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 1,729 162 9 % Aircraft maintenance materials and outside repairs 1,397 1,237 160 13 % Regional carrier expense 1,322 1,264 58 5 % Passenger commissions and other selling expenses 1,316 1,224 92 8 % Depreciation and amortization 1,291 1,209 82 7 % Passenger service 918 912 6 1 % MRO expense 601 369 232 63 % Profit sharing 493 594 (101) (17) % Aircraft rent 311 274 37 14 % Other 1,356 1,372 (16) (1) % Total operating expense $ 33,246 $ 28,017 $ 5,229 19 % Unless otherwise discussed below, the changes in operating expense 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. Aircraft Fuel and Related Taxes. Aircraft fuel and related taxes increased $2.0 billion compared to the six months ended June 30, 2025 due to a 46% increase in our average jet fuel purchase price, mainly due to increases beginning in March 2026. MRO Expense. This represents expenses from our Delta TechOps third-party 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. Non-Operating Results Three Months Ended June 30, Favorable (Unfavorable) Six Months Ended June 30, Favorable (Unfavorable) (in millions) 2026 2025 2026 2025 Interest expense, net $ (144) $ (172) $ 28 $ (296) $ (350) $ 54 Gain/(loss) on investments, net 349 735 (386) (202) 696 (898) Loss on extinguishment of debt (1) (20) 19 (5) (20) 15 Miscellaneous, net (59) (71) 12 (68) (102) 34 Total non-operating income/(expense), net $ 145 $ 472 $ (327) $ (571) $ 224 $ (795) Interest expense, net. Interest expense, net includes interest expense and interest income. This decreased compared to the prior year primarily due to reduced interest expense resulting from our debt reduction initiatives. During 2025, we reduced our debt and finance lease obligations by approximately $2.0 billion. We have continued to pay down our debt during the six months ended June 30, 2026 with $2.1 billion of payments on debt and finance lease obligations, of which $1.3 billion was early repayments enabled by refinancings with lower interest rates. Gain/(loss) on investments, net. Changes in the valuation of investments accounted for at fair value are recorded in gain/(loss) on investments, net and are driven by changes in stock prices, foreign currency fluctuations and other valuation techniques for investments in certain companies, particularly those without publicly-traded shares. See Note 4 of the Notes to the Condensed Consolidated Financial Statements for additional information on our equity investments measured at fair value on a recurring basis. Delta Air Lines, Inc. | June 2026 Form 10-Q 23 Item 2. MD&A - Non-Operating Results Loss on extinguishment of debt. Loss on extinguishment of debt reflects the losses incurred in the early repayment of certain loans and notes. Miscellaneous, net. Miscellaneous, net primarily includes employee benefit plans net periodic benefit/(cost), charitable contributions, our share of our equity method investments' results, dividends received from our equity investees and foreign exchange gains/(losses). Income Taxes In certain periods, we may have adjustments to our net deferred tax liabilities as a result of changes in prior year estimates, the valuation allowance on mark-to-market adjustments on our equity investments, and tax laws enacted during the period, which will impact the effective tax rate for that period. Excluding mark-to-market adjustments on equity investments recognized in the June 2026 quarter, we project our annual effective tax rate for 2026 will be 23% to 25%. Refinery Segment The refinery operated by Monroe typically produces approximately 200,000 barrels of refined products (primarily, gasoline, diesel and jet fuel) per day and operates for the benefit of the airline segment by providing jet fuel to the airline. Non-jet fuel production is sold to or exchanged with third parties, which enables us to procure additional jet fuel for consumption in our airline operations. Third party refinery sales increased in 2026 compared to the three and six months ended June 30, 2025 due to higher market prices for refined products, and a shift in mix to more sales than exchanges as exchange agreements for non-jet fuel products ended during the second half of 2025. The refinery generated operating income of $351 million in the June 2026 quarter compared to an operating loss of $10 million in the June 2025 quarter. The increase in operating income in the June 2026 quarter primarily results from higher industry pricing and refining margins, partially offset by the negative impact from a temporary outage that halted production at the refinery beginning in the middle of June 2026. For more information regarding the refinery's results, see Note 9 of the Notes to the Condensed Consolidated Financial Statements. Refinery segment financial information Three Months Ended June 30, Increase (Decrease) Six Months Ended June 30, Increase (Decrease) (in millions) 2026 2025 2026 2025 Third party refinery sales $ 2,091 $ 1,141 $ 950 $ 3,745 $ 2,203 $ 1,542 Sales to airline segment and other 520 579 (59) 904 1,215 (311) Operating revenue $ 2,611 $ 1,720 $ 891 $ 4,649 $ 3,418 $ 1,231 Operating income/(loss) $ 351 $ (10) $ 361 $ 311 $ (10) $ 321 Delta Air Lines, Inc. | June 2026 Form 10-Q 24 Item 2. MD&A - Operating Statistics Operating Statistics Three Months Ended June 30, % Increase (Decrease) Six Months Ended June 30, % Increase (Decrease) Consolidated(1) 2026 2025 2026 2025 Revenue passenger miles (in millions) ("RPM") 66,767 66,417 1 % 123,236 122,095 1 % Available seat miles (in millions) ("ASM") 78,694 77,645 1 % 147,857 146,045 1 % Passenger mile yield 23.38 ¢ 20.88 ¢ 12 % 22.65 ¢ 20.76 ¢ 9 % Passenger revenue per available seat mile ("PRASM") 19.83 ¢ 17.86 ¢ 11 % 18.88 ¢ 17.36 ¢ 9 % Total revenue per available seat mile ("TRASM") 25.11 ¢ 21.44 ¢ 17 % 24.08 ¢ 21.01 ¢ 15 % TRASM, adjusted(2) 22.45 ¢ 19.97 ¢ 12.4 % 21.55 ¢ 19.50 ¢ 10 % Cost per available seat mile ("CASM") 22.74 ¢ 18.73 ¢ 21 % 22.48 ¢ 19.18 ¢ 17 % CASM-Ex(2) 14.09 ¢ 13.20 ¢ 6.8 % 14.58 ¢ 13.68 ¢ 7 % Passenger load factor 84.8 % 85.5 % (1) pt 83.3 % 83.6 % — pts Fuel gallons consumed (in millions) 1,122 1,112 1 % 2,110 2,088 1 % Average price per fuel gallon(3) $ 3.66 $ 2.21 66 % $ 3.25 $ 2.33 39 % Average price per fuel gallon, adjusted(2)(3) $ 3.93 $ 2.25 75 % $ 3.32 $ 2.34 42 % (1)Includes the operations of our regional carriers under capacity purchase agreements. (2)Non-GAAP financial measures defined and reconciled to TRASM, CASM and average fuel price per gallon, respectively, in "Supplemental Information" below. (3)Includes the impact of fuel hedge activity and refinery segment results. Delta Air Lines, Inc. | June 2026 Form 10-Q 25 Item 2. MD&A - Fleet Information Fleet Information Our operating aircraft fleet, purchase commitments and options at June 30, 2026 are summarized in the following table. Mainline aircraft information by fleet type Current Fleet(1) Commitments Fleet Type Owned Finance Lease Operating Lease Total Average Age (Years) Purchase Options A220-100 45 — — 45 6.5 A220-300 42 — — 42 2.7 58 A319-100 57 — — 57 24.3 A320-200 43 — — 43 29.2 A321-200 77 8 42 127 7.5 A321-200neo 99 — — 99 2.2 90 36 A330-200 11 — — 11 21.2 A330-300 28 — 3 31 17.4 A330-900neo 32 2 5 39 3.5 16 15 A350-900 32 2 7 41 5.6 18 5 A350-1000 — — — — — 20 10 B-717-200 80 — — 80 24.8 B-737-800 73 4 — 77 24.8 B-737-900ER 125 8 30 163 10.5 B-737-10 — — — — — 100 30 B-757-200 75 — — 75 28.2 B-757-300 16 — — 16 23.4 B-767-300ER 37 — — 37 29.5 B-767-400ER 21 — — 21 25.5 B-787-10 — — — — — 30 30 Total 893 24 87 1,004 15.0 332 126 (1)Excludes certain aircraft we own or lease that are operated by regional carriers on our behalf shown in the table below. The following table summarizes the aircraft operated by regional carriers on our behalf at June 30, 2026. Regional aircraft information by fleet type and carrier Fleet Type(1) Carrier CRJ-700 CRJ-900 Embraer 170 Embraer 175 Total Endeavor Air, Inc.(2) 18 127 — — 145 SkyWest Airlines, Inc. 2 34 — 87 123 Republic Airways Inc. — — 11 46 57 Total 20 161 11 133 325 (1)We own 202 and have operating leases for three of these regional aircraft. The remainder are owned or leased by SkyWest Airlines, Inc. or Republic Airways Inc. (2)Endeavor Air, Inc. is a wholly owned subsidiary of Delta. Delta Air Lines, Inc. | June 2026 Form 10-Q 26 Item 2. MD&A - Financial Condition and Liquidity Financial Condition and Liquidity As of June 30, 2026, we had $7.7 billion in cash, cash equivalents, short-term investments and aggregate undrawn principal amount available under our revolving credit facilities. We expect to meet our liquidity needs for the next twelve months with cash and cash equivalents and cash flows from operations. We expect to meet our long-term liquidity needs with cash flows from operations and financing arrangements. Undrawn Lines of Credit. As of June 30, 2026, we had approximately $3.1 billion undrawn and available under our revolving credit facilities. Sources and Uses of Liquidity Operating Activities We generated cash flows from operations of $4.0 billion and $4.2 billion in the six months ended June 30, 2026 and 2025, respectively. We expect to continue generating positive cash flows from operations during the remainder of 2026. Our operating cash flow is impacted by the following factors: Seasonality of Advance Ticket Sales. We sell tickets for air travel in advance of the customer's travel date. When we receive a cash payment at the time of sale, we record the cash received on advance sales as deferred revenue in air traffic liability. The air traffic liability typically increases during the winter and spring months as advance ticket sales grow prior to the summer peak travel season and decreases during the summer and fall months. Sale of Miles to Participating Companies. Customers earn miles based on their spending with participating companies such as credit card, retail, ridesharing, car rental and hotel companies with which we have marketing agreements to sell miles. Payments are typically due to us monthly based on the volume of miles sold during the period. Our most significant contract to sell miles relates to our co-brand credit card relationship with American Express. Remuneration from American Express was $4.5 billion in the six months ended June 30, 2026, an increase of 13% compared to the prior year period. See Note 2 of the Notes to the Condensed Consolidated Financial Statements for further information regarding the cash sales from marketing agreements. Fuel. Fuel expense represented approximately 21% and 17% of our total operating expense for the six months ended June 30, 2026 and 2025, respectively. The market price for jet fuel is dynamic, which can impact the comparability of our periodic cash flows from operations. Fuel consumption was higher during the three and six months ended June 30, 2026 compared to the prior year period due to the 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. Profit Sharing. We paid $1.3 billion in profit sharing payments in February 2026 related to our 2025 pre-tax profit in recognition of our employees' contributions toward achieving the year's financial results. Our broad-based employee profit sharing program provides that we will pay 10% of that profit 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. In determining the amount of profit sharing, the program defines profit as pre-tax profit adjusted for profit sharing and certain other items. During the six months ended June 30, 2026, we accrued $493 million in profit sharing expense based on the year-to-date performance and current expectations for 2026 profit. Income Taxes. During 2025, we utilized substantially all of our net operating loss carryforwards that were generated in 2017 and earlier and, due to the limitations on net operating losses generated after 2017, began making federal income tax cash payments. We expect income tax cash payments for the full year to increase in 2026 based on our projected financial results. As of December 31, 2025, we had approximately $2.4 billion of U.S. federal pre-tax net operating loss carryforwards which we expect to utilize a majority of during 2026. These net operating loss carryforwards were primarily generated in 2020 and do not expire. Delta Air Lines, Inc. | June 2026 Form 10-Q 27 Item 2. MD&A - Financial Condition and Liquidity Investing Activities Capital Expenditures. Our capital expenditures were $2.7 billion and $2.4 billion for the six months ended June 30, 2026 and 2025, respectively. We have committed to future aircraft purchases and have obtained, but are under no obligation to use, long-term financing commitments for a substantial portion of the purchase price of the aircraft. Our 2026 capital spend is expected to be over $5 billion and will be primarily for aircraft, including deliveries and advance deposit payments, as well as fleet modifications and technology enhancements. In the March 2026 quarter, we entered into a definitive agreement with The Boeing Company to acquire 30 Boeing 787-10 aircraft, with an option to purchase up to an additional 30 of the same aircraft. Deliveries of the B-787-10 aircraft are scheduled to begin in 2031. In the March 2026 quarter, we entered into a definitive agreement with Airbus S.A.S. to purchase 16 Airbus A330-900 aircraft and 15 Airbus A350-900 aircraft, with an option to purchase up to an additional 20 widebody aircraft. Deliveries of the aircraft are scheduled to begin in 2029. In the March 2026 quarter, we exercised options for 34 Airbus A321neo aircraft. Deliveries from this order are scheduled to begin in 2029. In addition to this order, we maintain options to purchase 36 Airbus A321neo aircraft. Wheels Up. During the six months ended June 30, 2026, Wheels Up drew under the terms of the revolving working capital credit facility that was entered into in 2023, and $36 million was outstanding as of June 30, 2026. This facility is required to be repaid by September 20, 2028. In May 2026, Wheels Up entered into a new $100 million term loan credit agreement, of which we contributed $57 million and other shareholders contributed the remainder. The scheduled maturity date of the term loan is May 29, 2029. This new financing reflects our continued partnership with Wheels Up and provides a stronger financial foundation to support the company’s accelerated fleet and product transformation initiatives, ongoing operational improvements, and enhanced product and service offerings. Financing Activities Debt and Finance Leases. In the six months ended June 30, 2026, we had cash outflows of $2.1 billion related to repayments of our debt and finance lease obligations. We continue to seek opportunities to pre-pay our debt, in addition to periodic amortization and scheduled maturities, and refinance higher cost debt. In January 2026, we entered into a $1.25 billion term loan issued by a group of lenders due December 2026. The proceeds of the term loan were used to repay $957 million of Payroll Support Program loans due 2031 and for general corporate purposes. In April 2026, we and our indirect wholly-owned subsidiary SkyMiles IP Ltd. entered into an amendment to the SkyMiles term loan credit and guaranty agreement (the "SkyMiles Credit Facility") with Barclays Bank PLC as lender and administrative agent. This amendment refinanced the existing term loans with the proceeds of replacement term loans bearing interest at a variable rate equal to an adjusted term SOFR, plus a margin of 1.25% per annum, and added a prepayment premium of 1.00% payable in connection with a Repricing Event (as defined in the amended SkyMiles Credit Facility) occurring within six months following April 23, 2026. In June 2026, we entered into a new $2.650 billion revolving credit facility with JPMorgan Chase Bank, N.A. as administrative agent and the lenders party thereto to refinance and replace the existing Corporate Revolving Credit Facility (the "2026 Corporate Revolving Credit Facility"). The 2026 Corporate Revolving Credit Facility effectively extends the maturity of the $1.325 billion three-year tranche to 2029 and the $1.325 billion five-year tranche to 2031. Borrowings under the three-year and five-year tranches bear interest at a variable rate equal to an adjusted term SOFR, or another index rate, in each case plus a specified margin. See Note 5 of the Notes to the Condensed Consolidated Financial Statements for further information on our debt agreements. Capital Return to Shareholders. On April 23, 2026, the Board of Directors approved a quarterly dividend of $0.1875 per share which we paid on June 4, 2026 for total cash dividends of $123 million. Total cash dividends for the six months ended June 30, 2026 were $252 million. Delta Air Lines, Inc. | June 2026 Form 10-Q 28 Item 2. MD&A - Financial Condition and Liquidity On June 18, 2026, the Board of Directors approved a quarterly dividend of $0.2150 per share to shareholders of record as of July 9, 2026, which we will pay on July 30, 2026. In the June 2025 quarter, the Board of Directors authorized a $1.0 billion opportunistic share repurchase program open through June 30, 2028. No shares have been repurchased under this program through June 30, 2026. Covenants. We were in compliance with the covenants in our debt agreements at June 30, 2026. Critical Accounting Estimates There have been no material changes in our Critical Accounting Estimates from the information provided in the "Critical Accounting Estimates" section of "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Form 10-K. Delta Air Lines, Inc. | June 2026 Form 10-Q 29 Item 2. MD&A - Supplemental Information Supplemental Information We sometimes use information (non-GAAP financial measures) that is derived from the Condensed Consolidated Financial Statements, but that is not presented in accordance with GAAP. Under the U.S. Securities and Exchange Commission rules, non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for or superior to GAAP results. Included below are reconciliations of non-GAAP measures used within this Form 10-Q to the most directly comparable GAAP financial measures. Reconciliations below may not calculate exactly due to rounding. These reconciliations include certain adjustments to GAAP measures to provide comparability between the reported periods, if applicable, and for the reasons indicated below: •Third-party refinery sales. Refinery sales to third parties, and related expenses, are not related to our airline segment. Excluding these sales therefore provides a more meaningful comparison of our airline operations to the rest of the airline industry. •MTM adjustments and settlements on hedges. Mark-to-market ("MTM") adjustments are defined as fair value changes recorded in periods other than the settlement period. Such fair value changes are not necessarily indicative of the actual settlement value of the underlying hedge in the contract settlement period, and therefore we remove this impact to allow investors to better understand and analyze our core performance. Settlements represent cash received or paid on hedge contracts closed (i.e., settled) during the applicable period. With respect to hedges related to Monroe's inventory, settlements often occur before the related refinery inventory is sold. Beginning in 2026, settlement gains and losses related to Monroe's inventory that remains on-hand at period end are excluded from our adjusted results. These settlement gains and losses will be reflected in adjusted results during the period the inventory is sold. This change was made to match the timing of expense and revenue recognition and we have similarly adjusted the presentation of reconciliations for prior periods included here. •Aircraft fuel and related taxes. The volatility in fuel prices impacts the comparability of year-over-year financial performance. The adjustment for aircraft fuel and related taxes allows investors to better understand and analyze our non-fuel costs and year-over-year financial performance. •MRO expense. We adjust for MRO expenses because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. •Profit sharing. We adjust for profit sharing because this adjustment allows investors to better understand and analyze our recurring cost performance and provides a more meaningful comparison of our core operating costs to the airline industry. Total revenue, adjusted reconciliation Three Months Ended June 30, (in millions) 2026 2025 Total revenue $ 19,757 $ 16,648 Adjusted for: Third-party refinery sales (2,091) (1,141) Total revenue, adjusted $ 17,666 $ 15,507 Delta Air Lines, Inc. | June 2026 Form 10-Q 30 Item 2. MD&A - Supplemental Information Operating expense, adjusted reconciliation Three Months Ended June 30, (in millions) 2026 2025 Operating expense $ 17,893 $ 14,546 Adjusted for: Third-party refinery sales (2,091) (1,141) MTM adjustments and settlements on hedges 301 39 Operating expense, adjusted $ 16,102 $ 13,443 Fuel expense, adjusted reconciliation Average Price Per Gallon Three Months Ended June 30, Three Months Ended June 30, (in millions, except per gallon data) 2026 2025 2026 2025 Total fuel expense $ 4,109 $ 2,458 $ 3.66 $ 2.21 Adjusted for: MTM adjustments and settlements on hedges 301 39 0.27 0.04 Total fuel expense, adjusted $ 4,410 $ 2,497 $ 3.93 $ 2.25 Average Price Per Gallon Six Months Ended June 30, Six Months Ended June 30, (in millions, except per gallon data) 2026 2025 2026 2025 Total fuel expense $ 6,851 $ 4,869 $ 3.25 $ 2.33 Adjusted for: MTM adjustments and settlements on hedges 151 24 0.07 0.01 Total fuel expense, adjusted $ 7,001 $ 4,892 $ 3.32 $ 2.34 TRASM, adjusted reconciliation Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 TRASM (cents) 25.11 ¢ 21.44 ¢ 24.08 ¢ 21.01 ¢ Adjusted for: Third-party refinery sales (2.66) (1.47) (2.53) (1.51) TRASM, adjusted 22.45 ¢ 19.97 ¢ 21.55 ¢ 19.50 ¢ CASM-Ex reconciliation Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 CASM (cents) 22.74 ¢ 18.73 ¢ 22.48 ¢ 19.18 ¢ Adjusted for: Aircraft fuel and related taxes (5.22) (3.17) (4.63) (3.33) Third-party refinery sales (2.66) (1.47) (2.53) (1.51) MRO expense (0.35) (0.29) (0.41) (0.25) Profit sharing (0.42) (0.61) (0.33) (0.41) CASM-Ex 14.09 ¢ 13.20 ¢ 14.58 ¢ 13.68 ¢ Delta Air Lines, Inc. | June 2026 Form 10-Q 31 Item 2. MD&A - Supplemental Information Free Cash Flow The following table shows a reconciliation of net cash provided by operating and used in investing activities (GAAP measures) to free cash flow (a non-GAAP financial measure). We present free cash flow because management believes this metric is helpful to investors to evaluate the company's ability to generate cash that is available for use for debt service or general corporate initiatives. Adjustments include: •Pension plan contributions. Cash flows related to pension funding are included in our GAAP operating activities. We adjust to exclude these contributions to allow investors to understand the cash flows related to our core operations. •Net cash flows related to certain airport construction projects and other. Cash flows related to certain airport construction projects are included in our GAAP operating activities and capital expenditures. We have adjusted for these items because management believes investors should be informed that a portion of these capital expenditures from airport construction projects are either reimbursed by a third party or funded with restricted cash specific to these projects. •Strategic investments and related. Certain cash flows related to our investments in and related transactions with other airlines and associated companies are included in our GAAP investing activities. We adjust for this activity because it provides a more meaningful comparison to our airline industry peers. Free cash flow reconciliation (in millions) Three Months Ended June 30, 2026 Net cash provided by operating activities $ 1,596 Net cash used in investing activities (1,512) Adjusted for: Pension plan contributions 4 Net cash flows related to certain airport construction projects and other 70 Strategic investments and related 51 Free cash flow $ 209 Delta Air Lines, Inc. | June 2026 Form 10-Q 32 Item 3. Market Risk