Delta Air Lines has become the first major U.S. carrier to report its second-quarter results.

The airline has reaffirmed its full-year profit target for 2026 and plans to pass on a greater portion of this year's increased fuel costs to passengers.

Chief Executive Ed Bastian stated in an interview that airfares are expected to remain robust even with the recent pullback in fuel prices.



Delta Air Lines is passing on higher fuel costs to travelers, and the company is on track to meet its full-year profit target. CEO Ed Bastian indicated that the airline's pricing power is expected to persist, even as crude oil prices have retreated from multi-year highs.

Bastian stated in an interview, "I believe the current high pricing is sustainable." He cited multiple factors supporting strong airfares: robust travel demand, a richer mix of cabin class products, and an industry-wide shift towards more disciplined operations, learning from past mistakes, which prevents immediate large-scale capacity expansion in response to falling oil prices.

Delta Air Lines issued its third-quarter guidance on Friday: an earnings per share range of $2.00 to $2.50, compared to the consensus analyst estimate of $2.02. The company expects July-September revenue to increase by approximately 15% year-over-year. For the full year, the airline maintained its January EPS guidance range of $6.50 to $7.50.

Here is a comparison of Delta's actual Q2 results versus Wall Street consensus estimates compiled by LSEG:

Adjusted Earnings Per Share: $1.56 | Market Expectation: $1.48

Adjusted Total Revenue: $17.67 billion | Market Expectation: $17.53 billion

Bastian noted strong demand across all travel segments. He mentioned that, as the most profitable U.S. airline, Delta Air Lines primarily serves higher-income customers in the context of a K-shaped economic recovery.

Premium cabin sales indeed outperformed standard economy. This quarter, revenue from premium tickets, including first class, reached $6.92 billion, compared to $6.85 billion from main cabin economy.

Bastian said travel demand driven by the World Cup exceeded expectations, with significant contributions from international visitors entering the U.S. The airline's earnings report also noted a recovery in business travel demand during the second quarter, with the aviation defense, banking, and automotive sectors leading the growth in business travel.

Following a significant surge in fuel prices this year, major airlines have scaled back capacity expansion plans and cut unprofitable routes, leading to a sharp increase in airfares. The latest U.S. federal data shows airfares in May were up nearly 27% year-over-year, but airline executives stated that the new fuel costs have not been fully passed on to consumers. Bastian revealed that Delta Air Lines has currently passed on only about 60% of the fuel premium to passengers, a figure expected to approach 100% this quarter.

The key metric for airline unit revenue, Revenue per Available Seat Mile (RASM), rose 17% year-over-year for Delta in Q2. However, Cost per Available Seat Mile (CASM) increased by 21%. (Delta has diversified revenue streams including cargo, aircraft maintenance, and its own refinery.)

Second-quarter net profit for Delta Air Lines fell 25% year-over-year to $1.6 billion, or $2.44 per share. Operating revenue increased 19% to $19.76 billion. Excluding one-time gains and losses such as the sale of third-party refinery assets, adjusted net profit was $1.03 billion, translating to earnings per share of $1.56.

The proprietary refinery business was a standout segment this quarter: revenue from its refinery in Trainer, Pennsylvania, surged 83% to $2.09 billion.