Gallon

Six Months Ended

Six Months Ended

June 30,

June 30,

% Change

June 30,

June 30,

% Change

(in millions, except per gallon data)

2026

2025

2026

2025

Total fuel expense

$        6,851

$        4,869

$          3.25

$          2.33

Adjusted for:

MTM adjustments and settlements on hedges

151

24

0.07

0.01

Total fuel expense, adjusted

$        7,001

$        4,892

43 %

$          3.32

$          2.34

42 %

Free Cash Flow. We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Free cash flow is also used internally as a component of our incentive compensation programs. Free cash flow is defined as net cash from operating activities and net cash from investing activities, adjusted for (i) pension plan contributions, (ii) net cash flows related to certain airport construction projects and other, and (iii) strategic investments and related. These adjustments are made for the following reasons:

Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations.

Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items, which were primarily funded by cash restricted for airport construction, to provide investors a better understanding of the company's free cash flow and capital expenditures that are core to our operations in the periods shown.

Strategic investments and related. Certain cash flows related to our investments in and related transactions with other airlines and associated companies are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Net cash provided by operating activities

$                1,596

$                1,856

Net cash used in investing activities

(1,512)

(1,199)

Adjusted for:

Pension plan contributions

4

47

Net cash flows related to certain airport construction projects and other

70

28

Strategic investments and related

51

—

Free cash flow

$                  209

$                  733

Six Months Ended

(in millions)

June 30, 2026

Net cash provided by operating activities

$                4,027

Net cash used in investing activities

(2,775)

Adjusted for:

Pension plan contributions

4

Net cash flows related to certain airport construction projects and other

75

Strategic investments and related

105

Free cash flow

$                1,436

Adjusted Net Debt. We use adjusted gross debt, including fleet operating lease liabilities (comprised of aircraft and engine leases and regional aircraft leases embedded within our capacity purchase agreements) and unfunded pension liabilities (if applicable), in addition to adjusted debt and finance leases, to present estimated financial obligations. We reduce adjusted total debt by cash, cash equivalents, and LGA restricted cash, resulting in adjusted net debt, to present the amount of assets needed to satisfy the debt. Management believes this metric is helpful to investors in assessing the company's overall debt profile.

(in millions)

June 30, 2026

December 31,
2025

June 30, 2025

2Q26 vs 4Q25
$ Change

Debt and finance lease obligations

$            13,952

$            14,113

$            15,056

Plus: sale-leaseback financing liabilities

1,749

1,779

1,807

Plus: unamortized discount/(premium) and debt issue cost, net and other

(12)

(6)

5

Adjusted debt and finance lease obligations

$            15,688

$            15,885

$            16,868

Plus: fleet operating lease liabilities

2,591

2,780

2,880

Adjusted gross debt

$            18,279

$            18,665

$            19,749

Less: cash and cash equivalents

(4,665)

(4,310)

(3,331)

Less: LGA restricted cash

(22)

(56)

(102)

Adjusted net debt

$            13,591

$            14,300

$            16,316

$         (709)

Gross Capital Expenditures. We adjust capital expenditures for the following item to determine gross capital expenditures for the reason described below:

Net cash flows related to certain airport construction projects. Cash flows related to certain airport construction projects are included in capital expenditures. We adjust for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either funded with restricted cash specific to these projects or reimbursed by a third party.

Three Months Ended

(in millions)

June 30, 2026

June 30, 2025

Flight equipment, including advance payments

$                1,244

$                  996

Ground property and equipment, including technology

214

213

Adjusted for:

Net cash flows related to certain airport construction projects

(16)

(41)

Gross capital expenditures

$                1,442

$                1,168

After-tax Return on Invested Capital ("ROIC"). We present after-tax return on invested capital as management believes this metric is helpful to investors in assessing the company's ability to generate returns using its invested capital. Return on invested capital is tax-effected adjusted operating income (using our effective tax rate for each respective period) divided by average adjusted invested capital. Average stockholders' equity and average adjusted gross debt are calculated using amounts as of the end of the current period and comparable period in the prior year. All adjustments to calculate ROIC are intended to provide a more meaningful comparison of our results to comparable companies.

Interest expense included in aircraft rent. This adjustment relates to interest expense related to operating lease transactions. Adjusting for these results allows investors to better understand our core operational performance in the periods shown as it neutralizes the effect of lease financing structure.

Twelve Months Ended

(in millions)

June 30, 2026

Operating income

$                  5,516

Adjusted for:

MTM adjustments and settlements on hedges

(148)

Interest expense included in aircraft rent

132

Adjusted operating income

$                  5,500

Tax effect

(1,294)

Tax-effected adjusted operating income

$                  4,206

Average stockholders' equity

$                19,628

Average adjusted gross debt

19,014

Average adjusted invested capital

$                38,642

After-tax Return on Invested Capital

10.9 %

SOURCE Delta Air Lines

Soccer fans watch Spain celebrate over over Saudi Arabia during the FIFA World Cup 2026 match on June 21st at Atlanta Stadium. (Photo by Rich von Biberstein)

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The airline industry earnings season got off to a good start Friday as Delta reported strong second quarter results, beat Wall Street estimates and forecast a profitable full year, all despite absorbing an estimated $4 billion in increased 2026 fuel costs. “We’re seeing strong demand for our product,” Delta CFO Erik Snell told reporters on a media call on Thursday. He cited “Demand for all of our segments across the board, not only our premium product.”

As the industry continues to reflect broader economic trends, Snell said “Demand across the board for not only Delta but for the travel experience is so great. People are disproportionately placing their discretionary income in experiences and travel.”

For instance, he cited demand stimulated by World Cup games in the United States. Delta was initially concerned, he said, “because these types of events don’t always have a positive impact,” as some travelers avoid destinations where large crowds are expected. However, he said, “We’ve been pleasantly surprised with the inbound traffic to the U.S. to support the World Cup. We’ve certainly been a beneficiary of that travel.”

In general, airlines have been able to raise fares sufficiently to recapture much of the vast increase in the cost of fuel due to the Iran war. “We know the playbook at times like this when fuel is high,” Snell said, noting Delta’s $4 billion in increased full year fuel costs. In the second quarter, he said, Delta recovered about 60% of its added fuel cost, with that recovery rate expected to increase in the second half. Second quarter fuel costs were about $2 billion higher due, he said

When a reporter asked about the recent resumption of bombing in Iran, Snell responded, “Fuel will continue to remain volatile” and reminded that even “with higher fuel prices, we have managed to generate meaningful profit.” He noted that Delta’s ownership of a refinery benefits the carrier, contributing11 cents to the second quarter per share profit.

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Delta’s continued leadership of the airline industry, which has persisted since the turn of the century bankruptcies, has been reflected in its stock price gains. Through Thursday, Delta shares were up 29% year-to-date. Southwest shares were up 19%, United was up 14% and America was up 10%.

For the second quarter, Delta reported pre-tax income of $1.359 billion, down 25% from $1.820 billion in the same quarter a year earlier. Revenue was $17.7 billion, up 14%. Adjusted per share earnings were $1.56: analysts had estimated $2.02 per share. The carrier’s operating margin was 9%. In a press release, the carrier said it expects “continued momentum in 3Q with mid-teens revenue growth and double-digit margin,” as well as full-year adjusted earnings per share of $6.50 to $7.50, up 20% year over year.

Delta also said American Express remuneration grew 16% to $2.4 billion. Snell said remuneration will total $9 billion for the full year. Credit card partnerships have become increasingly important to the industry, with all three global carriers saying they eventually expect annual remuneration of $10 billion. Delta/American Express continue to lead the segment.

Delta’s gains reflected the broader expectations for the industry. In a note released Wednesday, Bank of America analyst Andrew Didora wrote, “We see a constructive setup into 2Q26 earnings, driven by strong demand trends and significantly lower fuel prices. Industry pricing has remained firm following the spring fare increases, while booking trends suggest a greater share of 3Q26 demand remains exposed to higher fares.”

Didora said industry capacity growth “remains relatively modest through the summer before accelerating in the fourth quarter,” noting “While the near-term supply backdrop remains supportive, we expect more capacity and lower fuel to result in moderating unit revenues.

Delta Air Lines Inc (NYSE:DAL) is expected to report second-quarter results slightly above the upper end of its previously guided earnings range, though investors are likely to focus more closely on the airline's outlook for the third quarter and full year, according to UBS.

The brokerage said it expects Delta to report second-quarter earnings slightly above the high end of its guidance range of $1 to $1.50 per share, in line with broader market expectations.

"Importantly, we think its forward outlook will be the key focus on the print," the analysts wrote.

For the third quarter, UBS said investors are generally expecting earnings guidance of $2 to $2.50 per share on mid-teens revenue growth. UBS forecasts third-quarter earnings of $2.51 per share, compared with Wall Street consensus of $2.03.

The analysts added that Delta is likely to take a conservative approach to its fuel assumptions for the third and fourth quarters given that oil prices have moved higher.

On costs, UBS said the market generally expects second-quarter non-fuel unit costs, or CASM excluding fuel, to increase more than 7% year over year. Delta had previously indicated that second-quarter CASM-ex growth would be broadly in line with the 6.3% increase recorded in the first quarter, but UBS believes crew scheduling issues were likely more severe than expected and may have increased cost pressures.

For the third quarter, the firm expects CASM-ex growth of 6% to 7%, with crew scheduling disruptions likely to persist but be less of a drag than in the second quarter.

UBS also noted that Delta's refinery operations are expected to contribute a benefit of about $0.10 to $0.15 per share in the third quarter at most, although profits could be lower following the recent fire at the company's Monroe refinery.

Looking ahead to fiscal 2026, UBS said investor expectations for Delta's full-year guidance vary following the stock's roughly 28% gain year to date. The brokerage believes the market is looking for earnings guidance in the range of $6 to $7 per share, compared with its own estimate of $6.70 and the Wall Street consensus of $5.99.

That compares with Delta's initial fiscal 2026 guidance of $6.50 to $7.50 per share issued in January.

UBS noted that achieving the lower end of that original range would imply fourth-quarter earnings of about $2.00 per share, assuming third-quarter earnings are around the midpoint of the expected $2 to $2.50 range.

The analysts cautioned that maintaining the original guidance range would require fourth quarter revenue growth to remain consistent with the third quarter despite tougher year-over-year comparisons and the possibility of weaker consumer demand.

"While its possible DAL guides to this range, we think one has to assume Q4 revenue growth remains consistent with 3Q despite tougher compares and possibility of greater consumer elasticity kicking in by then,” the analysts wrote.

“In our view, that's a bit optimistic, notwithstanding some modest benefit from greater portion of booking curve exposed to fare increases in Q4 versus Q3.”

UBS maintained its ‘Buy’ rating on Delta Air Lines with an unchanged price target of $107, implying upside from current levels of $87.

Delta Air Lines is dividing up the front of the plane into even smaller groups, offering a new "basic" fare for business and first classes that comes without perks like free seat selection and airport lounge access.

The carrier is following United Airlines, which made a similar change earlier this year to its Polaris long-haul business class and other higher-tier cabins. Carriers are seeking to maximize what they can get out of high-spending customers, whose resilient travel demand has helped bolster the industry.

Basic tickets in the Delta One lie-flat, long-haul cabin will go by the new name Basic Business, the airline said Wednesday. There's a similar basic product for first class, which is more common on shorter-haul routes and in premium economy.

That means customers on those tickets will get seats assigned at check-in, earn fewer miles than more expensive options, only be allowed to make changes or cancellations for a fee and do not have the option for same-day standby or confirmed flight changes.

The seats go on sale Wednesday for flights starting in September and are only available in select markets. Delta didn't immediately say which ones would have the basic offering.

Delta, the country's most profitable airline, has been working on these changes for more than a year. Delta's former President Glen Hauenstein said on an earnings call last July that the "segmentation that we've done in main cabin is kind of the template that we're going to bring to all of our premium cabins over time because different people have different needs."

The Atlanta-based carrier reports second-quarter results on Friday.

Read more about airlines' race to win over big spendersUnited ditches more economy seats to make room for bigger premium cabins with new layoutsWhy airline class wars will intensify in 2026Caviar and privacy: Airlines' business-class wars are hereDelta says premium travel is set to overtake coach cabin sales next yearAmerican Airlines is arriving late to the luxury travel boom. Can it catch up?First-class seats are getting so fancy they’re holding up new airplanesAirlines can’t add high-end seats fast enough as travelers treat themselves to first class

Delta Air Lines, Inc. (NYSE:DAL) will release its second quarter earnings report before the opening bell on Friday, July 10.

Analysts expect the Atlanta, Georgia-based company to report quarterly earnings of $1.48 per share, down from $2.10 per share in the year-ago period. The consensus estimate for Delta Air’s quarterly revenue is $18.68 billion. It reported $16.65 billion last year, according to Benzinga Pro.

On June 18, Delta Air Lines raised its quarterly dividend from 18.75 cents to 21.50 cents per share.

Delta Air Lines shares gained 0.7% to close at $93.17 on Monday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

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As American travelers feel the pinch of inflation and elevated airline costs, Delta Air Lines CEO Ed Bastian revealed exactly what it will take for ticket prices to decline, pointing directly to a lack of market supply rather than solely fluctuating fuel costs.

“People ask me all the time – what’s happening with prices?” Bastian told FOX Business’ Maria Bartiromo in an exclusive interview on Tuesday. “Prices will come down when we can fly more, when there’s more supply, it’s a supply and demand. Right now we’re kind of logjammed.”

“There’s not a lot of supply we can bring in because the air traffic control system is congested. As you open up the skies, and you bring more flow, that’s going to help bring pricing down and enable us to bring more people to more places,” he said.

After months of elevated prices due to conflict in Iran and the closing of the Strait of Hormuz, commercial traffic is ramping up in the key waterway after Trump and Iranian President Masoud Pezeshkian last Wednesday signed a 14-point memorandum aimed at ending the war.

On Tuesday, President Trump said that 19 million barrels of oil flowed out of the Strait of Hormuz the day prior.

Ed Bastian speaks during a keynote address at the 2019 Consumer Electronics Show (CES) in Las Vegas, Nevada, on Jan. 8, 2019. REUTERS “I think the initial shock, you know, prices went up about 10 to 15%, not just [at] Delta, across the airline industry. And I think that was probably the right level,” Bastian said. “Oil prices have come down now, so I think we’re in a pretty good spot.”

However, Bastian revealed that rising energy costs directly hit Delta’s bottom line by nearly $2 billion, forcing the airline’s hand in raising ticket prices.

“We had no choice,” he said, while also spotlighting how government spending accountability and deregulation could also bring ticket prices down.

Fuel prices increased due to the conflict in Iran and the closing of the Strait of Hormuz. Chalabala – stock.adobe.com “We have seen more progress being made to eliminate those bottlenecks and continue to allow aviation to flow smoothly in the last year and a half than we’ve had probably in the last number of decades. It’s that significant,” Bastian noted.

“I hope, as an American people, we continue to invest in that future. It’s probably the smartest investment that we can make, because what we’re doing is, we’re making the air flow more smoothly. We’re enabling people not just for safety – safety is always our top priority – but [allowing] for more flights,” which the CEO says ultimately mitigates customer costs.

Ed Bastian speaks on Fox Business about rising fuel prices and their impact on flight costs. Fox News Bastian also discussed how Delta has recaptured investment-grade ratings from all three major credit agencies, won back Berkshire Hathaway as a top shareholder and is expanding localized operations such as “Delta TechOps” into a multibillion-dollar third-party maintenance powerhouse.

“We’re going to get to a point here in the next couple of years where our balance sheet will be a fortress balance sheet, something that’s never really happened in our industry to that point,” he said. “This is the industry that the US holds as the gold standard… So whether it’s Boeing, whether it’s our airlines, our aviation space, our technical prowess and know-how, we’re the gold standard.”