Delta Air Lines said customers aren't shrinking away from higher flight prices that have helped offset sky-high fuel costs.

The Atlanta airline reported Friday that total operating revenue climbed 19% in the second quarter to $19.76 billion. Excluding third-party refinery sales and other factors, adjusted revenue rose 14% to $17.67 billion. That topped analyst forecasts for $17.55 billion, according to FactSet.

The gains were driven by higher prices, as the supply of seats Delta flew grew by just 1%. The company reported improvements in main cabin ticket sales, while its other revenue sources, including premium seats and revenue from its loyalty program and cargo division, were up 18%.

Chief Executive Ed Bastian said consumers are still prioritizing travel, even as economic pressures weigh on other pockets of consumer spending. "They may be buying less of something else, but travel remains at the top of their wish list," he said.

Overall profit fell, however, as cost increases, led by fuel, outpaced the revenue jump. The airline posted quarterly earnings of $1.6 billion, or $2.44 a share, down from $2.13 billion, or $3.27 a share, a year earlier. Adjusted earnings were $1.56 a share, beating analyst estimates by 7 cents.

Sturdy demand and higher fares helped Delta blunt the impact of what it called its highest quarterly fuel costs in history. Surging oil prices from the war in Iran sent jet fuel prices skyrocketing in March, weighing on profitability across the airline industry.

For Delta, fuel cost an average of $3.66 per gallon in the second quarter, up from $2.21 a gallon in the same quarter a year earlier. The company partially insulated itself from the fuel headwind thanks to its 2012 purchase of a Pennsylvania refinery that processes crude into fuel.

Bastian said fare increases only managed to cover 60% of the increase in Delta's fuel costs. Its total operating costs climbed 23% during the quarter to $17.89 billion.

Delta is sticking to its guidance for the full year and said sales in the current quarter should see growth in the mid-teen-percentage range while fuel costs moderate to $3.15 per gallon.

Third-quarter adjusted earnings, which strip out one-time items, are on track to hit $2 to $2.50 a share, Delta said. Analysts polled by FactSet are projecting $2.03 a share.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

July 10, 2026 06:54 ET (10:54 GMT)

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