Delta Air Lines Inc. ( DAL ) reported first-quarter 2026 results on Wednesday that met its initial guidance, with revenue topping expectations on robust travel demand. Shares rose following the release.

Easing geopolitical tensions—after President Donald Trump signaled a potential de-escalation in the Middle East—also lifted sentiment, as lower fuel volatility and fewer supply disruptions would be a tailwind for airlines.

Earnings And Revenue Performance

The company posted first-quarter adjusted EPS of 64 cents, missing the 65 cents estimate, while GAAP revenue of $15.85 billion beat the $13.94 billion estimate.

GAAP results included a pre-tax loss of $214 million and a loss per share of 44 cents. Adjusted revenue rose 9.4% year over year to $14.2 billion, and EPS increased from 45 cents a year earlier.

“Delta’s results underscore the power of our brand and the durability of our financial foundation. We delivered earnings that were more than 40 percent higher than last year, even with a significant increase in fuel costs and operational disruptions across the industry,” said Ed Bastian, Delta’s chief executive officer.

“Demand remains strong, and we are taking actions to protect our margins and cash flow.  This includes meaningfully reducing capacity growth, with a downward bias until the fuel environment improves, and moving quickly to recapture higher fuel costs.”

Revenue Mix And Operational Metrics

Passenger revenue increased 7% to $12.3 billion, led by 14% growth in premium products. Other revenue rose 41% to $3.33 billion, driven by refinery, loyalty, and MRO growth, while cargo revenue increased 9%.

Premium and diversified revenue streams accounted for 62% of adjusted revenue and grew in the mid-teens.

Operationally, revenue passenger miles increased 1%, and capacity rose 1%, while passenger yield and PRASM each increased 6%.

Adjusted TRASM rose 8.2%, supported by domestic unit revenue growth of 6% and international growth of 5%.

Load factor was 81.6%, and main cabin capacity declined 3%, reflecting continued supply discipline and mix shift toward premium seating.

Margins, Cash Flow And Outlook

Adjusted operating margin improved to 4.6%, while adjusted pre-tax margin rose to 3.7%. Fuel remained a headwind, with adjusted fuel expense up 8% and fuel price up 7%, while non-fuel unit costs increased 6%.

Operating cash flow was $2.4 billion, and free cash flow was $1.2 billion. Cash totaled $5.05 billion, liquidity was $8.1 billion, and total debt and finance lease obligations were $14.16 billion, with adjusted net debt at $13.54 billion, below 2019 levels.

For the June quarter, Delta expects revenue growth in the low teens on flat capacity, EPS of $1.00 to $1.50, below the $2.28 estimate, and an operating margin of 6% to 8%.

The company expects about $1 billion in pre-tax profit despite a more than $2 billion increase in fuel expense, assuming an all-in fuel price of about $4.30 per gallon, including a $300 million refinery benefit.

“In the June quarter, we expect to lead the industry with $1 billion of profit.  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,” added Bastian.

Earnings Call Highlights

Delta CEO emphasized a focus on cost control and execution amid high fuel prices, prioritizing reliable operations, margin protection, and strong cash flow to stay on track with long-term targets.

At the same time, demand remains robust, with cash sales up double digits, signaling strong consumer appetite across all booking windows, regions, and product categories.

DAL Price Action: Delta Air Lines ( DAL ) shares were up 8.82% at $71.41 at the time of publication on Wednesday, according to Benzinga Pro data.