- Delta Airlines Inc.
- 08 April 2026 12:10:32
Source: Sharecast
The US airline posted GAAP revenue of $15.9bn for the first quarter, up about 10% year-on-year, but recorded a pre-tax loss of $214m.
On an adjusted basis, Delta reported record March-quarter revenue of $14.2bn, up 9.4%, with pre-tax income of $532m and earnings per share of 64 cents, ahead of market expectations.
Operating cash flow was $2.4bn.
Demand reportedly remained robust across both corporate and leisure segments, with premium, loyalty and maintenance revenues driving performance.
Premium revenue rose 14% year-on-year, while loyalty revenues increased 13%, supported by strong co-branded card spending.
Corporate travel sales also grew at a double-digit rate across all sectors, including banking, aerospace and technology, with surveys indicating most customers expected travel budgets to remain stable or increase in the current quarter.
However, the results were overshadowed by a surge in fuel costs, with Delta expecting a more than $2bn increase in fuel expenses through the June quarter as oil prices climbed due to the Iran war.
The company said it anticipated an all-in fuel price of around $4.30 per gallon, roughly double pre-conflict levels, although its in-house refinery was expected to provide a $300m benefit.
In response, Delta said it was cutting capacity growth and raising ancillary charges, including baggage fees, while reviewing its route network.
The airline said it planned to reduce passenger capacity by around 3.5% between April and June, with midweek and overnight flights among those most likely to be trimmed, as it looked to recoup 40% to 50% of the higher fuel costs.
It also indicated it could delay aircraft deliveries from Boeing and Airbus if elevated fuel prices persisted.
Despite the cost pressures, Delta guided to continued revenue momentum, forecasting low-teens percentage growth in the June quarter on flat capacity, alongside an operating margin of 6% to 8% and earnings per share of $1.00 to $1.50.
The company said it expected to generate around $1bn in pre-tax profit in the period.
Chief executive Ed Bastian said the group was taking “meaningful” action to protect margins and cash flow, while maintaining that demand remained “broad based” across geographies and product segments.
He added that the airline would not update its full-year outlook given ongoing uncertainty around fuel prices, although it continues to target annual earnings per share of $6.50 to $7.50.
Delta’s balance sheet continued to strengthen, with adjusted net debt reduced to $13.5bn, below pre-pandemic levels, and liquidity of $8.1bn at quarter-end.
The airline also highlighted its investment-grade credit ratings and largely fixed-rate debt structure as key advantages in navigating market volatility.
At 0705 EDT (1205 BST), shares in Delta Air Lines were up 11.26% in premarket trading in New York, at $73.01.
Reporting by Josh White for Sharecast.com.
