Delta Air Lines Q1 2026 earnings
CNBC • • general
Key Points:
- Delta Air Lines plans to significantly reduce its capacity growth in the near term due to soaring fuel costs driven by the Middle East conflict, with capacity expected to be flat year-over-year in Q2.
- The airline forecasted adjusted Q2 earnings per share between $1 and $1.50, slightly below analyst expectations, but projected revenue growth in the low-teens percentage range, exceeding Wall Street forecasts.
- Delta's fuel expenses are expected to increase by $2 billion in Q2, with all-in fuel costs estimated at $4.30 per gallon, though its ownership of a refinery near Philadelphia provides a $300 million benefit this quarter.
- Despite higher travel costs and increased checked bag fees, demand remains strong, particularly for premium travel, with premium-ticket revenue up 14% in Q1 and main cabin revenue rising for the first time since late 2024.
- Delta reported Q1 net income of $423 million (64 cents per share), surpassing analyst expectations, and noted a 3% capacity decline as it invests in fleet renewal to increase its premium seat mix.
