Delta Air Lines reported June-quarter 2026 results on July 10, 2026, saying demand remained broad-based and that performance held up even as fuel costs surged. CEO Ed Bastian said Delta delivered $1.4 billion in pre-tax profit while absorbing “the highest quarterly fuel expense” in the company’s history, and the carrier reaffirmed its full-year earnings and free-cash-flow targets.
June quarter 2026 (GAAP and adjusted)
On a GAAP basis, Delta reported $19.8 billion in operating revenue, $1.9 billion in operating income (a 9.4% operating margin), $2.0 billion in pre-tax income (a 10.2% pre-tax margin) and $2.44 in earnings per share. Operating cash flow was $1.6 billion.
On an adjusted (non-GAAP) basis, Delta reported $17.7 billion in operating revenue, $1.6 billion in operating income (an 8.8% operating margin), $1.4 billion in pre-tax income (a 7.7% pre-tax margin) and $1.56 in earnings per share. Operating cash flow was $1.7 billion.
Fuel was the standout cost pressure. Delta reported an adjusted fuel expense of $4.4 billion, up 77% year over year, with an adjusted fuel price of $3.93 per gallon. Delta said the fuel figure includes an 11-cent-per-gallon refinery benefit, including a 5-cent distinct impact tied to a temporary refinery outage.
Outlook for the September quarter
Delta told investors it expects continued momentum in the September quarter (3Q 2026), forecasting mid-teens year-over-year revenue growth, an operating margin of 11% to 13%, and earnings per share of $2.00 to $2.50.
For fuel, Delta said its September-quarter guidance assumes prices based on the forward curve as of July 2, 2026, including a refinery benefit of 5 cents per gallon, resulting in a projected all-in fuel price of about $3.15 per gallon for the quarter.
For the full year, Delta reaffirmed guidance for adjusted EPS of $6.50 to $7.50 and free cash flow of $3 billion to $4 billion, while also pointing to continued debt paydown and a focus on an investment-grade balance sheet.
Delta reported adjusted net debt of $13.6 billion at quarter-end (down $709 million from the end of 2025) and liquidity of $7.7 billion, including $3.1 billion of undrawn revolving capacity. It also announced a 15% increase in its dividend beginning in the September quarter.
Do you think Delta will meet its expected growth in the September quarter?
