Delta says pricier tickets can keep 2026 profit target on track

Delta Air Lines says travelers should not expect cheaper oil to quickly turn into cheaper seats.

CEO Ed Bastian told CNBC that the carrier’s ability to charge higher fares looks durable, even after oil prices eased from multiyear highs. He pointed to strong travel demand, a broader mix of seat products and more restraint across the airline industry on adding flights.

Delta, the first major U.S. airline to report second-quarter results, also kept its full-year 2026 earnings outlook in place. The company said it still expects adjusted earnings of $6.50 to $7.50 per share, a forecast first issued in January.

For the third quarter, Delta projected earnings of $2.00 to $2.50 per share. Analysts surveyed by LSEG had expected $2.02 per share. The airline also said revenue for the July-to-September period should rise in the mid-teens from the same quarter in 2025.

Fuel costs move into fares

Airlines have been trimming growth plans and cutting unprofitable routes after a record jump in fuel costs this year, CNBC reported. That pressure has helped push ticket prices higher.

Federal data cited by CNBC showed May airfares were nearly 27% higher than a year earlier. Airline executives have said carriers have not yet pushed the full cost of pricier fuel onto customers.

Bastian told CNBC that Delta had passed about 60% of its higher fuel bill to consumers and expected that figure to get close to 100% this quarter.

Delta’s second-quarter revenue per available seat mile, a closely watched measure of how much an airline makes for each seat it flies, rose 17% from a year earlier. Its cost per available seat mile climbed faster, up 21%.

Premium seats pull ahead

Delta beat Wall Street’s second-quarter expectations on adjusted profit and revenue. The airline reported adjusted earnings of $1.56 per share, compared with the $1.48 expected by analysts, according to LSEG consensus estimates cited by CNBC.

Adjusted revenue came in at $17.67 billion, above the $17.53 billion analysts had expected.

Bastian told CNBC that demand was strong across the business and said Delta serves higher-income travelers in what he described as a K-shaped economy.

The premium cabin did more business than coach during the quarter. Delta said premium products, including first class, generated $6.92 billion in revenue, while main cabin revenue totaled $6.85 billion.

Bastian also said World Cup-related demand was stronger than expected, including travel into the United States. In its earnings release, Delta said corporate travel increased in the second quarter, led by the aerospace and defense, banking and automotive sectors.

Profit falls, revenue climbs

Delta’s net income declined 25% from a year earlier to $1.6 billion, or $2.44 per share. Operating revenue rose 19% from the 2025 quarter to $19.76 billion.

After excluding one-time items, including third-party refinery sales, Delta posted adjusted profit of $1.03 billion, or $1.56 per share.

The airline’s refinery in Trainer, Pennsylvania, was a bright spot. Delta said revenue from the facility jumped 83% to $2.09 billion.

This story draws on original reporting from CNBC.