Delta CEO: Airfares Sustainable, 2026 Profit Goal In Reach
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- Delta forecast Q3 per-share earnings of $2.00–$2.50 against analyst estimates of $2.02 and projected Q3 revenue up mid-teens versus the prior-year period, while reaffirming its January full-year EPS guidance of $6.50–$7.50.
- Delta's Q2 results topped Wall Street: adjusted EPS of $1.56 vs. $1.48 expected and adjusted revenue of $17.67 billion vs. $17.53 billion expected.
- Delta's premium cabin brought in $6.92 billion in Q2 revenue, narrowly outpacing the main cabin's $6.85 billion — the first time the front of the plane outsold the back.
- Bastian said Delta was passing roughly 60% of higher fuel costs to consumers and expects that share to approach 100% this quarter; federal data shows May airfare up nearly 27% year-over-year.
- Corporate travel rose in Q2, led by aerospace and defense, banking, and automotive, while World Cup demand — including inbound U.S. visitors — outpaced Delta's expectations.
- Delta's Trainer, Pennsylvania refinery posted an 83% revenue surge to $2.09 billion, even as consolidated Q2 net income fell 25% to $1.6 billion ($2.44 a share).
Why it matters: Bastian says Delta can keep charging premium fares even if oil eases — a stance that depends on rivals not adding capacity. Consumers already absorbed a 27% May airfare jump, and Delta says it has only passed through about 60% of higher fuel costs, with the rest landing this quarter. Hitting the $6.50–$7.50 EPS target depends on competitors continuing to hold the line on growth.
