Delta Air Lines‘ The profit target has been reached this year as the carrier passes on higher fuel costs to customers, pricing power CEO Ed Bastian expects to continue even as oil prices ease from multi-year highs.
“I think it’s sustainable,” Bastian told CNBC in an interview. He said fares will remain strong because of strong demand, diverse seat options, and a high-volume airline industry that has learned in the past and won’t expand capacity as soon as oil drops.
Delta on Friday forecast third-quarter earnings per share between $2.00 and $2.50, compared with analysts’ estimates of $2.02 a share at the time. The company also estimated that revenue will increase in the mid-teens compared to the July-to-September period of 2025. For the full year, the carrier reaffirmed its January earnings per share forecast of between $6.50 and $7.50.
Here’s what Delta reported for the second quarter compared to Wall Street’s expectations, based on consensus estimates from LSEG:
- Earnings per share: $1.56 adjusted vs. $1.48 expected
- Net worth: $17.67 billion adjusted versus $17.53 billion expected
Bastian said demand is strong across the board, noting that Delta, the most profitable US airline, caters to high-income customers in the K-shaped economy.
Indeed, its sales of premium seats have surpassed those of the aircraft in coach. Its premium tickets like first class brought in $6.92 billion in revenue for the quarter, while main cabin reported $6.85 billion in revenue.
Bastian said demand for the World Cup was stronger than expected, including tourists entering the U.S. In the earnings call, the airline also said corporate travel increased in the second quarter, with the aerospace, defense, banking, and automotive industries leading the way in growth.
Carriers have scaled back growth plans and cut unprofitable flights after this year’s record drop in fuel prices, and airfares have soared. According to the organization’s latest data, May’s air fares have increased by about 27% compared to last year, although management says they have not yet passed on the entire higher fuel bill to consumers. Bastian said Delta is passing about 60% of buyers, and that should reach 100% this quarter.
Delta’s second-quarter revenue per available seat mile, a measure of how much the airline brings in for each seat flown, was up 17% from a year earlier, even though cost per available seat rose 21%. (Delta has other revenue streams including cargo, maintenance business and fuel refining.)
Delta’s revenue fell 25% in the second quarter from a year ago to $1.6 billion, or $2.44 a share, although operating income rose 19% from the 2025 period to $19.76 billion. Adjusting for one-time items including third-party sales, Delta posted earnings of $1.03 billion, or $1.56 a share.
The Delta refinery was also a bright spot, with revenue in Trainer, Pennsylvania, growing 83% to $2.09 billion.
