Air carrier's stock reversed lower as the full-year outlook remained unchanged despite upbeat quarterly results

Delta Air Lines' profit dropped as the air carrier absorbed the highest quarterly fuel expense in its history.

Shares of Delta Air Lines swung into the red in early Friday trading, after the air carrier reported second-quarter earnings that beat expectations but kept its full-year profit guidance unchanged, reflecting some uncertainty about the outlook.

And while bottom-line results exceeded projections made three months ago, they still dropped sharply from a year ago as CEO Ed Bastian said the company $(DAL)$ absorbed "the highest quarterly fuel expense in our history."

Adjusted fuel expenses jumped 76.6%, to $4.41 billon, and fuel price per gallon climbed 74.7%, to $3.93, even after the company's refinery helped reduce costs by 11 cents per gallon. Nonfuel costs were up 8.2% to $11.09 billion.

The stock fell 2% in recent premarket trading, reversing an earlier gain of as much as 3.9% after the results were reported.

Hurt by the surge in costs, adjusted net income, which excludes nonrecurring items, fell 25.8% to $1.03 billion, while adjusted earnings per share declined to $1.56 from $2.12. But that beat the FactSet EPS consensus of $1.49 and EPS guidance provided in April of $1 to $1.50. In the first quarter, EPS of 64 cents had topped expectations of 58 cents.

For the current quarter, Delta expects EPS to rise to $2 to $2.50 from $1.71 a year ago.

"While still early, current trends provide a constructive setup for this strength to extend into the December quarter," said Chief Commercial Officer Joe Esposito.

Still, even after two quarters of EPS beats, the full-year guidance provided in January was kept unchanged at $6.50 to $7.50.

Meanwhile, operating revenue grew 13.9% from a year ago to $17.67 billion, above the average analyst estimate compiled by FactSet of $17.55 billion, with Esposito citing "broad demand strength."

Delta's continued investment in premium seats was still paying off, as premium revenue rose 17%, and 25% growth in premium corporate sales.

The stock has rallied 28.2% in 2026 through Thursday, while the U.S. Global Jets ETF JETS has climbed 15.5% and the S&P 500 index SPX has advanced 10.2%.

-Tomi Kilgore

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July 10, 2026 08:28 ET (12:28 GMT)

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