Delta Air Lines reported second-quarter 2026 revenue of $19.8 billion, up 19% from $16.6 billion a year earlier, while operating income fell to $1.9 billion from $2.1 billion and pre-tax income dropped to $2.0 billion from $2.6 billion.
On an adjusted basis, revenue rose 13.9% to $17.7 billion from $15.5 billion. Adjusted operating income declined to $1.6 billion from $2.1 billion, and adjusted pre-tax income fell to $1.4 billion from $1.8 billion. Adjusted earnings per share came in at $1.56, down from $2.12.
Fuel costs were the biggest pressure point. Adjusted fuel expense jumped 77% to $4.4 billion from $2.5 billion, while average fuel price rose 75% to $3.93 per gallon from $2.25. GAAP fuel expense increased 67% to $4.1 billion from $2.5 billion.
Revenue growth outpaced capacity growth. Total revenue per available seat mile increased 17% to 25.11 cents from 21.44 cents, while adjusted TRASM rose 12.4% to 22.45 cents from 19.97 cents. Capacity was up about 1%.
Operating expense climbed to $17.9 billion from $14.5 billion, a 23% increase. Adjusted operating expense rose 20% to $16.1 billion from $13.4 billion. Non-fuel unit cost increased 6.8% to 14.09 cents from 13.20 cents.
Cash generation weakened from a year ago. Operating cash flow fell to $1.6 billion from $1.9 billion on a GAAP basis and to $1.7 billion from $1.8 billion adjusted. Free cash flow was $209 million, down from $733 million in the prior-year period.
Delta reduced debt. Total debt and finance lease obligations declined to $14.0 billion from $15.1 billion, while adjusted net debt fell to $13.6 billion from $16.3 billion. The company said adjusted net debt was down $709 million from year-end 2025.
For the September quarter, Delta expects revenue to rise in the mid-teens versus a year earlier, operating margin to be 11% to 13%, and earnings per share to be $2.00 to $2.50. For full-year 2026, it reaffirmed earnings per share guidance of $6.50 to $7.50 and free cash flow of $3 billion to $4 billion.
Operationally, Delta said main cabin unit revenue posted its second straight quarter of growth, domestic unit revenue rose 12%, international unit revenue increased 8%, premium revenue climbed 17%, cargo revenue jumped 39%, and loyalty and related revenue grew 19%. American Express remuneration increased 16% to $2.4 billion. As a result of these announcements, the company's shares have moved -1.8% on the market, and are now trading at a price of $87.40. Check out the company's full 8-K submission here.
