Delta Air Lines (NYSE: DAL) today reported financial results for the June quarter and provided its outlook for the September quarter and full year 2026. Highlights of the June quarter, including both GAAP and adjusted metrics, are on page five and incorporated here.

"Today, we reported our June quarter results, and it is clear that Delta's brand and industry position are stronger than ever. We delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history, reflecting broad demand strength, growing brand preference and momentum across our diversified revenue base. This industry-leading performance is powered by the best people in the business," said Ed Bastian, Delta's chief executive officer.

"Delta is executing from a position of strength, and we expect momentum to carry into the second half with double-digit margins and a return to earnings growth. For the full year, we are affirming the guidance we set at the start of the year to grow earnings by 20 percent, overcoming a multi-billion dollar fuel headwind. This reinforces Delta's durability while positioning us to continue our momentum into 2027."

June Quarter 2026 GAAP Financial Results

• Operating revenue of $19.8 billion
• Operating income of $1.9 billion with an operating margin of 9.4 percent
• Pre-tax income of $2.0 billion with a pre-tax margin of 10.2 percent
• Earnings per share of $2.44
• Operating cash flow of $1.6 billion

June Quarter 2026 Non-GAAP Financial Results

• Operating revenue of $17.7 billion
• Operating income of $1.6 billion with an operating margin of 8.8 percent
• Pre-tax income of $1.4 billion with a pre-tax margin of 7.7 percent
• Earnings per share of $1.56
• Operating cash flow of $1.7 billion

Financial Guidance¹

Revenue Environment and Outlook

"Revenue grew 14 percent in the June quarter, at the high end of our expectations, increasing more than $2 billion over last year on broad demand strength," said Joe Esposito, Delta's chief commercial officer.

"With continued momentum across customer segments and diverse revenue streams, we are confident in the sustainability of yield and revenue strength. For the September quarter, we expect revenue to grow mid-teens over prior year on modest capacity growth, with unit revenue growth improving sequentially. While still early, current trends provide a constructive setup for this strength to extend into the December quarter."

• Record June quarter revenue reflects broad demand strength and growing brand preference: June quarter total revenue increased 14 percent over the same period last year to a record $17.7 billion on approximately 1 percent capacity growth. Adjusted total unit revenue (TRASM) grew 12.4 percent over prior year. Main cabin unit revenue grew double-digits, marking the second consecutive quarter of positive main cabin growth. Domestic unit revenue grew 12 percent year-over-year and international unit revenue increased 8 percent, led by Latin.
• Diversified, high-margin revenue streams continue to differentiate Delta's performance: Diverse revenue streams accounted for 61 percent of total revenue, up 2 points versus the same period last year. Premium revenue grew 17 percent year-over-year on yield strength and continued investment in premium seats. MRO revenue growth of 32 percent was primarily on legacy engine platforms. Cargo revenue increased 39 percent, driven largely by volume.
• Loyalty momentum powered by growing member engagement across ecosystem: Loyalty and related revenue grew 19 percent, with SkyMiles member engagement continuing to expand beyond air travel within the partner ecosystem. American Express remuneration of $2.4 billion grew 16 percent over last year, supported by accelerating card acquisitions and the seventh consecutive quarter of double-digit year-over-year growth in cardholder spend. Travel products and non-air partnership revenue increased nearly 20 percent over prior year.
• Corporate sales³ grew double-digits in all sectors: Corporate sales accelerated in the June quarter, led by Aerospace & Defense, Banking, and Automotive, with strong performance in coastal and core hubs. Sustained strength in premium product demand drove a more than 25 percent increase in premium corporate sales, benefiting from recent investments in Delta Comfort and Delta Premium Select.

¹ Non-GAAP measures; Refer to Non-GAAP reconciliations for historical comparison figures

² Adjusted debt to EBITDAR

Cost Performance and Outlook

"Delta delivered June quarter results above guidance, with an operating margin of 8.8 percent and earnings of $1.56 per share. In the September quarter, we expect earnings per share to grow over prior year to $2.00 to $2.50 on an operating margin of 11 to 13 percent," said Erik Snell, Delta's chief financial officer. "Non‑fuel unit cost performance is expected to improve modestly from the June quarter with further progression in the December quarter as capacity growth begins to normalize. This puts us back on a path toward our long-term framework of low-single-digit non-fuel unit cost growth."

June Quarter 2026 Cost Performance

• Operating expense of $17.9 billion and adjusted operating expense of $16.1 billion
• Adjusted non-fuel costs of $11.1 billion
• Non-fuel CASM was 14.09¢, an increase of 6.8 percent year-over-year
• Adjusted fuel expense of $4.4 billion was up 77 percent year-over-year
• Adjusted fuel price of $3.93 per gallon increased 75 percent year-over-year with a refinery benefit of 11¢ per gallon inclusive of a 5¢ discrete impact from a temporary refinery outage
• Fuel efficiency, defined as gallons per 1,000 ASMs, was 14.3

Balance Sheet, Cash and Liquidity

"Through the first half, we generated $4.1 billion of operating cash flow and delivered $1.4 billion of free cash flow. The durability of our cash generation enables us to consistently reinvest in the business, strengthen our balance sheet and grow shareholder returns. Debt reduction remains a top priority, and we expect to reach gross leverage of approximately 2x by year-end," Snell said.

• Adjusted net debt of $13.6 billion at June quarter end, a reduction of $709 million from the end of 2025
• Payments on debt and finance lease obligations for the June quarter of $536 million
• Weighted average interest rate of 4.9 percent with 78 percent fixed rate debt and 22 percent variable rate debt
• Adjusted operating cash flow in the June quarter of $1.7 billion, and with gross capital expenditures of $1.4 billion, free cash flow was $209 million
• Air Traffic Liability ended the quarter at $10.0 billion
• Liquidity⁴ of $7.7 billion at quarter-end, including $3.1 billion in undrawn revolver capacity

⁴ Includes cash and cash equivalents, short-term investments and undrawn revolving credit facilities

June Quarter 2026 Highlights

Operations, Network and Fleet

• Led all carriers⁵ in on-time arrival and departure performance for the quarter and set an all-time⁶ Delta record for domestic mishandled baggage rate (MBR).
• Implemented proprietary Baggage AI technology in Atlanta which has driven improvement in Atlanta's year-to-date MBR by over 25 percent versus last year's strong baseline, with June improving 50 percent.
• Took delivery of 11 aircraft in the June quarter, including A350-900, A321neo, and A220-300 aircraft.
• Launched daily non-stop service from Los Angeles to Hong Kong and Chicago O'Hare, adding connectivity to key business markets from Los Angeles.
• Launched service to Porto, Malta, and Sardinia while adding service to Madrid, Nice, Rome, and Barcelona.
• Grew MRO presence and partnership portfolio with IndiGo (CFM56 engines) & LATAM (A320 components).

Culture and People

• Continued to invest in the Delta people with a 4 percent pay raise for eligible employees worldwide.
• Accrued nearly $500 million in profit sharing year-to-date towards next February's payout.
• Named to Points of Light's Civic 50 list for the ninth year in a row, the only commercial airline recognized among companies noted for their corporate social responsibility and civic engagement.
• Transported more than two dozen WWII veterans from Atlanta to Normandy, France to participate in D-Day remembrance ceremonies, honoring the 82nd anniversary of the Allied landings.
• Ranked No. 1 in Talent Readiness among the Wall Street Journal Leadership Institute's Best Companies for the Future index.
• Recognized as the No. 1 corporate blood drive sponsor with the American Red Cross for the ninth consecutive year with 15,911 units of blood collected at 392 blood drives in the last 12 months.

Customer Experience and Loyalty

• Ranked No. 1 best U.S. airline for eighth consecutive year by The Points Guy.
• Unveiled Delta's next-generation Delta One suite for the A350-1000 fleet and announced an expanded suite offering for the A330ceo fleet, extending Delta's lead with the most business class suites of any U.S. airline.
• Enhanced Delta - American Express co-brand card portfolio with new travel benefits including a Delta exclusive benefit allowing card Members to check a second bag free on domestic Delta flights with no increase to the annual fee.
• Over 95 percent of aircraft are already equipped with fast, free Wi-Fi for SkyMiles members, and will reach 100 percent by year-end. New satellite upgrades are also coming online soon to deliver faster speeds and broader global coverage.
• Expanded Delta Sync partnerships, including new collaborations with The Wall Street Journal and Fox ONE to further enhance the onboard experience.
• Enhanced the partnership with T-Mobile, now offering T-Mobile customers who link their SkyMiles membership a complimentary premium beverage on board.
• Relaunched and expanded the decade-long partnership with Airbnb allowing SkyMiles members to earn miles on where they stay and on experiences once they arrive.
• Continued Delta Concierge rollout to over 50 percent of SkyMiles members, offering expanded self‑service and messaging during travel through an AI-enabled digital assistant in the Fly Delta app.
• Opened a second Delta One Lounge at LAX, growing system to five Delta One Lounges and 55 Sky Clubs.

Environmental Sustainability

• Issued the 2025 Delta Difference Report, highlighting Delta's continued commitment to a sustainable future.
• Began installation of innovative finlet aerodynamic devices on 737 fleet reducing emissions and fuel burn.

⁵ FlightStats preliminary data for Delta flights system wide. All carriers is defined as competitive set (AA, AS, B6, DL, UA, and WN) from Apr 1 - Jun 30, 2026. On-time performance includes A0, and A14. Departure performance defined as D0

⁶ Excludes COVID years

June Quarter 2026 Results

June quarter results have been adjusted primarily for third-party refinery sales, gains/losses on investments and Monroe hedge results as described in the reconciliations in Note A.