Delta Air Lines beat earnings and revenue expectations for Q2 2026, but the stock still dropped 4% shortly after the release. DAL had already jumped 28% year-to-date heading into the print, so the bar was high.
Adjusted EPS came in at $1.56, beating the $1.49 analyst estimate and even topping Delta’s own guidance range of $1.00–$1.50. Revenue hit a record $17.7 billion, up roughly 14% year-over-year, against expectations of $17.5 billion. Capacity was up just 1% — the gains came almost entirely from higher fares and better mix.
$DAL may be setting the tone for airline earnings.
Revenue climbed 30.3% Y/Y, the company beat estimates on EPS and sales, reaffirmed full-year guidance, and issued well-above-consensus Q3 EPS guidance.
The outlook could matter more than the beat itself. https://t.co/2ozckiHdX1
— Schaeffer's Investment Research (@schaeffers) July 10, 2026
CEO Ed Bastian called it straight: “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.”
That fuel expense is no small thing. Delta paid an average of $3.93 per gallon on an adjusted basis — a 75% jump from $2.25 a year earlier. CFO Erik Snell noted fare increases covered roughly 60% of that fuel cost jump, which actually outpaced the company’s historical recovery rate.
Premium demand was a clear bright spot. Premium ticket sales hit $6.92 billion, edging out main cabin revenue of $6.85 billion. Premium grew 17% year-over-year while main cabin grew 8%. Loyalty revenue climbed 19%, with American Express paying Delta $2.4 billion — up 16% from a year earlier.
Delta reaffirmed its full-year adjusted EPS guidance of $6.50–$7.50, a range it had actually pulled from its Q1 release back in April. Reinstating it sent a message of confidence, but the market had been hoping for an upward revision.
For Q3, Delta guided for adjusted EPS of $2.00–$2.50, ahead of the $2.02 analyst estimate, with revenue growth in the mid-teens and an operating margin of 11%–13%. That guidance assumes fuel at around $3.15 per gallon — a meaningful step down from Q2’s elevated levels.
GAAP net income fell 25% to $1.6 billion, or $2.44 per share, as the fuel hit weighed on the bottom line.
United Airlines and American Airlines also slipped more than 1.5% in early trading. The Global JETS ETF, which tracks the sector, has gained 25% over the past three months. Delta is up 31% over that period, United up 34%, and American up 51%.
Morgan Stanley analyst Ravi Shanker kept his Overweight rating and raised his price target to $115 from $105. TD Cowen’s Tom Fitzgerald maintained a Buy rating with a $106 target.
Delta announced a 15% dividend increase starting Q3 and reduced adjusted net debt by $709 million from year-end 2025 to $13.6 billion.
Earlier in the week, Delta also introduced a lower-priced entry-level fare for its Delta One business class cabin, extending tiered pricing into its premium products.
Delta was trading up roughly 2% in premarket Friday before giving back those gains post-release.
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