Delta Air Lines posted operating income of $1.9 billion in the June 2026 quarter, down $238 million from the same period a year earlier, even as revenue climbed sharply on stronger pricing and demand.
Total operating revenue rose to $19.757 billion from $16.648 billion, an increase of $3.109 billion, or 19%. On an adjusted basis, excluding third-party refinery sales, revenue increased 14% to $2.2 billion higher than the June 2025 quarter. Passenger revenue accounted for most of the gain, rising $1.740 billion, or 13%, to $15.607 billion.
Delta’s premium cabin was the biggest passenger revenue driver. Premium products revenue increased $1.021 billion, or 17%, to $6.920 billion, while main cabin revenue rose $504 million, or 8%, to $6.851 billion. Loyalty travel awards increased $155 million, or 14%, to $1.247 billion, and travel-related services rose $60 million, or 11%, to $589 million.
By geography, domestic passenger revenue increased 15% to $10.673 billion, with capacity up 2%. Atlantic revenue rose 8% to $3.112 billion, Latin America revenue increased 4% to $990 million, and Pacific revenue climbed 15% to $832 million. Delta said domestic growth reflected higher pricing in response to rapidly rising fuel costs and broad-based demand across premium, main, corporate and loyalty. Atlantic strength was driven by demand to London and European leisure markets. Latin America was supported by Caribbean demand, while Pacific revenue benefited from South Korea growth through the Korean Air joint venture and stronger China capacity.
Other revenue jumped 50% to $3.856 billion from $2.569 billion. Refinery revenue surged 83% to $2.091 billion, loyalty and related revenue rose 19% to $1.344 billion, and MRO revenue increased 32% to $315 million. Cargo revenue advanced 39% to $294 million, largely on volume.
Operating expenses rose even faster than revenue, increasing $3.347 billion, or 23%, to $17.893 billion. Aircraft fuel and related taxes jumped 67% to $4.109 billion, reflecting an 80% increase in average jet fuel purchase price and higher consumption. Refinery expense also increased 83% to $2.091 billion. Salaries and related costs rose 8% to $4.762 billion. Profit sharing fell 30% to $328 million from $470 million.
Delta’s total operating cost per available seat mile increased 21%, while CASM-ex rose 6.8%.
Non-operating income fell to $145 million from $472 million a year earlier. The company said the decline was mainly due to lower mark-to-market gains on equity investments. Interest expense, net improved to a $144 million expense from $172 million, helped by debt reduction. Gain on investments, net dropped to $349 million from $735 million.
For the first six months of 2026, Delta reported operating revenue of $35.611 billion, up $4.923 billion, or 16%, from $30.688 billion. Passenger revenue rose 10% to $27.909 billion, led by premium products revenue of $12.282 billion, up 16%, and main cabin revenue of $12.256 billion, up 5%.
Year to date, other revenue increased 46% to $7.181 billion. Refinery revenue climbed 70% to $3.745 billion, loyalty and related revenue rose 16% to $2.565 billion, and MRO revenue increased 78% to $695 million.
Operating expenses for the six months increased 19% to $33.246 billion. Fuel costs rose 41% to $6.851 billion, salaries and related costs increased 10% to $9.302 billion, and refinery expense climbed 70% to $3.745 billion. MRO expense jumped 63% to $601 million.
For the quarter, Delta generated $1.6 billion of cash from operating activities, including $2.4 billion of remuneration from American Express. Investing activities used $1.5 billion, mainly for capital expenditures. Free cash flow was $209 million. The company also used $536 million for debt and finance lease repayments.
As of June 30, 2026, Delta reported liquidity of $7.7 billion, including cash, cash equivalents, short-term investments and undrawn revolving credit capacity. As a result of these announcements, the company's shares have moved -1.81% on the market, and are now trading at a price of $87.39. For the full picture, make sure to review DELTA AIR LINES, INC.'s 10-Q report.
