01—Abstract
Summary
Summary of the 10-Q filed July 10, 2026. Cited figures are marked; the original filing is the authoritative source.
Delta Air Lines, Inc. reported operating income of $1.864 billiona for the three months ended June 30, 2026, down $238 million from the prior-year quarter, on total operating revenue of $19.757 billion (up from $16.648 billion).
Net income was $1.604 billionb, or $2.44 diluted EPS, versus $2.130 billion and $3.27 a year earlier. Management attributes the revenue increase primarily to higher pricing in response to a rapid increase in fuel costs, broad-based demand strength, and higher refinery sales to third parties. Total operating expense rose to $17.893 billion, driven by aircraft fuel and related taxes ($4.109 billion, up from $2.458 billion; average jet fuel price up 80% per the filing) and refinery expense.
For the six months, net income was $1.315 billionc and diluted EPS was $2.00. Liquidity and cash generation remained solid. Operating cash flow was $4.027 billion for the six months ended June 30, 2026, versus $4.235 billion a year earlier.
Capital expenditures were $2.7 billiond for the six months, and management expects 2026 capital spend to exceed $5 billion. Cash, cash equivalents, short-term investments and undrawn revolver capacity totaled $7.7 billion at quarter-end, and total debt was $12.905 billion, down from $13.308 billion at December 31, 2025. The company refinanced its corporate revolver with a new $2.650 billion facility in June 2026 and reported free cash flow of $209 million for the June 2026 quarter as a non-GAAP measure.
The filing also highlights a refinery outage beginning in mid-June 2026 that partly offset refinery operating income of $351 million, and a declared quarterly dividend of $0.2150 per share payable July 30, 2026. No shares have been repurchased under the $1.0 billion program authorized in the June 2025 quarter. Investors should weigh the strong revenue growth against the sharp rise in fuel and operating costs that compressed margins relative to the prior year.
02—Key points
Key Highlights
- Total operating revenue rose to $19.757 billion in the June 2026 quarter from $16.648 billion, an increase of $3.109 billion, with passenger revenue up $1.740 billion on higher pricing.
- Operating income was $1.864 billion, down $238 million from $2.102 billion in the June 2025 quarter, as operating expense rose $3.347 billion to $17.893 billion.
- Aircraft fuel and related taxes increased to $4.109 billion from $2.458 billion, with average jet fuel purchase price up 80% per the filing.
- Net income was $1.604 billion ($2.44 diluted EPS) for the June 2026 quarter, compared with $2.130 billion ($3.27 diluted EPS) a year earlier, with non-operating income falling to $145 million from $472 million.
- Free cash flow was $209 million for the June 2026 quarter (non-GAAP), and liquidity totaled $7.7 billion at June 30, 2026.
- Total debt declined to $12.905 billion from $13.308 billion at December 31, 2025, following $2.1 billion of debt and finance lease payments in the six months ended June 30, 2026.
- Aircraft purchase commitments totaled approximately $27.6 billion at June 30, 2026, with new orders placed in the March 2026 quarter for Boeing 787-10 and Airbus widebody and A321neo aircraft.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 10, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $19.76B$16.65B | +18.7% |
| Operating Expenses | $17.89B$14.55B | +23.0% |
| Operating Income | $1.86B$2.10B | −11.3% |
| Net Income | $1.60B$2.13B | −24.7% |
| EPS (Basic) | $2.45$3.28 | −25.3% |
| EPS (Diluted) | $2.44$3.27 | −25.4% |
| Shares Outstanding (Basic) | 654.00M649.00M | +0.8% |
| Shares Outstanding (Diluted) | 658.00M652.00M | +0.9% |
05—Questions
Frequently Asked Questions
Why did operating income decline despite higher revenue?
Total operating revenue grew $3.109 billion, but total operating expense grew $3.347 billion. The filing attributes the expense increase primarily to higher aircraft fuel costs, expenses tied to third-party refinery sales, and salaries and related costs. Aircraft fuel and related taxes rose $1.651 billion in the quarter, with an 80% increase in average jet fuel purchase price.
How did the refinery segment perform?
The refinery generated operating income of $351 million in the June 2026 quarter, compared with an operating loss of $10 million in the June 2025 quarter. The filing attributes the improvement to higher industry pricing and refining margins, partially offset by a temporary outage that halted production beginning in the middle of June 2026.
What is the company's liquidity and debt position?
As of June 30, 2026, liquidity of cash, cash equivalents, short-term investments and undrawn revolving credit capacity was $7.7 billion, including approximately $3.1 billion undrawn under revolving facilities. Total debt was $12.905 billion, down from $13.308 billion at December 31, 2025. The company stated it was in compliance with its debt covenants.
What are the company's capital return plans?
The Board approved a quarterly dividend of $0.2150 per share on June 18, 2026, payable July 30, 2026 to shareholders of record as of July 9, 2026. Cash dividends paid were $252 million for the six months ended June 30, 2026. A $1.0 billion opportunistic share repurchase program runs through June 30, 2028, but no shares have been repurchased under it through June 30, 2026.
What is the outlook for fuel costs and capacity?
The filing expects fuel consumption for the remainder of 2026 to 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. Management also expects 2026 capital spending to be over $5 billion, primarily for aircraft.
06—Continue