Delta Absorbs Most Expensive Fuel Quarter Ever During Record Summer Travel Demand
Delta Air Lines Inc. (NYSE: DAL ) reported second-quarter 2026 results on Friday that topped Wall Street estimates for adjusted earnings and revenue. However, the stock traded lower after the release. Adjusted earnings came in at $1.56 per share, topping the $1.47 estimate, while GAAP diluted earnings fell 25% year over year to $2.44 per share. Record Revenue, Lower Margins Operating revenue rose 19% to $19.76 billion, topping the $17.53 billion estimate. Adjusted operating revenue increased 13.9% to a record $17.67 billion on about 1% capacity growth. Adjusted operating income declined 24% to $1.56 billion, while the adjusted operating margin narrowed to 8.8% from 13.3%. Adjusted net income fell 26% to $1.03 billion. Passenger revenue increased 13% to $15.61 billion. Premium-product revenue rose 17% to $6.92 billion, while main-cabin revenue grew 8% to $6.85 billion. Domestic revenue...
Delta Air Lines Inc. (NYSE: DAL ) reported second-quarter 2026 results on Friday that topped Wall Street estimates for adjusted earnings and revenue. However, the stock traded lower after the release. 44 per share.
53 billion estimate. 67 billion on about 1% capacity growth. 3%. 03 billion.
61 billion. 85 billion. Domestic revenue climbed 15%, Atlantic revenue rose 8%, Latin America revenue increased 4%, and Pacific revenue advanced 15%. 4%, while passenger yield increased 12%.
Diversified Revenue Supports Growth Diversified revenue streams accounted for 61% of adjusted revenue, up from 59% a year earlier. Cargo revenue rose 39%, MRO revenue increased 32%, and loyalty and related revenue grew 19%. 4 billion. Corporate sales rose by double digits across all sectors, while premium corporate sales increased more than 25%.
10 billion. 8%. 93 per gallon. Delta said it absorbed the highest quarterly fuel expense in its history.
65 billion in adjusted operating cash flow and $209 million in free cash flow during the quarter. 44 billion. 7 billion in liquidity. 59 billion.
The company expects gross leverage of about two times by year-end and announced a 15% dividend increase beginning in the September quarter. Delta Affirms Full-Year Outlook Delta CEO Ed Bastian said the airline is entering the second half of the year from a position of strength and expects the momentum to continue, with double-digit operating margins and a return to earnings growth. He added that the company reaffirmed its full-year outlook for 20% earnings growth despite facing a multibillion-dollar fuel cost headwind, underscoring the resilience of its business and setting the stage for continued momentum into 2027. 99 estimate.
It forecasts mid-teens revenue growth and an operating margin of 11% to 13%. 93 estimate, and maintained free cash flow guidance of $3 billion to $4 billion. Management expects full-year earnings to grow 20% despite a multi-billion-dollar fuel headwind, with double-digit margins and a return to earnings growth in the second half. 65 during premarket trading on Friday, according to Pro data.
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