Delta Air Lines is flying high heading into the second half of 2026 after topping Q2 earnings guidance.
The Atlanta-based carrier reported financial results for the June quarter on Friday, revealing operating revenue of $19.8 billion and earnings per share of $2.44.
The airline is seeing positive numbers despite soaring jet fuel prices amid the global oil shortage, largely due to steady demand for air travel.
Delta's chief commercial officer Joe Esposito said, "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."
"With continued momentum across customer segments and diverse revenue streams, we are confident in the sustainability of yield and revenue strength," he added. "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."
Erik Snell, Delta's chief financial officer, noted that the airline "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 Snell.
Looking ahead, Delta is anticipating continued momentum in Q3 with mid-teens revenue growth and double-digit margin, with adjusted EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion.
"Today, we reported our June quarter results, and it is clear that Delta's brand and industry position are stronger than ever," Delta CEO Ed Bastian said in a statement. "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."
"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," added Bastian. "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."
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
