Delta Air Lines (DAL) · Transportation
Delta Air Lines Q2 2026 earnings: summary, key numbers & outlook
Results filed 10 Jul 2026 · Quarter ended 30 Jun 2026
Official transcript (PDF) ↗Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Delta reported June quarter 2026 GAAP operating revenue of $19.8 billion, operating income of $1.9 billion with an operating margin of 9.4 percent, and earnings per share of $2.44, with non-GAAP earnings per share of $1.56.
Delta's June quarter revenue was $19.8 billion on a GAAP basis, or $17.7 billion excluding third-party refinery sales, up 14 percent on about 1 percent more capacity. Premium, loyalty, cargo and maintenance (MRO) revenue all grew strongly. Fuel was the big drag: adjusted fuel expense rose 77 percent to $4.4 billion, so adjusted operating margin fell to 8.8 percent from 13.3 percent and adjusted EPS fell to $1.56 from $2.12.
Management expects September quarter revenue to grow mid-teens, with an operating margin of 11 to 13 percent and EPS of $2.00 to $2.50. It affirmed full-year EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion, and raised the dividend 15 percent. The main risk is fuel: the outlook assumes about $3.15 per gallon, and unit costs excluding fuel rose 6.8 percent.
Key numbers
- Operating revenue (GAAP) · GAAP
- $19.8B
- Operating revenue (adjusted) · non-GAAP
- $17.7 billion
- Net income (GAAP) · GAAP
- $1.6B
- Diluted EPS (GAAP) · GAAP
- $2.44
- Adjusted diluted EPS · non-GAAP
- $1.56
- Operating income (GAAP) · GAAP
- $1.9B
- Operating income (adjusted) · non-GAAP
- $1.6B
- Operating margin (GAAP) · GAAP
- 9.4%
up 19% from a year ago
up 14 percent from a year ago
down 25% from a year ago
down 25% from a year ago
down 26% from a year ago
down 11% from a year ago
down 24% from a year ago
down from 12.6% a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Premium products ticket revenue | $6.9B | up 17% |
| Main cabin ticket revenue | $6.9B | up 8% |
| Loyalty and related revenue | $1.3B | up 19% |
| MRO revenue | $315.0M | up 32% |
| Cargo revenue | $294.0M | up 39% |
| Refinery revenue | $2.1B | up 83% |
| Adjusted TRASM | 22.45 | up 12.4% |
| Non-fuel unit cost (CASM-Ex) | 14.09¢ | up 6.8 percent year-over-year |
Where each number comes from
- Operating revenue (GAAP): “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 revenue (adjusted): “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.”
- Net income (GAAP): “Net income | 1,604 | 2,130 | (526) | (25)% | Diluted earnings per share | 2.44 | 3.27 | (0.83) | (25)%”
- Diluted EPS (GAAP): “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”
- Adjusted diluted EPS: “Delta delivered June quarter results above guidance, with an operating margin of 8.8 percent and earnings of $1.56 per share.”
- Operating income (GAAP): “Operating income | 1,864 | 2,102 | (238) | (11)% | Operating margin | 9.4% | 12.6% | (3.2)pts | (25)%”
- Operating income (adjusted): “Operating income | 1,563 | 2,064 | (501) | (24)% | Operating margin | 8.8% | 13.3% | (4.5)pts | (34)%”
- Operating margin (GAAP): “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”
- Premium products ticket revenue: “Ticket - Premium products | 6,920 | 5,899 | 1,021 | 17% | 12,282 | 10,605 | 1,677 | 16%”
- Main cabin ticket revenue: “Ticket - Main cabin | $6,851 | $6,347 | $504 | 8% | $12,256 | $11,709 | $547 | 5%”
- Loyalty and related revenue: “Loyalty and related | 1,344 | 1,127 | 217 | 19% | 2,565 | 2,209 | 356 | 16%”
- MRO revenue: “MRO | 315 | 239 | 76 | 32% | 695 | 390 | 305 | 78% | Miscellaneous | 106 | 62 | 44 | 71%”
- Cargo revenue: “Cargo | 294 | 212 | 82 | 39% | 521 | 421 | 100 | 24% | Other | 3,856 | 2,569”
- Refinery revenue: “Refinery | $2,091 | $1,141 | $950 | 83% | $3,745 | $2,203 | $1,542 | 70%”
- Adjusted TRASM: “TRASM (cents) | 22.45 | 19.97 | 2.48 | 12.4% Operating expense | 16,102 | 13,443 | 2,659 | 20%”
- Non-fuel unit cost (CASM-Ex): “Non-fuel CASM was 14.09¢, an increase of 6.8 percent year-over-year”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $19.8B | +18.7% | +24.6% |
| Operating income | $1.9B | −11.3% | +272.1% |
| Net income | $1.6B | −24.7% | — |
| Diluted EPS | $2.44 | −25.4% | — |
| Operating margin | 9.4% | −3.2 pts | +6.2 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Adjusted EPS | FY 2026 | $6.50 - $7.50 |
| Free cash flow | FY 2026 | $3 - $4 |
| Gross leverage (adjusted debt to EBITDAR) | FY 2026 | Approx. 2x |
| Operating margin | September quarter 2026 | 11% - 13% |
| Earnings per share | September quarter 2026 | $2.00 - $2.50 |
| All-in fuel price per gallon | September quarter 2026 | approximately $3.15 per gallon |
Key takeaways
Fuel costs squeezed margins despite record revenue
Adjusted fuel expense of $4.4 billion was up 77 percent year-over-year at an adjusted price of $3.93 per gallon. Adjusted operating margin fell to 8.8% from 13.3%.
Premium and diversified revenue drove 14% growth
Diverse revenue streams were 61 percent of total revenue, up 2 points, and premium revenue grew 17 percent. Loyalty and related revenue grew 19 percent.
Free cash flow was weak in the quarter
Free cash flow was $209 million versus $733 million a year earlier. The first half delivered $1.4 billion of free cash flow against the full-year target of $3 to $4 billion.
September quarter outlook points to margin recovery
Delta guided to an operating margin of 11 to 13 percent and EPS of $2.00 to $2.50, with fuel assumed at about $3.15 per gallon.
Balance sheet strengthened and dividend raised
Adjusted net debt fell to $13.6 billion, a reduction of $709 million from the end of 2025. Delta announced a 15 percent dividend increase beginning in the September quarter.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $15.6B * |
| Q1 2025 | $14.0B |
| Q2 2025 | $16.6B |
| Q3 2025 | $16.7B |
| Q4 2025 | $16.0B * |
| Q1 2026 | $15.9B |
| Q2 2026 | $19.8B |
| Q3 2026 | $20.2B |
Data
| Q1 2025 | $0.37 |
| Q2 2025 | $3.27 |
| Q3 2025 | $2.17 |
| Q1 2026 | -$0.44 |
| Q2 2026 | $2.44 |
| Q3 2026 | $1.15 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 11.0% |
| Q1 2025 | 4.1% |
| Q2 2025 | 12.6% |
| Q3 2025 | 10.1% |
| Q4 2025 | 9.2% |
| Q1 2026 | 3.2% |
| Q2 2026 | 9.4% |
| Q3 2026 | 7.2% |
Data
| Q4 2024 | $584.0M |
| Q1 2025 | $1.2B |
| Q2 2025 | $648.0M |
| Q3 2025 | $687.0M |
| Q4 2025 | $1.4B |
| Q1 2026 | $1.2B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Delta's June quarter 2026 results?
GAAP operating revenue was $19.8 billion, operating income was $1.9 billion (9.4 percent margin) and diluted EPS was $2.44. On a non-GAAP basis, revenue was $17.7 billion, operating margin was 8.8 percent and EPS was $1.56.
Why did Delta's earnings fall from a year ago?
Adjusted fuel expense rose 77 percent to $4.4 billion, the highest quarterly fuel expense in company history, and non-fuel unit costs rose 6.8 percent. Adjusted EPS fell to $1.56 from $2.12.
What is Delta's outlook for the September quarter?
Delta expects revenue up mid-teens, an operating margin of 11 to 13 percent and EPS of $2.00 to $2.50. This assumes fuel of about $3.15 per gallon.
Did Delta change its full-year guidance?
No, it affirmed adjusted EPS of $6.50 to $7.50 and free cash flow of $3 to $4 billion. It also expects gross leverage of approximately 2x by year-end.
How is Delta's balance sheet and capital return?
Adjusted net debt was $13.6 billion, down $709 million from the end of 2025, and liquidity was $7.7 billion. Delta announced a 15 percent dividend increase beginning in the September quarter.
Documents
From Delta Air Lines investor relations
- TranscriptCompany's official transcript ↗
- WebcastWebcast replay ↗
- Conference Call Non-GAAP ReconciliationsDocument ↗
- Form 10-QDocument ↗
SEC filing