Delta Air Lines (DAL) Q1 2026 earnings summary

Executive summary

• March quarter earnings rose 40% year-over-year, driven by robust demand and record revenue, despite higher fuel costs and industry disruptions.

• Adjusted net debt fell below 2019 levels, reinforcing a strong investment-grade balance sheet.

• $1.3 billion in profit-sharing was distributed to employees, reflecting strong performance.

• Investments in fleet renewal, digital experience, and customer service reinforce brand strength and operational resilience.

• Operating income for Q1 2026 was $501M, down $68M from Q1 2025, despite a $1.8B increase in total revenue year-over-year, driven by premium products, loyalty revenue, refinery sales, and MRO growth.

Financial highlights

• Adjusted operating revenue reached $14.2 billion, up 9.4% year-over-year, a March quarter record.

• Adjusted operating income was $652 million (4.6% margin), up 12% year-over-year.

• Net loss of $289M (EPS: -$0.44) vs. net income of $240M (EPS: $0.37) in Q1 2025.

• Adjusted operating cash flow was $2.4 billion; free cash flow was $1.2 billion.

• Adjusted net debt ended at $13.5 billion, down 20% year-over-year.

Outlook and guidance

• June quarter revenue expected to grow low-teens percent year-over-year on flat capacity.

• June quarter pre-tax profit projected at ~$1 billion, despite a $2 billion increase in fuel expense.

• June quarter operating margin guidance: 6–8%; EPS guidance: $1.00–$1.50.

• Projected 2026 capital expenditures of ~$5.5B, primarily for aircraft and technology.

• Full-year outlook not updated due to fuel price volatility, but long-term financial targets remain on track.