Delta Air Lines (DAL) Q2 2026 earnings summary

Executive summary

• Achieved record June quarter revenue, with Q2 2026 GAAP revenue at $19.8 billion and adjusted revenue at $17.7 billion, up 14%–19% year-over-year, driven by strong demand and premium growth.

• Pre-tax profit reached $1.4 billion (adjusted), with EPS of $1.56, and net income for Q2 2026 was $1.60 billion, despite record-high fuel and refinery costs.

• Free cash flow for the first half was $1.4 billion, with Q2 2026 free cash flow at $209 million; liquidity at quarter-end was $7.7 billion.

• Announced a 15% dividend increase starting in the September quarter.

• Continued investment in customer experience, technology, and employee compensation, including a 4% pay increase and $500 million accrued for profit sharing.

Financial highlights

• Q2 2026 total operating revenue was $19.76 billion (+19% YoY); adjusted operating revenue rose 13.9% YoY to $17.7 billion.

• Net income for Q2 2026 was $1.60 billion; adjusted net income was $1.0 billion; diluted EPS was $2.44.

• Operating margin was 8.8%–9%; adjusted operating income was $1.6 billion (8.8% margin), down 24% YoY.

• Total fuel expense rose to $4.4 billion, with average fuel price per gallon at $3.93, up 66%–75% YoY.

• Adjusted net debt ended at $13.6 billion, down from year-end.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: adjusted EPS $6.50–$7.50, free cash flow $3–$4 billion, and gross leverage ~2x.

• September quarter revenue expected to grow mid-teens YoY, with operating margin of 11%–13% and EPS of $2.00–$2.50.

• Capital expenditures for 2026 projected to exceed $5 billion, primarily for aircraft and technology.

• Positive cash flow from operations is expected for the remainder of 2026.

• Long-term framework targets mid-teens margins and return on invested capital.