Catenaa, Wednesday, April 08, 2026- Delta Air Lines’ stock surged as much as 7% on Wednesday after it posted upbeat first-quarter results, saying growth in the premium business will continue to deflect major concerns.
For the quarter, Delta posted Q1 adjusted revenue of $14.2 billion versus $14.11 billion expected, per Bloomberg consensus. The results were up 9.4% compared to a year ago, slightly above the new guidance issued in March, which saw approximately 7% to 9% growth.
Delta’s adjusted earnings per share (EPS) came in at $0.64 versus the $0.57 expected, with operating income of $652 million and an operating margin of 4.6%
Fuel expenses in the first quarter came in at $2.591 billion, up 8% compared to a year ago.
Looking ahead, Delta projects Q2 revenue to grow in the “low teens,” with operating margin in the 6% to 8% range and adjusted EPS of $1 to $1.50.
Delta also projects pretax profit of “around $1 billion,” despite a more than $2 billion increase in fuel expenses seen in Q2.
Delta said this projection assumes fuel at a “forward curve as of April 2nd” and includes a refinery benefit of approximately $300 million.
Delta said it is too early to update full-year 2026 projections. At the end of the fourth quarter, Delta saw full-year adjusted EPS of $6.50 to $7.50, representing a 20% year-over-year jump at the midpoint, with free cash flow in the range of $3 billion to $4 billion.
“We’re not walking it back,” Delta CEO Ed Bastian said on a press roundtable with reporters, just that there would be no updates to it.
“The question of not just the day of the month, is going to be how we navigate this higher fuel environment brought on by the Iranian conflict,” he said, adding that jet fuel costs have more than doubled over the past 30 days.
Bastian noted that demand remains strong, and Delta is taking actions to protect margins and cash flow. The airline has reduced capacity growth and cut flights in low-traffic markets as well as midweek flights, raised prices and bag fees, and is moving quickly to “recapture higher fuel costs.”
Bastian said Delta benefits from owning the Monroe refinery outside of Philadelphia, a major advantage given that it and other airlines no longer use fuel hedges.
“And while the recent fuel spike is currently impacting earnings, I’m confident this environment ultimately reinforces Delta’s leadership and accelerates long-term earnings power,” he said.
By owning its refinery, Delta actually benefits when the “crack spread”, the difference between the price of crude oil and refined products, widens, because it can make refined products like jet fuel on its own.
Outside of the refinery benefits, Delta’s growth was once again driven by increased business from its premium-focused, higher-net-income clients.
Delta said Premium revenue grew 14% compared to a year ago, with loyalty and related revenue climbing 13% as well. American Express remuneration came in at over $2 billion, up 10% over the prior year.
Last year, American Express (card remuneration, a huge business for Delta and premium airlines, grew 11% ito $8.2 billion, driven by co-branded spending on cards like the Delta Platinum Reserve. Bastian said he expected “high-single-digit growth” in 2026.
