Track market-moving stories before they get noisy

The new CEO has shown a willingness to go in his own direction, but you shouldn't necessarily follow blindly.

Joby Aviation (JOBY) shares climbed nearly 7% in Wednesday trading after the electric air taxi developer finalized a multiyear commercial agreement with Virgin

Delta Air Lines (DAL - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Delta is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Delta, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for DeltaFor the fiscal year ending December 2026, this airline is expected to earn $6.66 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Delta. Over the past three months, the Zacks Consensus Estimate for the company has increased 31%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Delta to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

The Wall Street analyst consensus target price for Delta Air Lines (DAL +0.44%) stock is $108, according to Visible Alpha. It's a target implying 25% upside from the current price of $86. I think this target, and more, is achievable, and the stock is attractive at these levels. Here's why.

Delta Air Lines and cyclicality Starting with valuations, management expects to generate $3 billion to $4 billion in free cash flow (FCF) in 2026. Taking the midpoint of that and applying a back-of-the-envelope valuation for a mature industrial stock at about a 20x multiple yields a market cap of $70 billion, equivalent to a share price of about $106.

Image source: Getty Images.

Of course, the key question here is whether Delta is a mature, stable industrial company poised to steadily grow cash flow, or a cyclical stock whose earnings/cash flow are likely to be highly volatile.

Why Delta's earnings are becoming less cyclical The answer is that airline stocks are never really immune to cyclical pressures. The economy turns down, and people stop flying. However, the reality is that airlines like Delta and United Airlines have made concerted efforts to diversify their income streams by growing premium cabin and ancillary revenues, loyalty programs, and highly successful co-branded credit card revenue.

These income streams and ongoing strength in end demand helped Delta partially absorb a whopping $1.9 billion year-over-year increase in adjusted fuel costs in the second quarter, so that adjusted operating income declined by only $501 million year over year. Nevertheless, Delta still generated $1.56 billion in adjusted operating income.

It's an excellent result in a very difficult cost environment, and given that oil costs have moderated from the $100-a-barrel levels they were at for much of Q2, it's reasonable to expect more favorable conditions going forward.

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Delta's valuation is attractive Moreover, Delta has already baked a $4 billion increase in fuel costs for 2026 into its guidance, and it still expects $3 billion to $4 billion in free cash flow.

This is proof positive that Delta is passing a key stress test of how it might perform in adverse conditions, which means it should be priced more like a mature industrial than a highly cyclical stock. If Delta achieves its earnings-per-share guidance of $6.50 to $7.50, that puts it at a forward price-to-earnings ratio of 11.5 to 13.2 times earnings. Whether you look at cash flow or earnings, these are attractive multiples for a stock that's much less cyclical than many investors think, and $100 looks within reach on that basis.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Delta Air Lines (DAL - Free Report) .

Delta currently has an average brokerage recommendation (ABR) of 1.16, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.16 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 22 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 88% and 8% of all recommendations.

Brokerage Recommendation Trends for DAL

Check price target & stock forecast for Delta here>>>

The ABR suggests buying Delta, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.

Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is DAL a Good Investment?In terms of earnings estimate revisions for Delta, the Zacks Consensus Estimate for the current year has increased 29.7% over the past month to $5.92.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Delta. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Delta may serve as a useful guide for investors.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.

Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Delta Air Lines (DAL - Free Report) Delta Air Lines, Inc. is one of the four carriers that together account for roughly 60% of the U.S. aviation market, following industry consolidation in the early part of this century.

DAL is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 14.57; value investors should take notice.

Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.66 to $5.92 per share. DAL also boasts an average earnings surprise of +5.5%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, DAL should be on investors' short list.

Delta Air Lines Inc (NYSE:DAL) reaffirmed its full-year earnings outlook despite higher fuel costs, a move Bank of America said underscores the carrier's earnings resilience and supports its valuation following stronger-than-expected second quarter results.

Bank of America maintained its ‘Buy’ rating on Delta after the airline reported second-quarter earnings per share above consensus, with the beat driven by lower-than-expected costs while revenue was broadly in line with expectations.

The analysts wrote that Delta's decision to reaffirm its 2026 earnings guidance, first issued in January, was a key takeaway from the report.

"We believe the reiteration of the full year is important and shows the resiliency of DAL's earnings algo regardless of the macro," Bank of America wrote, noting the company maintained its forecast despite absorbing roughly $3.5 billion in higher fuel costs than the firm had originally estimated.

Delta's third quarter earnings guidance of $2 to $2.50 per share was broadly in line with the firm's expectations. Bank of America said the outlook implies mid-teens revenue growth alongside improving unit costs.

The firm noted that investors remain focused on the revenue assumptions implied by Delta's reaffirmed full-year guidance. It said the earnings outlook suggests fourth-quarter revenue growth comparable to the third quarter, even as industry capacity is expected to increase and year-over-year comparisons become more challenging.

Bank of America noted that Delta expressed confidence in maintaining pricing into the fourth quarter, citing an improving mix of corporate travel, continued industry capacity discipline, international booking trends and encouraging fall booking patterns.

On costs, the analysts wrote that unit cost inflation should moderate after rising 6.8% in the second quarter, helped by increasing capacity and easing operational pressures. It added that 2027 could see a return to Delta's longer-term target of low-single-digit unit cost growth as capacity normalizes.

Looking across the sector, Bank of America believes that Delta's results reinforce its positive outlook for airline earnings but may temper expectations for upside from other carriers. The firm said it still expects sequential improvements in unit revenue at airlines including United Airlines due to easier comparisons and slower capacity growth, although higher fuel costs could make it more difficult for some peers to reaffirm full-year earnings guidance as Delta has.

Despite Delta's recent share price re-rating, Bank of America said the stock's valuation could continue to improve, supported by what it described as consistent earnings generation and strong free cash flow through periods of weaker demand and higher fuel prices.

Shares of Delta have added about 24% so far this year, trading hands at about $86 on Monday afternoon.

Delta Air Lines Inc (NYSE:DAL) reaffirmed its full-year earnings outlook despite higher fuel costs, a move Bank of America said underscores the carrier's earnings resilience and supports its valuation following stronger-than-expected second quarter results.

Bank of America maintained its ‘Buy’ rating on Delta after the airline reported second-quarter earnings per share above consensus, with the beat driven by lower-than-expected costs while revenue was broadly in line with expectations.

The analysts wrote that Delta's decision to reaffirm its 2026 earnings guidance, first issued in January, was a key takeaway from the report.

"We believe the reiteration of the full year is important and shows the resiliency of DAL's earnings algo regardless of the macro," Bank of America wrote, noting the company maintained its forecast despite absorbing roughly $3.5 billion in higher fuel costs than the firm had originally estimated.

Delta's third quarter earnings guidance of $2 to $2.50 per share was broadly in line with the firm's expectations. Bank of America said the outlook implies mid-teens revenue growth alongside improving unit costs.

The firm noted that investors remain focused on the revenue assumptions implied by Delta's reaffirmed full-year guidance. It said the earnings outlook suggests fourth-quarter revenue growth comparable to the third quarter, even as industry capacity is expected to increase and year-over-year comparisons become more challenging.

Bank of America noted that Delta expressed confidence in maintaining pricing into the fourth quarter, citing an improving mix of corporate travel, continued industry capacity discipline, international booking trends and encouraging fall booking patterns.

On costs, the analysts wrote that unit cost inflation should moderate after rising 6.8% in the second quarter, helped by increasing capacity and easing operational pressures. It added that 2027 could see a return to Delta's longer-term target of low-single-digit unit cost growth as capacity normalizes.

Looking across the sector, Bank of America believes that Delta's results reinforce its positive outlook for airline earnings but may temper expectations for upside from other carriers. The firm said it still expects sequential improvements in unit revenue at airlines including United Airlines due to easier comparisons and slower capacity growth, although higher fuel costs could make it more difficult for some peers to reaffirm full-year earnings guidance as Delta has.

Despite Delta's recent share price re-rating, Bank of America said the stock's valuation could continue to improve, supported by what it described as consistent earnings generation and strong free cash flow through periods of weaker demand and higher fuel prices.

Shares of Delta have added about 24% so far this year, trading hands at about $86 on Monday afternoon.

Key Takeaways Delta's rally reflects resilient demand, premium revenue growth and improving earnings sentiment. Fuel and non-fuel costs climbed sharply, narrowing upside after Delta's strong rally.Management still expects full-year 2026 earnings per share in the band of $6.50-$7.50. Delta Air Lines (DAL - Free Report) has rallied sharply, helped by resilient demand, premium revenue growth and improving earnings sentiment. The stock’s setup is no longer a simple cheap-airline recovery trade.

For investors comparing DAL with United Airlines (UAL - Free Report) and American Airlines (AAL - Free Report) , the question is whether Delta’s stronger revenue mix still leaves enough upside after the move.

DAL Valuation Still Looks ReasonableDAL trades at 0.85X forward 12-month sales. That is above its five-year median of 0.53X, so the stock is not as deeply discounted as it once was.

Still, the multiple remains below the Zacks sector’s 1.53X and well below the S&P 500’s 5.07X. That gives bulls a valuation argument, even after a 21.9% three-month gain and a 54.3% rise over the past year.

Delta Has Earnings Support From RevisionsEstimate revisions are a key part of the near-term case. The current fiscal-year earnings estimate has moved 25.7% higher over the past four weeks, a strong signal that analyst sentiment has improved.

Delta also posted a 3.3% positive earnings surprise in the latest quarter, with adjusted earnings of $1.56 per share. Management reaffirmed full-year adjusted earnings guidance of $6.50-$7.50 per share and free cash flow guidance of $3-$4 billion.

The airline has an impressive earnings surprise record, having outpaced the Zacks Consensus Estimate in each of the past four quarters. The average beat is 5.5%.

DAL Faces Real Margin PressureThe caution case starts with fuel. Adjusted fuel expense jumped 77% year over year in the June quarter, while adjusted fuel price rose 75% to $3.93 per gallon.

Non-fuel costs are also elevated. Non-fuel cost per available seat mile increased 6.8% year over year in the June quarter, and Delta continues to absorb wage, crew-related and recovery costs. Airlines can show strong demand and still see margins compress quickly when fuel and labor move against them.

Delta Has Upside but Less Margin for ErrorThe $93 price target compares with a $87.39 stock price, implying remaining upside but not a wide margin of safety. That matters after the rally.

Delta’s premium, loyalty and corporate revenue streams still support the investment case. But the reward-to-risk spread has narrowed, especially for investors uncomfortable with fuel volatility, consumer sensitivity and geopolitical uncertainty.

DAL Scores Favor Value and MomentumThe bottom line is that DAL still looks attractive in several respects, but it is not an uncomplicated buy. The stock currently carries a Zacks Rank #3 (Hold), which points to a balanced near-term setup rather than a decisive bullish call. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Style Scores are more constructive. DAL has a Value Score of A, Momentum Score of A and VGM Score of A, suggesting favorable valuation and trading characteristics. Its Growth Score of C tempers the case, reinforcing that the stock has upside potential but less room for disappointment after its rally. 

Key Takeaways Delta maintained 2026 EPS of $6.50-$7.50 and free cash flow of $3-$4B despite record fuel costs.DAL's premium revenues rose 17%, loyalty 19%, cargo 39% and MRO 32% as broad demand stayed intact.Delta expects 2-3% fourth-quarter capacity growth, led by larger aircraft and international expansion. Delta Air Lines, Inc. (DAL - Free Report) used its second-quarter 2026 earnings call to deliver a clear message. Pricing discipline, diversified revenues and measured capacity are helping offset a sharp fuel headwind. Management framed the quarter less as a beat and more as proof that the model is holding up.

That mattered because Delta reaffirmed its full-year earnings and free cash flow outlook even after absorbing what executives described as the highest quarterly fuel cost in company history. The call also gave investors a firmer read on industry pricing, corporate demand and 2027 setup.

DAL Leans on Revenue DurabilityChief executive officer Ed Bastian said Delta’s diversified model is gaining strength as customers keep prioritizing travel and premium experiences. He tied that resilience to loyalty, corporate share, international exposure, cargo and maintenance revenues rather than to fare increases alone.

The company reported adjusted earnings of $1.56 per share, which surpassed the Zacks Consensus Estimate of $1.51. Revenues rose 13.9% year over year to $17.67 billion, which missed the Zacks Consensus Estimate of $17.76 billion by 0.53%.

Management emphasized that this performance came on roughly 1% capacity growth, reinforcing the idea that yield and mix, not aggressive expansion, are driving the current earnings profile.

Delta Keeps Full-Year Targets IntactThe clearest signal from the call was unchanged full-year guidance. Delta reaffirmed 2026 adjusted EPS of $6.50 to $7.50, free cash flow of $3 billion to $4 billion.

For the September quarter, management guided to mid-teens revenue growth, an operating margin of 11% to 13% and EPS of $2 to $2.50. Chief financial officer Erik Snell said that the outlook assumes an all-in fuel price of about $3.15 per gallon, including a refinery benefit of $0.05 per gallon.

Snell also said nonfuel unit cost performance should improve modestly in the third quarter and progress further in the December quarter, which he positioned as a step back toward Delta’s long-term low-single-digit CASM-ex framework.

DAL Sees Structural Change in PricingBastian was especially direct in Q&A on the industry backdrop. In response to a Deutsche Bank question, he argued that higher fuel, labor, airport and aircraft costs have forced structural changes across U.S. airlines, reducing the old low-cost carrier playbook’s ability to pressure fares.

He said Delta believes current revenue momentum can persist even if fuel moderates because fares still lag cumulative inflation since COVID, and much of the industry remains below its cost of capital. That was one of the clearest indications on the call that management sees the pricing environment as more durable than cyclical.

Joe Esposito, executive vice president and chief commercial officer, reinforced that point by saying Delta exited the quarter with a materially stronger TRASM run rate than it entered, as newer, higher-priced bookings replaced earlier sales made before the fuel recapture push took hold.

Delta Finds Strength Beyond Main CabinEsposito said broad demand strength remained intact across customer groups, with premium revenues up 17%, loyalty and related revenues up 19%, cargo up 39% and MRO revenues up 32% in the quarter. American Express remuneration rose 16% to $2.4 billion.

In prepared remarks and Q&A, management highlighted an improving balance between premium and main cabin trends. Esposito told Goldman Sachs that the main cabin unit revenues outperformed premium in the quarter as industry discount capacity came out, while premium demand still produced high-single-digit unit revenue growth.

Corporate sales also drew attention. Esposito said every sector posted double-digit growth, and he told Goldman Sachs that most of the roughly 20% increase reflected fare strength rather than a major volume rebound, leaving room for upside if volumes improve further.

DAL Uses Balance Sheet and Fleet as OffenseDelta ended the quarter with adjusted net debt of $13.6 billion and liquidity of $7.7 billion, while first-half operating cash flow reached $4.1 billion and free cash flow totaled $1.4 billion. Debt reduction remained a stated priority even as the company raised its dividend by 15%.

Management also tied future margin expansion to fleet upgauging, operational resilience and international growth. Bastian said Delta expects to return to a more normal 2% to 3% capacity growth rate in the fourth quarter, with growth centered on larger-gauge aircraft and selective international opportunities.

On execution, chief operating officer Dan Janki pointed to better baggage handling, stronger fleet reliability and further runway in TechOps. He said MRO revenues are still on track for roughly $1.2 billion this year, up nearly 50% from last year, with low-double-digit margins.

Delta’s Tone Stays Firm on the Back HalfThe call’s tone was confident but disciplined. Management did not present the quarter as a peak condition. Instead, executives repeatedly pointed to modest capacity, better unit revenue trends, cost normalization and stronger cash generation as the foundation for second-half earnings growth.

That framing left investors with a company focused on preserving pricing, expanding high-margin revenue streams and keeping leverage moving lower while still investing in product, technology and operations.

Zacks Signals for DALDAL carries a Zacks Rank #3 (Hold), along with a Value Score of A, Growth Score of C, Momentum Score of A and VGM Score of A. Within the Zacks framework, stronger Style Scores indicate more favorable value, growth or momentum characteristics, while the VGM score reflects a blended view across all three. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Zacks Rank #3 does not carry the same upside signal as a Zacks Rank #1 (Strong Buy) or 2 (Buy), even with strong Style Scores. The current mix points to attractive value and momentum traits, but the Zacks Rank can change as earnings estimate revisions adjust after the quarter.

American Airlines introduced a branded airplane for the 2026 FIFA World Cup.

American Airlines

The three global U.S. airlines all cite traffic gains from the 2026 soccer World Cup, played largely in the United States, and Delta Air Lines CEO Ed Bastian said Friday that the carriers may well continue to benefit.

As Delta on Friday led off the industry’s second quarter earnings reports, executives responded to questions from reporters and analysts about the World Cup’s impact. United will report July 16th, while American will report on July 23rd. American said Friday that it has added more flights than any competitor to the 16 U.S. host cities for the games, with an extra 27,000 seats on 12 routes to support fan travel.

During the Delta call, Joe Esposito, chief commercial officer, said, “We’re the beneficiary of World Cup,” noting, “That's not significant enough to make a huge difference to the quarter, but we see it flight by flight.” With more games coming up, “You’ll see closer in demand as people are trying to get to that specific city for the game,” he said.

Then Bastian added that the games may have had an intangible benefit. “I think the US has done a wonderful job of showing what a great country we are in welcoming visitation and getting the international inbound back again, both visually, because as everyone has watched, you couldn't have asked, I think, for a better advertisement to come to the USA,” Bastian said.

“I do think it'll have an impact on the mix in terms of having greater inbound participation in the next year,” he said. “And while it may not change our specific market choices, I do think it'll enhance the mix.”

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Not just enthusiastic crowds, but also, in some cases, the receptions contributed generally to a positive impression by the United States. In particular, the Algerian national soccer team was warmly welcomed to Lawrence Kan., outside Kansas City. “Approximately 2,000 soccer fans, some waving Algerian National flags, others singing songs, banging on drums and expressing themselves via their favorite spectator chants, applauded wildly as the Algeria National Team bus followed several police motorcycles into the parking lot of the DoubleTree Hotel by Hilton,” The Kansas City Star reported on June 8th.

In recent years, amidst talk of tariffs and other conflicts with Europe and Canada, traffic from the regions to the U.S. has declined, although the impact has been diminished by increased U.S. travel to Europe. In fact, earlier on the Delta call, Esposito said that on transatlantic routes, “As we’ve been talking about in past, our foreign point of sale has been a little bit softer, but we’ve transitioned to more of a US point of sale, where we're over 80% now for US point of sale in the transatlantic."

Delta in the past has been early to spot travel trends, including the post-pandemic increase in “revenge travel” as baby boomers made up for lost transatlantic trips by spending more money on better seats and flying in once slower travel seasons in the spring and fall.

In the coming weeks, United and American can be expected to extoll their own passenger increases due to World Cup travel.

American has been the most-committed to the games, positioned as the “Official North American Airline Supplier of FIFA World Cup 26,” in partnership with Qatar Airways. Qatar, a Oneworld member and codeshare partner, has had prominently displayed sideline advertising during games.

In an e-mail, An American spokeswoman noted that “Since the start of the tournament, American has operated 158 flights that were added or operated with larger aircraft specifically for the tournament, carrying thousands of passengers between host cities.”

Along with more flights between Los Angeles and Seattle or Boston and Dallas-Fort Worth, American introduced nonstop service between Atlanta and Kansas City during the quarterfinal round. The carrier said it has more than 2,400 peak day departures scheduled in June and July to the 16 host cities.

Schedule nerds may be interested that American offered 28 and 27 flights ​to Kansas ​City on July ​9 and 10, with 373 and 372 flights ​to ​its Miami hub on the same two days. During the semifinals, American has scheduled 931 and 934 flights ​to ​its Dallas/Fort ​Worth hub on July ​12 and 13, not to mention 47 and 43 flights ​to Delta’s Atlanta hub on July 13 and 14. It will also have 268 and 214 flights ​to the ​New York area, site of the final match, ​on July ​17 and 18

Also, throughout the tournament, American successfully ​completed ​16 surprise ​gate events for customers traveling on select flights between games with decorations, special announcements and giveaways as passengers boarded. The giveaways, extended to more than 2,600 passengers, took place on departing flights from every host city ​across North America, including Guadalajara, Vancouver, Monterrey, Mexico City, and ​Toronto as well as the U.S. cities.

American is operating a special livery aircraft that at times has flown specifically on flights to games. It has also made FOX One TV, which broadcasts games, available on its inflight streaming service.

Meanwhile, United said it saw a nearly 20% increase in bookings in aggregate to the North American cities hosting large international soccer matches from Thursday, June 11 to Sunday, June 27. United hubs in Houston and Chicago both provide direct flights to all host cities. “Fans from around the world are gearing up for an exciting summer to come together and cheer on their national team,” United said in a press statement.

Delta Air Lines has seen its latest digital tools boost customer satisfaction while helping travelers get where they want to go.

Clint Henderson (@ThePointsGuyArrivals/@ThePointsGuyDepartures) says Delta Air Lines (DAL) says the company's premium demand has "more than made up" for a reduction of passengers in the back cabins as air fare prices grow. He outlines the airline's earnings and points to rising costs as a tentative long-term headwind.

Delta Air Lines, Inc. (DAL) Q2 2026 Earnings Call Transcript

Delta Air Lines sees higher fares staying in place for consumers amid higher costs for fuel and other expenses, even if oil prices return to more moderate levels and allow jet fuel costs to decline in turn.

Delta CEO Ed Bastian said on the company's quarterly earnings call that the dynamics of the airline industry have changed significantly as higher fuel prices, as well as increases in other categories of operational expenses, have made it more difficult for low-cost carriers to compete through lower airfares.

"Most U.S. carriers were already struggling to earn their cost of capital against a backdrop where industry airfares have meaningfully trailed inflation, costs have reset higher, and consumer preferences have evolved," Bastian said.

"As we predicted, structural change has accelerated, enabling the industry to recapture this year's fuel cost inflation at the fastest pace of any recent cycle," he added.

DELTA ROLLS OUT CHEAPER FIRST-CLASS, BUSINESS FARES WITH FEWER PERKS: 'MORE WAYS TO CHOOSE'

Delta Air Lines CEO Ed Bastian said that he thinks higher airfares will remain for consumers as the industry adjusts to cost pressures. (Nicolas Economou/NurPhoto via Getty Images)

Bastian said that Delta sees those shifts in the industry continuing to play out, which will allow airfares and the revenue outlook to remain steady even if energy prices return to their pre-Iran war levels.

"Even after recent fare increases, airfares remain 10 to 15 points below overall inflation since COVID," Bastian said, adding that much of the industry is still earning returns below the cost of capital. 

"We believe that current revenue momentum should remain sustainable even if fuel prices moderate," Bastian said.

DELTA CEO ED BASTIAN REVEALS WHAT HE SAYS MUST HAPPEN FOR AIRLINE TICKET PRICES TO FALL

Ticker Security Last Change Change % DAL DELTA AIR LINES INC. 87.09 -1.89 -2.12% Airlines are facing not only higher fuel costs, but increased expenses for labor, airport infrastructure, technology and airplanes, which Bastian explained is forcing companies in the industry to build more resilience into their operational strategy.

"What that tells you is that you need to figure out a change to the business model that will enable you to build resilience in your price and durability, and that's what we've done over time," he said, noting that includes higher airfares as well as the diversification of revenue streams, such as through Delta's partnership with American Express.

DELTA, SOUTHWEST HIKE CHECKED BAG FEES AS AIRLINES FACE SURGING FUEL COSTS

Delta believes that airfares are unlikely to decline even after energy prices normalize. (Justin Sullivan/Getty Images)

Bastian added that "even with the improvements we've seen in pricing for the industry, the low end of the market still has to increase fares by another 5%, by our estimate, just to get to breakeven at today's fuel environment."

"There's nothing to be gained by trying to grow in that environment. What the opportunity has to be in finding ways to secure higher revenues, not higher market share," he added.

The most recent consumer price index (CPI) inflation data released by the Bureau of Labor Statistics showed that airline fares rose 2.7% on a monthly basis in May, and were 26.7% higher than a year ago.

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The BLS is set to release updated CPI inflation data for the month of June next week.

Delta CEO Ed Bastian warned Friday that travelers could see higher airfare costs continue even as oil prices fall from multi-year highs – which he expects will help boost the carrier’s profits to hit its annual goal.

“I think it’s sustainable,” Bastian told CNBC when he was asked about high ticket prices, nodding to robust travel demand, more seating options and an industry that has been burnt in the past – and is hesitant to expand capacity as soon as oil starts to drop.

Domestic and international airfare have dipped in recent weeks from highs in April and May – but consumers are still coughing up much more for a ticket than they did last year as the Iran war has pushed jet fuel to a premium, multiplying operating costs for major airlines.

Delta CEO Ed Bastian on Friday warned travelers could see higher airfare last. Getty Images Last week, the average domestic airfare hit $366, 38% higher than the same time last year, while the average international ticket cost $919 – finally falling below the $1,000 level but still 24% higher than 2025 prices, according to the latest Kayak data.

Expectations that airfare will stay elevated helped the Atlanta, Ga.-based airline reaffirm its full-year earnings per share forecast of $6.50 to $7.50. 

In the third quarter, the airline expects earnings per share of $2 to $2.50, compared to analysts’ expectations of $2.02.

Delta also shared its second-quarter results, with adjusted earnings per share of $1.56, beating expectations of $1.48, and revenue of $17.67 billion, topping a forecast of $17.53 billion.

Bastian said Delta – the most profitable US airline – has benefited from catering to higher-income customers in a K-shaped economy, which has seen wealthier Americans continue to spend big while lower-income individuals cut back.

The carrier’s premium seat sales raked in $6.92 billion in revenue in the second-quarter, while the main cabin brought in $6.85 billion – and it’s hoping to capitalize on demand for premium offerings with more seating options.

Delta this week launched “basic fares” for first class and business seats, which is an economy seat that includes a few perks that are typically reserved for Delta members.

Domestic and international airfare have dipped in recent weeks from highs in April and May. Luiz C. Ribeiro for NY Post A higher-than-expected boost in demand from the World Cup and a jump in corporate travel also helped drive the airline’s strong profits, Bastian said. 

Jet fuel typically accounts for the bulk of airline operating costs – and global carriers have seen prices soar as the war in Iran effectively blockaded the Strait of Hormuz, creating the worst-ever energy supply disruption.

Airlines have responded by slashing routes, especially long-haul flights that require more fuel; hiking airfare; and raising fees for checked bags, seat selection and other add-ons.

But industry execs still say they haven’t passed the full cost of higher fuel costs along to consumers. 

Delta has benefited from catering to higher-income customers in the K-shaped economy. William A. Morgan – stock.adobe.com Bastian said Delta has passed about 60% of the added costs along to consumers – but that number should hit 100% this quarter.

In the second quarter, Delta saw its revenue per available seat mile – which measures how an airline is bringing in for each seat a passenger takes up – climb 17% from the previous year. But its costs per available seat mile rose 21%.

Net income plummeted 25% from the previous year to $1.66 billion, or $2.44 a share, while operating revenue jumped 19% to $19.76 billion.

The airline has other revenue streams aside from airfare, including cargo, a fuel refinery and a maintenance and repair provider.

Delta Air Lines DAL shares opened down on Friday despite posting better-than-expected second-quarter (Q2) earnings.

The flagship air carrier reported $1.56 a share of earnings on $17.67 billion in revenue for its fiscal Q2, handily beating $1.48 a share and $17.53 billion that experts had forecast.

DAL’s price action this morning, therefore, resembles a classic “sell-the-news” event – especially since the airline stock is up nearly 25% year-to-date and is trading at record levels currently.

Still, Bernstein analyst David Vernon continues to see further upside in Delta Air Lines stock, and recommends ignoring the early trading dip as “noise” against exceptionally strong fundamentals.

Vernon recommends sticking with DAL stock mostly because management issues strong guidance despite a highly volatile macro environment featuring regional conflicts and oil price volatility.

The airline expects its unit revenue to accelerate in Q3, and its earnings to beat consensus estimates by as much as 39% in the fourth quarter.

This signals Delta Air Lines’ commitment to margin preservation, and reassures investors that the company is positioned to protect its bottom line even through geopolitical disruptions.

Bernstein currently has an “Outperform” rating on Delta Air Lines, coupled with a $93 price target that signals potential for continued upside in the back half of this year.

Vernon remains bullish on Delta Air Lines shares also because recent fare increases are closing the gap between ticket costs and Consumer Price Index (CPI).

In a post-earnings interview with CNBC today, he also emphasized that focusing solely on standard inflation metrics misses a larger, structural transformation.

DAL’s advanced “premium-cabin” segmentation strategy allows it to capture higher average fares from consumers willing to pay for superior amenities and convenience – a lucrative revenue stream that effectively subsidizes lower-tier tickets.

By maintaining this multi-tiered pricing architecture, Delta Air Lines Inc easily prices out low-cost competitors that operate on thin margins, driving overall industry unit revenues structurally higher while insulated from localized economic softening.

All in all, David Vernon believes DAL shares’ long-term investment thesis remains firmly intact.

While the airline did benefit from 2026 FIFA World Cup demand in its recently concluded quarter, management believes higher fares are sustainable, which serves as a definitive sign of underlying demand.

Investors should also note that Delta Air Lines pays a dividend yield of nearly 1% currently, which makes it even more attractive as a long-term holding.

Crucially, Bernstein is actually among the more conservative Wall Street firms on Delta Air Lines.

The consensus rating on DAL sits at “Buy” currently, with the mean price target of $102 signaling potential for significant further upside over the next 12 months.

Delta Air Lines (DAL, Financials), one of the largest U.S. carriers and a major operator of domestic and international passenger flights, said higher ticket pri

Flying first class just got a little less expensive, provided you’re willing to make a few compromises.

Delta announced Thursday that it’s expanding its unbundled fare strategy into its premium cabins with new lower-priced fare options for Delta One, domestic first class, and Delta Premium Select that let travelers pay less in exchange for giving up some flexibility and premium benefits.

What travelers still getDelta, like many other airlines, rolled out Basic, Classic, and Extra fare options in the Main Cabin across much of its network last year.

The lower-priced premium fares do not change the onboard seat or inflight service. Passengers who book Basic Business in Delta One, for instance, will still receive the same lie-flat seat, meals, beverages, bedding, and onboard service as other Delta One passengers. The same applies to Delta First Basic and Delta Premium Select Basic. The cabin experience remains the same regardless of fare purchased.

Subscribe to the Daily newsletter.Fast Company's trending stories delivered to you every day

What travelers give upWhen it comes to concessions, what you’re giving up with the lower fare happens primarily before and after the flight.

Depending on the fare and route, travelers may receive:

No complimentary advance seat selection Reduced or no lounge access that would otherwise be included with eligible Delta One fares No dedicated premium check-in Lower baggage allowances More restrictive change and cancellation policies Fewer SkyMiles and Medallion Qualification Dollars Lower boarding priority No complimentary upgrades Still, a lighter bag in exchange for a lie-flat seat on a long-haul flight might be worth it for many customers.

Explore Topicsair travelDeltafirst class

Delta Air Lines (DAL - Free Report) came out with quarterly earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.51 per share. This compares to earnings of $2.1 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +3.31%. A quarter ago, it was expected that this airline would post earnings of $0.61 per share when it actually produced earnings of $0.64, delivering a surprise of +4.92%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Delta, which belongs to the Zacks Transportation - Airline industry, posted revenues of $17.67 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.53%. This compares to year-ago revenues of $16.65 billion. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Delta shares have added about 28.2% since the beginning of the year versus the S&P 500's gain of 10.2%.

What's Next for Delta?While Delta has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Delta was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.93 on $17.47 billion in revenues for the coming quarter and $5.78 on $66.23 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Airline is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Allegiant Travel (ALGT - Free Report) , is yet to report results for the quarter ended June 2026.

This travel services company is expected to post quarterly earnings of $1.27 per share in its upcoming report, which represents a year-over-year change of +3.3%. The consensus EPS estimate for the quarter has been revised 88% higher over the last 30 days to the current level.

Allegiant Travel's revenues are expected to be $1 billion, up 45.1% from the year-ago quarter.

Delta Air Lines Inc (NYSE:DAL) reported second quarter adjusted earnings and revenue that exceeded Wall Street expectations, while reaffirming its full-year 2026 earnings guidance and forecasting continued momentum into the September quarter.

The airline posted adjusted earnings per share of $1.56 for the June quarter, ahead of the consensus estimate of $1.51.

Adjusted revenue totaled $17.7 billion, exceeding analyst expectations of $17.5 billion.

Delta said record revenue during the quarter was driven by strong demand for premium cabins, corporate travel and international routes, despite what it described as the highest quarterly fuel expense in the company's history.

The company reaffirmed its full-year 2026 adjusted earnings guidance of $6.50 to $7.50 per share, above the broader analyst consensus of $5.97. It also maintained its free cash flow forecast of $3 billion to $4 billion.

For the September quarter, Delta expects total revenue to increase by the mid-teens year over year, operating margins of 11% to 13%, and earnings per share of $2.00 to $2.50.

Delta CEO Ed Bastian said the company's June quarter performance reflected "broad demand strength, growing brand preference and momentum across our diversified revenue base."

"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,” Bastian added, while reaffirming its expectation of 20% earnings growth for the full year despite higher fuel costs.

The airline’s shares were little changed at $89 following the release of its earnings report.

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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

Delta Air Lines reaffirmed its full-year profit forecast and gave a stronger-than-expected third-quarter outlook on Friday, signaling confidence that recent fare ​gains can hold even as fuel prices ease from this year's highs.

Delta Air Lines said customers aren't shrinking away from higher flight prices that have helped offset sky-high fuel costs.