DELTA AIR LINES, INC. recently released its 10-Q report for the June 2026 quarter. The company provides scheduled passenger and cargo air transportation in the United States and abroad, with operations organized into Airline and Refinery segments. Its network is built around hubs in Atlanta, Detroit, Minneapolis-St. Paul and Salt Lake City, plus coastal positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK and Seattle, alongside international hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Santiago, Sao Paulo, Seoul-Incheon and Tokyo; it also offers aircraft maintenance and engineering services, repair and overhaul work, and vacation packages. Delta operates a fleet of about 1,314 aircraft and is headquartered in Atlanta.
For the June 2026 quarter, Delta reported operating income of $1.9 billion, down $238 million from the prior-year period. Total operating revenue rose $3.1 billion to $19.8 billion, with passenger revenue up $1.7 billion to $15.6 billion and other revenue up $1.3 billion to $3.9 billion. Adjusted total revenue, which excludes third-party refinery sales, increased $2.2 billion, or 14%, to $17.7 billion.
Passenger revenue gains were led by premium products, which rose $1.0 billion to $6.9 billion, while main cabin ticket revenue increased $504 million to $6.9 billion. Loyalty travel awards contributed $1.2 billion, up $155 million, and travel-related services added $589 million, up $60 million. Cargo revenue climbed 39% to $294 million, and other revenue rose 50% to $3.9 billion.
By region, domestic passenger revenue increased 15% to $10.7 billion on 2% higher capacity, with yield up 13% and PRASM up 12%. Atlantic passenger revenue rose 8% to $3.1 billion, Latin America increased 4% to $990 million, and Pacific revenue climbed 15% to $832 million. Delta said domestic gains reflected higher pricing tied to sharply higher fuel costs and broad demand across premium, main, corporate and loyalty travel; Atlantic growth was driven by demand to London and European leisure markets; Pacific growth reflected South Korea and China strength.
Operating expense increased $3.3 billion to $17.9 billion. Aircraft fuel and related taxes jumped $1.7 billion to $4.1 billion, reflecting an 80% increase in average jet fuel purchase price and higher consumption. Salaries and related costs rose $360 million to $4.8 billion, refinery expense increased $950 million to $2.1 billion, and contracted services rose $108 million to $1.3 billion. Profit sharing fell $142 million to $328 million. Total CASM increased 21%, while CASM-Ex rose 6.8%.
Non-operating income fell to $145 million from $472 million a year earlier, mainly because mark-to-market gains on equity investments were lower. Interest expense, net improved to $144 million from $172 million, helped by debt reduction; Delta said it made $2.1 billion of debt and finance lease payments in the first half of 2026, including $1.3 billion of early repayments. For the six months ended June 30, operating revenue reached $35.6 billion, up $4.9 billion, while operating expense climbed $5.2 billion to $33.2 billion.
Cash from operations was $1.6 billion in the quarter, supported by ticket sales and SkyMiles partner sales, including $2.4 billion from American Express remuneration. Investing activities used $1.5 billion, mainly for capital expenditures, producing free cash flow of $209 million. Delta also reported $536 million of cash outflows for debt and finance lease repayments. Liquidity stood at $7.7 billion at June 30, 2026. Following these announcements, the company's shares moved -1.81%, and are now trading at a price of $87.39. If you want to know more, read the company's complete 10-Q report here.
