One of the world's largest airlines, Delta flies people across six continents and serves millions of travelers through its SkyMiles loyalty program, Delta One and other premium cabins, plus sidelines like Delta TechOps and Delta Vacations. It began in 1925 as Huff Daland Dusters, the world's first aerial crop-dusting company, spraying Southern cotton fields to fight the boll weevil. The name "Delta" comes not from the Greek letter but from the Mississippi Delta region it first served.
Delta Q2 FY2026 revenue rose 19% to $19.8B while operating income fell 11% to $1.9B on fuel costs
Fuel costs reshaped the quarter's profit math. rose 19% to $19.8B and was $2.44, but fell 11% to $1.9B as a 67% increase in aircraft fuel expense outpaced the top line. The company grew revenue across every while profitability compressed on non-fuel and fuel cost inflation.
Key takeaways
Total operating expense climbed 23% to $17.9B, mainly from a 67% increase in aircraft fuel costs as the average jet fuel price rose 80%, which drove down 11% to $1.9B despite growth.
rose 19% to $19.8B, with passenger revenue up 13% to $15.6B (domestic up 15%, international up 8%) and other revenue up 50% to $3.9B on an 83% increase in third-party refinery sales to $2.1B plus 19% loyalty revenue growth.
was $1,604M, down 25% , and was $2.44, down 25% from $3.27 a year earlier, as non- dropped to $145M from $472M on lower on equity investments.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 operating income fell $238M to $1.9B as a 23% jump in operating expenses, led by fuel, outpaced 19% revenue growth.
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Total rose 19% to $19.8B, driven by higher pricing amid surging fuel costs and broad demand strength across premium, main, corporate, and loyalty segments.
was $209M after $1.5B in , down from $648M a year earlier, with at $1.6B and at $7.7B at June 30, 2026.
fell 19% to $10.1B and rose 25% to $21.8B versus a year earlier, continuing the debt-reduction trajectory.
What changed
Q2 FY2026 refinery operating result: after the $39M Q1 loss, the filing discloses third-party refinery sales rose 83% to $2.1B within other , but states no standalone segment operating figure for Q2.
Non-operating expense and mark-to-market: Q1 flagged the $510M widening of mark-to-market losses; in Q2 non- dropped to $145M from $472M on lower gains, a smaller swing than Q1's loss expansion.
CASM-Ex and salary trend: Q1 flagged 2026 near $5.5B and salary costs; Q2 operating expense rose 23% with fuel the lead driver and refinery expense tied to third-party sales, but no CASM-Ex figure was disclosed this quarter.
against ~$5.5B : Q2 free cash flow was $209M after $1.5B capex, down from $648M a year earlier, consistent with the flagged capex pressure on quarterly cash generation.
Versus Q1 FY2026: rose 24.6% from $15.9B to $19.8B and rose 272% from $501M to $1,864M, a sequential rebound from the Q1 investment-loss-driven net loss.
What to watch
Q3 FY2026 refinery operating result and standalone fuel benefit after Q2 disclosed only embedded third-party sales of $2.1B and no segment figure
Q3 FY2026 non- and mark-to-market investment gains after the drop to $145M from $472M
Q3 FY2026 aircraft fuel expense and as the 80% jet fuel price increase flows through
in Q3 against the ~$5.5B 2026 plan after Q2's $209M
Passenger increased 13% to $15.6B, with domestic up 15% on 2% capacity growth and international up 8%, led by Atlantic leisure demand and Pacific growth via the Korean Air joint venture.
Other surged 50% to $3.9B, primarily from an 83% jump in third-party refinery sales to $2.1B, plus 19% growth in loyalty revenue from higher card spend and new acquisitions.
Total operating expense climbed 23% to $17.9B, mainly due to a 67% increase in aircraft fuel costs (average jet fuel price up 80%) and higher refinery expense tied to third-party sales.
Non- dropped to $145M from $472M, largely due to lower on equity investments.
Liquidity stood at $7.7B as of June 30, 2026; was $1.6B for the quarter, and was $209M after $1.5B in .
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in market risk from the information provided in "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our Form 10-K.
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There have been no material changes in market risk from the information provided in "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" in our Form 10-K.
"Item 3. Legal Proceedings" of our Form 10-K includes a discussion of our legal proceedings. There have been no material changes from the legal proceedings described in our Form 10-K.
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"Item 3. Legal Proceedings" of our Form 10-K includes a discussion of our legal proceedings. There have been no material changes from the legal proceedings described in our Form 10-K.
“Item 1A. Risk Factors” of our Form 10-K includes a discussion of our known material risk factors, other than risks that could apply to any issuer or offering. There have been no material changes from the risk factors described in our Form 10-K.
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“Item 1A. Risk Factors” of our Form 10-K includes a discussion of our known material risk factors, other than risks that could apply to any issuer or offering. There have been no material changes from the risk factors described in our Form 10-K.