Delta Air Lines Q1 2026 earnings

Delta Airlines CEO Ed Bastian said the carrier will “meaningfully scale back” its capacity growth plans in the near term as fuel costs rise, solidifying the decline for airlines that have experienced a historic surge in jet fuel due to the Middle East war.

Shares rose more than 11% in premarket trading, extending gains for U.S. carriers after oil prices fell.

Delta on Wednesday forecast second-quarter earnings per share of $1 to $1.50; This was below the $1.52 stock analysts expected; Revenue was up “low teens” percentage points from a year ago, beating Wall Street forecasts of about 10%. Delta said capacity will likely remain steady throughout the year.

Delta said its fuel bill will be $2 billion higher this quarter due to increases in fuel costs.

Here’s what Delta reported for the first quarter compared to Wall Street’s expectations based on consensus estimates from LSEG:

• Earnings per share: 64 cents adjusted, 57 cents expected
• Revenues: Adjusted $14.2 billion, expected $14 billion

Delta becomes first major US airline to announce first-quarter results United AirlinesDelta and others had already reduced capacity for the quarter.

Less capacity could mean higher airfares, which are already on the rise. Delta also joined JetBlue Airlines and United will increase checked baggage fees on Tuesday. Carriers around the world are further affected by the increase in fuel costs due to their countries’ dependence on imports and have announced fuel surcharges or fare increases.

Despite higher travel costs, demand remains strong and Delta’s customer base continues to spend on travel, especially for higher-end products like larger seats, Bastian said.

Speaking to reporters, Bastian said it was not clear if or when customers would withdraw.

Delta has a refinery where it converts crude oil into jet fuel and other products like gasoline and diesel, giving it an advantage over other carriers.

“We don’t know where the fuel will go, but as long as fuel remains high the refinery will continue to help us,” Bastian told reporters.

The carrier said Delta expects to make $1 billion in pretax profits in the second quarter and $300 million in earnings from its refinery; This was a major negative for the facility near Philadelphia, which it purchased in April 2012. Phillips 66.

The increase in jet fuel prices since the US and Israel attacked Iran on February 28 has been sharper than the increase in crude oil. Jet fuel prices in major U.S. cities rose nearly 88% from Feb. 27 to April 6, according to industry group Airlines for America, citing data from Argus.

Delta expects all fuel costs to be $4.30 per gallon in the second quarter.

Bastian said the airline did not withdraw its full-year forecast but did not update it due to uncertainty in fuel prices. Delta predicted potentially record earnings this year when it reported its last earnings in January.

“We will be in a better position over the next few months as we learn more about the impact of the duration of the fuel surge,” Bastian said.

Oil futures fell sharply Wednesday after President Donald Trump said Tuesday he had agreed to suspend planned attacks on Iran’s infrastructure for two weeks and back down on his threat to order the imminent destruction of Iran’s “entire civilization,” and after Iran agreed to open the key shipping channel in the Strait of Hormuz.

Meanwhile, demand for premium travel continues to influence results. Delta said premium ticket revenue from first class and other pricier options compared to bus rose 14% in the first quarter of last year. Main cabin revenue increased for the first time since late 2024.

However, capacity fell 3% in the first three months of 2026 compared to last year “as continued investment in fleet renewal increases the premium seat mix.” the company said.

Rival United, the second-most profitable U.S. carrier, is trying to increase its premium seat footprint by investing in new in-car technology, new suites and other perks.

“I think they were smart by trying to copy us,” Bastian said.

Delta saw a downturn in some business travel last month due to a partial government shutdown during hour-long Transportation Security Administration queues at airports, but the travel segment appears to have rebounded, Bastian said.

Delta reported first-quarter net income of $423 million, or 64 cents per share, down from $291 million, or 45 cents per share, in the same period last year. Adjusting for one-time items, Delta reported 64 cents per share in the first quarter, above the 57 cents analysts expected.

Revenue, adjusted for third-party sales from refinery and other items, rose more than 9% to $14.2 million in the first quarter.