Delta Air Lines, the first of the major U.S. carriers to report its second-quarter results for 2026, affirmed its full-year earnings forecast as it projects the current year’s higher fuel costs will be largely passed through to customers. CEO Ed Bastian told CNBC that fares are expected to remain firm even as fuel prices have recently eased from multiyear highs. He described the pricing dynamic as sustainable, attributing it to solid demand, a wider range of seat options, and a disciplined industry approach that is unlikely to expand capacity quickly while oil prices fall.
For the third quarter, Delta forecast earnings per share in a range of $2.00 to $2.50, versus analysts’ consensus around $2.02. The company also sees revenue for the July-through-September period rising to a mid-teens percentage increase year over year. In full-year guidance, Delta reaffirmed its January targets of $6.50 to $7.50 per share. Delta reported second-quarter results that beat some expectations on an adjusted basis but showed a still-strong revenue line and a reduction in net income from a year earlier due to higher costs and other factors. Adjusted earnings per share came in at $1.56, above the $1.48 expected by analysts in consensus estimates, while revenue reached about $17.67 billion, compared with a $17.53 billion consensus.
Demand across segments remained robust, with premium-seat sales contributing significantly to revenue. Premium cabin revenues totaled $6.92 billion for the quarter, while main cabin revenue was $6.85 billion. World Cup-related travel helped bolster inbound visitor demand to the United States, according to Bastian. Corporate travel also rose in the second quarter, led by aerospace and defense, banking, and automotive sectors. The carrier noted that fuel costs have remained elevated but that it is actively passing through a portion of these costs to customers; executives indicated that about 60% of higher fuel bills were being priced into fares, with expectations of nearly complete pass-through in the coming quarter. Delta also highlighted that its refinery in Trainer, Pennsylvania, contributed to revenue growth with an 83% surge to $2.09 billion, helping offset some costs elsewhere in the business.
Overall, Delta reported a net income of $1.6 billion for the quarter, down 25% from a year earlier, as operating revenue rose about 19% to $19.76 billion. Excluding one-time items, earnings rose to $1.56 per share. The airline continues to face the industry’s cost pressures while signaling that the current pricing environment supports its 2026 earnings trajectory as fuel costs remain a pivotal factor in its revenue and pricing strategy.
