Delta Air Lines, Inc.
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. MD&A
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our Condensed Consolidated Financial Statements and the related notes and other financial information included elsewhere in this Quarterly Report on Form 10-Q and our audited Consolidated Financial Statements and related notes included in our 2025 Form 10-K.
June 2026 Quarter Financial Highlights
Our operating income for the June 2026 quarter was $1.9 billion, a decrease of $238 million compared to the June 2025 quarter.
Revenue. Compared to the June 2025 quarter, our total revenue increased $3.1 billion. Passenger revenue increased $1.7 billion compared to the June 2025 quarter on higher pricing in response to the rapid increase in fuel costs and broad based demand strength across premium, main, corporate and loyalty. In addition, the increase in total revenue was driven by higher refinery sales to third parties and growth in our cargo and MRO businesses. Total revenue, adjusted (a non-GAAP financial measure, which excludes revenue related to refinery sales to third parties) increased in the June 2026 quarter by $2.2 billion, or 14%, compared to the June 2025 quarter.
Operating Expense. Total operating expense in the June 2026 quarter increased $3.3 billion, or 23%, compared to the June 2025 quarter, primarily due to higher aircraft fuel costs, expenses related to refinery sales to third parties, and salaries and related costs. Total operating expense, adjusted (a non-GAAP financial measure, which primarily excludes expenses related to refinery sales to third parties) in the June 2026 quarter increased $2.7 billion, or 20%, compared to the June 2025 quarter.
Our total operating cost per available seat mile ("CASM") increased 21% compared to the June 2025 quarter, while non-fuel unit cost ("CASM-Ex", a non-GAAP financial measure) increased 6.8%.
Non-Operating Results. Total non-operating income was $145 million in the June 2026 quarter, compared to $472 million in the June 2025 quarter, primarily due to lower mark-to-market gains on certain of our equity investments in the June 2026 quarter compared to the June 2025 quarter.
Cash Flow. During the June 2026 quarter, operating activities generated $1.6 billion, primarily from ticket sales and the sale of SkyMiles to our partners. Remuneration from American Express was $2.4 billion in the June 2026 quarter.
Cash flows used in investing activities during the quarter totaled $1.5 billion primarily from capital expenditures. These operating and investing activities yielded free cash flow (a non-GAAP financial measure) of $209 million in the June 2026 quarter. Additionally, we had cash outflows of $536 million related to repayments of our debt and finance leases.
Our cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities ("liquidity") as of June 30, 2026 was $7.7 billion.
The non-GAAP financial measures referenced above for total revenue, adjusted, operating expense, adjusted, CASM-Ex and free cash flow are defined and reconciled in "Supplemental Information" below.
Delta Air Lines, Inc. | June 2026 Form 10-Q | 18 | ||||||
Item 2. MD&A - Results of Operations
Results of Operations - Three Months Ended June 30, 2026 and 2025
Total Operating Revenue
Three Months Ended June 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||
(in millions)(1) | 2026 | 2025 | |||||||||||||||||
| Ticket - Main cabin | $ | 6,851 | $ | 6,347 | $ | 504 | 8 | % | |||||||||||
| Ticket - Premium products | 6,920 | 5,899 | 1,021 | 17 | % | ||||||||||||||
| Loyalty travel awards | 1,247 | 1,092 | 155 | 14 | % | ||||||||||||||
| Travel-related services | 589 | 529 | 60 | 11 | % | ||||||||||||||
| Total passenger revenue | $ | 15,607 | $ | 13,867 | $ | 1,740 | 13 | % | |||||||||||
| Cargo | 294 | 212 | 82 | 39 | % | ||||||||||||||
| Other | 3,856 | 2,569 | 1,287 | 50 | % | ||||||||||||||
| Total operating revenue | $ | 19,757 | $ | 16,648 | $ | 3,109 | 19 | % | |||||||||||
| TRASM (cents) | 25.11 | ¢ | 21.44 | ¢ | 3.67 | ¢ | 17 | % | |||||||||||
Third-party refinery sales | (2.66) | (1.47) | (1.19) | 81 | % | ||||||||||||||
TRASM, adjusted(2) | 22.45 | ¢ | 19.97 | ¢ | 2.48 | ¢ | 12.4 | % | |||||||||||
(1)Total amounts in the table above may not calculate exactly due to rounding.
(2)Total revenue per available seat mile ("TRASM"), adjusted is a non-GAAP financial measure. For additional information on adjustments to TRASM, see "Supplemental Information" below.
Compared to the June 2025 quarter, total revenue increased $3.1 billion, as a result of higher pricing in response to the rapid increase in fuel costs and broad based demand strength across premium, main, corporate and loyalty. In addition, the increase in total revenue was driven by higher refinery sales to third parties and growth in our cargo and MRO businesses. Cargo revenue increased 39%, driven largely by volume.
Passenger Revenue by Geographic Region
Increase (Decrease) vs. Three Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| (in millions) | Three Months Ended June 30, 2026 | Passenger Revenue | RPMs (Traffic) | ASMs (Capacity) | Passenger Mile Yield | PRASM | Load Factor | |||||||||||||||||||
| Domestic | $ | 10,673 | 15 | % | 2 | % | 2 | % | 13 | % | 12 | % | — | pts | ||||||||||||
| Atlantic | 3,112 | 8 | % | (1) | % | 1 | % | 9 | % | 7 | % | (2) | pts | |||||||||||||
| Latin America | 990 | 4 | % | (8) | % | (7) | % | 13 | % | 12 | % | (1) | pt | |||||||||||||
| Pacific | 832 | 15 | % | 7 | % | 8 | % | 7 | % | 7 | % | (1) | pt | |||||||||||||
| Total | $ | 15,607 | 13 | % | 1 | % | 1 | % | 12 | % | 11 | % | (1) | pt | ||||||||||||
Domestic
Domestic passenger revenue increased 15% in the June 2026 quarter compared to the June 2025 quarter on a 2% increase in capacity. Domestic revenue increased on higher pricing in response to the rapid increase in fuel costs and broad based demand strength across premium, main, corporate and loyalty.
International
International passenger revenue for the June 2026 quarter increased 8% compared to the June 2025 quarter. The increase in the Atlantic region is primarily driven by demand to London and European leisure markets. Revenue growth in the Latin America region reflects demand strength to the Caribbean, which was partially offset by lower capacity to Mexican leisure destinations due to civil unrest in several of our locations earlier in 2026. Pacific region revenue growth reflects continued growth in South Korea enabled through our joint venture with Korean Air and strong results on increased China capacity.
Delta Air Lines, Inc. | June 2026 Form 10-Q | 19 | ||||||
Item 2. MD&A - Results of Operations
Other Revenue
Three Months Ended June 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||
| (in millions) | 2026 | 2025 | |||||||||||||||||
| Refinery | $ | 2,091 | $ | 1,141 | $ | 950 | 83 | % | |||||||||||
| Loyalty and related | 1,344 | 1,127 | 217 | 19 | % | ||||||||||||||
| MRO | 315 | 239 | 76 | 32 | % | ||||||||||||||
| Miscellaneous | 106 | 62 | 44 | 71 | % | ||||||||||||||
| Other revenue | $ | 3,856 | $ | 2,569 | $ | 1,287 | 50 | % | |||||||||||
Refinery. Refinery sales to third parties increased $950 million compared to the June 2025 quarter. See "Refinery Segment" below for additional details on the refinery's operations, including third party refinery sales.
Loyalty and Related. This primarily relates to revenue from brand usage by third parties embedded in miles sold. Loyalty and related also includes the redemption of miles for non-travel awards and revenue from our vacation package operations, lounge access (including access provided to certain American Express cardholders) and travel products (e.g., commissions from car rentals or hotels booked with our commercial partners). Most of the increase compared to the prior period is driven by higher customer spend on American Express cards and new card acquisitions as we refreshed our co-brand credit card portfolio with new and enhanced travel benefits.
MRO. This represents revenue from our Delta TechOps third-party maintenance, repair and overhaul ("MRO") business. The increase compared to the prior period resulted from a shift in mix to work on more legacy engines than next generation engines, which we expect to continue throughout 2026.
Miscellaneous. This is primarily composed of revenues related to codeshare agreements and international commercial joint venture contractual settlements.
Delta Air Lines, Inc. | June 2026 Form 10-Q | 20 | ||||||
Item 2. MD&A - Results of Operations
Operating Expense
Three Months Ended June 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||
| (in millions) | 2026 | 2025 | |||||||||||||||||
| Salaries and related costs | $ | 4,762 | $ | 4,402 | $ | 360 | 8 | % | |||||||||||
| Aircraft fuel and related taxes | 4,109 | 2,458 | 1,651 | 67 | % | ||||||||||||||
| Refinery expense | 2,091 | 1,141 | 950 | 83 | % | ||||||||||||||
| Contracted services | 1,263 | 1,155 | 108 | 9 | % | ||||||||||||||
| Landing fees and other rents | 978 | 878 | 100 | 11 | % | ||||||||||||||
| Aircraft maintenance materials and outside repairs | 689 | 591 | 98 | 17 | % | ||||||||||||||
| Regional carrier expense | 673 | 651 | 22 | 3 | % | ||||||||||||||
| Passenger commissions and other selling expenses | 726 | 673 | 53 | 8 | % | ||||||||||||||
| Depreciation and amortization | 656 | 602 | 54 | 9 | % | ||||||||||||||
| Passenger service | 489 | 482 | 7 | 1 | % | ||||||||||||||
| MRO expense | 273 | 229 | 44 | 19 | % | ||||||||||||||
| Profit sharing | 328 | 470 | (142) | (30) | % | ||||||||||||||
| Aircraft rent | 168 | 137 | 31 | 23 | % | ||||||||||||||
| Other | 688 | 677 | 11 | 2 | % | ||||||||||||||
| Total operating expense | $ | 17,893 | $ | 14,546 | $ | 3,347 | 23 | % | |||||||||||
Salaries and Related Costs. The increase in salaries and related costs primarily resulted from the implementation of 4% base pay increases for eligible employees effective on both June 1, 2026 and June 1, 2025 and for Delta pilots on January 1, 2026.
Aircraft Fuel and Related Taxes. Aircraft fuel and related taxes increased $1.7 billion compared to the June 2025 quarter primarily due to an 80% increase in our average jet fuel purchase price and an increase in consumption consistent with the 1% increase in capacity. We expect that fuel consumption for the remainder of 2026 will remain aligned with capacity changes compared to 2025, while elevated jet fuel costs are anticipated to persist until recent market disruptions and geopolitical events are resolved.
Refinery Expense. This includes expenses associated with refinery sales to third parties. See "Refinery Segment" below for additional details on the refinery's operations.
Landing Fees and Other Rents. The increase in landing fees and other rents resulted from higher rates charged by airports following extensive redevelopment projects at numerous facilities and more flights compared to 2025.
Aircraft Maintenance Materials and Outside Repairs. The increase in aircraft maintenance materials and outside repairs expense primarily resulted from the timing of engine maintenance activities.
Profit Sharing. Profit sharing decreased by $142 million due to lower quarterly results compared to the June 2025 quarter. Our profit sharing program pays 10% to all eligible employees for the first $2.5 billion of annual profit, as defined by the terms of the program, and 20% of annual profit above $2.5 billion.
Delta Air Lines, Inc. | June 2026 Form 10-Q | 21 | ||||||
Item 2. MD&A - Results of Operations
Results of Operations - Six Months Ended June 30, 2026 and 2025
Total Operating Revenue
Six Months Ended June 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||
(in millions)(1) | 2026 | 2025 | |||||||||||||||||
| Ticket - Main cabin | $ | 12,256 | $ | 11,709 | $ | 547 | 5 | % | |||||||||||
| Ticket - Premium products | 12,282 | 10,605 | 1,677 | 16 | % | ||||||||||||||
| Loyalty travel awards | 2,277 | 2,033 | 244 | 12 | % | ||||||||||||||
| Travel-related services | 1,094 | 1,000 | 94 | 9 | % | ||||||||||||||
| Total passenger revenue | $ | 27,909 | $ | 25,347 | $ | 2,562 | 10 | % | |||||||||||
| Cargo | 521 | 421 | 100 | 24 | % | ||||||||||||||
| Other | 7,181 | 4,920 | 2,261 | 46 | % | ||||||||||||||
| Total operating revenue | $ | 35,611 | $ | 30,688 | $ | 4,923 | 16 | % | |||||||||||
| TRASM (cents) | 24.08 | ¢ | 21.01 | ¢ | 3.07 | ¢ | 15 | % | |||||||||||
Third-party refinery sales | (2.53) | (1.51) | (1.02) | 68 | % | ||||||||||||||
TRASM, adjusted(2) | 21.55 | ¢ | 19.50 | ¢ | 2.05 | ¢ | 11 | % | |||||||||||
(1)Total amounts in the table above may not calculate exactly due to rounding.
(2)TRASM, adjusted is a non-GAAP financial measure. For additional information on adjustments to TRASM, see "Supplemental Information" below.
Unless otherwise discussed below, the changes in total revenue line items, as well as the underlying reasons for these changes, compared to the six months ended June 30, 2025, are consistent with the discussion above under Results of Operations - Three Months Ended June 30, 2026 and 2025.
Compared to the six months ended June 30, 2025, total revenue increased $4.9 billion, or 16%, on a 1% increase in capacity.
Passenger Revenue by Geographic Region
Increase (Decrease) vs. Six Months Ended June 30, 2025 | ||||||||||||||||||||||||||
| (in millions) | Six Months Ended June 30, 2026 | Passenger Revenue | RPMs (Traffic) | ASMs (Capacity) | Passenger Mile Yield | PRASM | Load Factor | |||||||||||||||||||
| Domestic | $ | 19,392 | 11 | % | 2 | % | 2 | % | 10 | % | 10 | % | — | pts | ||||||||||||
| Atlantic | 4,629 | 9 | % | 1 | % | 2 | % | 8 | % | 7 | % | (1) | pt | |||||||||||||
| Latin America | 2,317 | 1 | % | (6) | % | (5) | % | 8 | % | 7 | % | (1) | pt | |||||||||||||
| Pacific | 1,571 | 13 | % | 6 | % | 6 | % | 6 | % | 7 | % | 1 | pt | |||||||||||||
| Total | $ | 27,909 | 10 | % | 1 | % | 1 | % | 9 | % | 9 | % | — | pts | ||||||||||||
Domestic passenger revenue for the six months ended June 30, 2026 increased 11% on 2% higher capacity compared to the six months ended June 30, 2025. International passenger revenue for the six months ended June 30, 2026 increased 7% on 1% higher capacity compared to the six months ended June 30, 2025. Revenue growth in the year to date period compared to the prior year was more broad-based in the three months ended June 30, 2026 compared to the three months ended March 31, 2026 on higher pricing due to fuel cost increases that began in March 2026.
Other Revenue
Six Months Ended June 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||||
| (in millions) | 2026 | 2025 | |||||||||||||||||
| Refinery | $ | 3,745 | $ | 2,203 | $ | 1,542 | 70 | % | |||||||||||
| Loyalty and related | 2,565 | 2,209 | 356 | 16 | % | ||||||||||||||
| MRO | 695 | 390 | 305 | 78 | % | ||||||||||||||
| Miscellaneous | 176 | 118 | 58 | 49 | % | ||||||||||||||
| Other revenue | $ | 7,181 | $ | 4,920 | $ | 2,261 | 46 | % | |||||||||||
Delta Air Lines, Inc. | June 2026 Form 10-Q | 22 | ||||||
Item 2. MD&A - Results of Operations
Operating Expense
Six Months Ended June 30, | Increase (Decrease) | % Increase (Decrease) | |||||||||||||||
| (in millions) | 2026 | 2025 | |||||||||||||||
| Salaries and related costs | $ | 9,302 | $ | 8,485 | $ | 817 | 10 | % | |||||||||
| Aircraft fuel and related taxes | 6,851 | 4,869 | 1,982 | 41 | % | ||||||||||||
| Refinery expense | 3,745 | 2,203 | 1,542 | 70 | % | ||||||||||||
| Contracted services | 2,452 | 2,276 | 176 | 8 | % | ||||||||||||
| Landing fees and other rents | 1,891 | ||||||||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-05-27 | BELLEMARE ALAIN | EVP & Pres. - International | Sell | -25,000 | $81.44 | -$2,036,000 |
| 2026-05-27 | Ausband Allison C | EVP & Chief People Officer | Sell | -5,000 | $80.90 | -$404,500 |
| 2026-05-26 | Ausband Allison C | EVP & Chief People Officer | Sell | -5,000 | $79.00 | -$395,000 |
| 2026-05-22 | Ausband Allison C | EVP & Chief People Officer | Sell | -9,710 | $76.00 | -$737,960 |
| 2026-05-21 | Ausband Allison C | EVP & Chief People Officer | Sell | -5,000 | $73.50 | -$367,500 |
| 2026-05-07 | BELLEMARE ALAIN | EVP & Pres. - International | Sell | -20,621 | $72.75 | -$1,500,198 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-10-08 10-Q expected by 2026-11-07 (in 74 days)
- ~2027-02-11 10-K expected by 2027-03-01 (in 200 days)
- ~2027-04-07 10-Q expected by 2027-05-07 (in 255 days)
- ~2027-07-09 10-Q expected by 2027-08-08 (in 348 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-07-10 8-K Earnings Release; Financial Statements and Exhibits
- 2026-07-10 10-Q Quarterly Report
- 2026-07-10 S-3ASR S-3ASR
- 2026-06-12 8-K Material Agreement Entered; Material Financial Obligation
- 2026-04-24 DEF 14A Proxy Statement
- 2026-04-08 10-Q Quarterly Report
- 2026-04-08 8-K Earnings Release; Financial Statements and Exhibits
- 2026-03-05 8-K Officer/Director Change; Financial Statements and Exhibits
- 2026-02-13 8-K Officer/Director Change
- 2026-02-11 10-K Annual Report
- 2026-01-27 8-K Material Agreement Entered
- 2026-01-13 8-K Material Agreement Entered; Earnings Release; Financial Statements and Exhibits
- 2025-12-17 8-K Officer/Director Change; Financial Statements and Exhibits
- 2025-10-09 10-Q Quarterly Report
- 2025-10-09 8-K Earnings Release; Financial Statements and Exhibits