Delta Air Lines reported record second-quarter results that exceeded expectations on Friday morning as growth in the premium business continues to offset challenges like rising fuel costs and capacity reductions caused by those expenses.
Delta reported Q2 adjusted revenue of $17.67 billion compared to an estimated $17.53 billion, marking a 14% increase year over year and setting a record for the airline.
Delta also posted adjusted earnings per share of $1.56, above the $1.51 expected, and adjusted net income of $1.027 billion, up from $985.2 million.
Delta’s other Q2 earnings highlights included:
- Operating revenue of $19.8 billion
- Operating income of $1.9 billion with an operating margin of 9.4 percent
- Pre-tax income of $2.0 billion with a pre-tax margin of 10.2 percent
- Earnings per share of $2.44
- Operating cash flow of $1.6 billion
The company also and reinstated full-year guidance, seeing full-year adjusted EPS of $6.50 to $7.50, with free cash flow in the range of $3 billion to $4 billion.
Looking ahead to Q3, Delta anticipates revenue growth in the upper mid-teens, an operating margin of 11% to 13%, and EPS of $2.00 to $2.50.
Ed Bastian, Delta CEO told investors, “Today, we reported our June quarter results, and it is clear that Delta’s band and industry position are stronger than ever. We delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history, reflecting broad demand strength, growing brand preference and momentum across our diversified revenue base. This industry-leading performance is powered by the best people in the business.”
“Delta is executing from a position of strength, and we expect momentum to carry into the second half with double-digit margins and a return to earnings growth. For the full year, we are affirming the guidance we set at the start of the year to grow earnings by 20 percent, overcoming a multi-billion dollar fuel headwind. This reinforces Delta’s durability while positioning us to continue our momentum into 2027.”
Delta shares rose over 2% following the announcement.
By CEO NA Editorial Staff
