Why did Delta report a GAAP loss while its adjusted results show a profit?

GAAP pre-tax results were a $214 million loss, including a $550 million loss on investments, net, driven by mark-to-market adjustments. Delta's non-GAAP results remove this item along with MTM adjustments and settlements on hedges ($151 million), third-party refinery sales, the loss on debt extinguishment and a realized gain on investment sales, producing adjusted pre-tax income of $532 million.

What is Delta guiding to for the June 2026 quarter?

Delta expects total revenue up low-teens year over year on flat capacity, an operating margin of 6% to 8%, and EPS of $1.00 to $1.50. It expects pre-tax profit of around $1 billion, based on fuel at the forward curve as of April 2, 2026, which implies a more than $2 billion increase in fuel expense.

How is Delta responding to higher fuel costs?

Management said it is meaningfully reducing capacity growth, with a downward bias until the fuel environment improves, and moving quickly to recapture higher fuel costs. Delta also cited a refinery benefit of approximately $300 million for the June quarter at current prices, through its Monroe refinery.

How strong is Delta's balance sheet and liquidity?

Adjusted net debt was $13.5 billion at March 31, 2026, down $760 million from year-end 2025 and below 2019 levels. Total liquidity was $8.1 billion, including $3.1 billion of undrawn revolver capacity. The weighted average interest rate was 4.6%, with 86% fixed-rate debt. Management cited investment-grade ratings at all three major credit rating agencies.

What drove the March quarter revenue performance?

Adjusted total revenue rose 9.4% to a record $14.2 billion, led by premium, corporate and loyalty. Domestic unit revenue grew 6% and international unit revenue grew 5%. Main cabin unit revenue grew for the first full quarter since the end of 2024, while main cabin capacity fell 3%. Corporate sales rose by double digits, and MRO revenue increased by more than $200 million.

DAL 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 8, 2026. Cited figures are marked; the original filing is the authoritative source.

Delta Air Lines, Inc. reported March quarter 2026 results in an 8-K furnished under Item 2.02, attaching a press release.

On a GAAP basis, operating revenue was $15.9 billion^a, operating income was $501 million (3.2% margin), and the company posted a pre-tax loss of $214 million and a loss of $0.44 per share. On a non-GAAP basis, operating revenue was $14.2 billion, operating income was $652 million (4.6% margin), pre-tax income was $532 million, and earnings were $0.64 per share. Operating cash flow was $2.4 billion.

Management said March quarter total revenue rose 9.4% year over year to a record $14.2 billion^b, led by premium, corporate and loyalty revenue, and that adjusted non-fuel unit costs (CASM-Ex) rose 6%. For the June 2026 quarter, Delta guided to total revenue up low-teens year over year on flat capacity, an operating margin of 6% to 8%, and EPS of $1.00 to $1.50. The company expects pre-tax profit of around $1 billion, which it says reflects a more than $2 billion increase in fuel expense at the forward curve as of April 2, 2026.

The guidance assumes an all-in fuel price of about $4.30^c per gallon and a refinery benefit of approximately $300 million. Balance sheet metrics were stronger: adjusted net debt fell to $13.5 billion, a $760 million reduction from year-end 2025 and below 2019 levels, and liquidity was $8.1 billion including $3.1 billion of undrawn revolver capacity. Management highlighted investment-grade ratings at all three major agencies and a free cash flow figure of $1.2 billion for the quarter.

02—Key points

Key Highlights

March quarter GAAP pre-tax loss of $214 million and diluted loss of $0.44 per share, versus pre-tax income of $320 million and EPS of $0.37 a year earlier.
Non-GAAP March quarter EPS of $0.64, up 44% from $0.45, with operating income of $652 million and a 4.6% adjusted operating margin.
Record March quarter total revenue of $14.2 billion (adjusted), up 9.4% year over year; adjusted TRASM rose 8.2%.
June quarter guidance: total revenue up low-teens on flat capacity, operating margin of 6% to 8%, and EPS of $1.00 to $1.50.
Fuel expected to rise by more than $2 billion in the June quarter at the forward curve, with an all-in fuel price of approximately $4.30 per gallon; refinery benefit of about $300 million.
Adjusted net debt reduced by $760 million from year-end 2025 to $13.5 billion, below 2019 levels; liquidity of $8.1 billion.
Premium revenue grew 14% and loyalty and related revenue grew 13%; American Express remuneration exceeded $2 billion, up 10%.

03—Questions

Frequently Asked Questions

Why did Delta report a GAAP loss while its adjusted results show a profit?
GAAP pre-tax results were a $214 million loss, including a $550 million loss on investments, net, driven by mark-to-market adjustments. Delta's non-GAAP results remove this item along with MTM adjustments and settlements on hedges ($151 million), third-party refinery sales, the loss on debt extinguishment and a realized gain on investment sales, producing adjusted pre-tax income of $532 million.
What is Delta guiding to for the June 2026 quarter?
Delta expects total revenue up low-teens year over year on flat capacity, an operating margin of 6% to 8%, and EPS of $1.00 to $1.50. It expects pre-tax profit of around $1 billion, based on fuel at the forward curve as of April 2, 2026, which implies a more than $2 billion increase in fuel expense.
How is Delta responding to higher fuel costs?
Management said it is meaningfully reducing capacity growth, with a downward bias until the fuel environment improves, and moving quickly to recapture higher fuel costs. Delta also cited a refinery benefit of approximately $300 million for the June quarter at current prices, through its Monroe refinery.
How strong is Delta's balance sheet and liquidity?
Adjusted net debt was $13.5 billion at March 31, 2026, down $760 million from year-end 2025 and below 2019 levels. Total liquidity was $8.1 billion, including $3.1 billion of undrawn revolver capacity. The weighted average interest rate was 4.6%, with 86% fixed-rate debt. Management cited investment-grade ratings at all three major credit rating agencies.
What drove the March quarter revenue performance?
Adjusted total revenue rose 9.4% to a record $14.2 billion, led by premium, corporate and loyalty. Domestic unit revenue grew 6% and international unit revenue grew 5%. Main cabin unit revenue grew for the first full quarter since the end of 2024, while main cabin capacity fell 3%. Corporate sales rose by double digits, and MRO revenue increased by more than $200 million.

04—Continue

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