# Delta Air Lines (DAL) Q2 2026 earnings

Results filed 2026-07-10 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/dal/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/27904/000002790426000029/0000027904-26-000029-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Operating revenue (GAAP) | $19,757 | up 19% from a year ago | GAAP |
| Operating revenue (adjusted) | $17.7 billion | up 14 percent from a year ago | non-GAAP |
| Net income (GAAP) | $1,604 | down 25% from a year ago | GAAP |
| Diluted EPS (GAAP) | $2.44 | down 25% from a year ago | GAAP |
| Adjusted diluted EPS | $1.56 | down 26% from a year ago | non-GAAP |
| Operating income (GAAP) | $1,864 | down 11% from a year ago | GAAP |
| Operating income (adjusted) | $1,563 | down 24% from a year ago | non-GAAP |
| Operating margin (GAAP) | 9.4% | down from 12.6% a year ago | GAAP |
| Operating margin (adjusted) | 8.8% | down from 13.3% a year ago | non-GAAP |
| Operating cash flow (GAAP) | $1,596 | down 14% from a year ago | GAAP |
| Free cash flow | $209 million | down 71% from a year ago | non-GAAP |
| After-tax return on invested capital (twelve months) | 10.9% |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Premium products ticket revenue | $6,920 | up 17% |
| Main cabin ticket revenue | $6,851 | up 8% |
| Loyalty and related revenue | $1,344 | up 19% |
| MRO revenue | $315 | up 32% |
| Cargo revenue | $294 | up 39% |
| Refinery revenue | $2,091 | up 83% |
| Adjusted TRASM | 22.45 | up 12.4% |
| Non-fuel unit cost (CASM-Ex) | 14.09¢ | up 6.8 percent year-over-year |

## 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

1. **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%.
2. **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.
3. **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.
4. **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.
5. **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.

## 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.

## Slides and investor documents

- [Transcript](https://s2.q4cdn.com/181345880/files/doc_events/2026/July/CORRECTED-TRANSCRIPT_-Delta-Air-Lines-Inc-DAL-US-Q2-2026-Earnings-Call-10-July-2026-10_00-AM-ET.pdf) (Company's official transcript)
- [Webcast](https://events.q4inc.com/attendee/372236688) (Webcast replay)
- [Conference Call Non-GAAP Reconciliations](https://s2.q4cdn.com/181345880/files/doc_financials/2026/q2/Q2-2026-Call-Script-Non-GAAPs-Final-v2.pdf) (Document)
- [Form 10-Q](https://d18rn0p25nwr6d.cloudfront.net/CIK-0000027904/95cbb9b6-3d75-4f67-aa86-5acc2de1b967.pdf) (Document)