delta airlines Chief Executive Officer Ed Bastian said the airline would “significantly scale back” capacity expansion plans in the short term due to rising fuel costs, adding to the pushback from airlines reeling from historic jet fuel prices caused by wars in the Middle East.
Delta Air Lines on Wednesday expected second-quarter adjusted earnings per share of $1 to $1.50, compared with analysts’ expectations of $1.41, with revenue up “low 10 percent” from a year earlier and beating Wall Street expectations of about 10 percent. Delta Air Lines says its capacity is likely to remain flat this year.
Delta Air Lines said fuel costs will increase by $2 billion this quarter due to higher costs.
Delta Air Lines is the first major U.S. airline to announce first-quarter financial results. united airlinesDelta Air Lines and others had already cut capacity this quarter.
Low supply could mean higher airfares, and airfares are already on the rise. Delta also joined jet blue airlines United Airlines increased its checked baggage fees on Tuesday. Airlines around the world are increasingly affected by rising fuel costs due to their dependence on imports, and are adding fuel surcharges or announcing fare increases.
Bastian said that despite higher travel prices, demand remains strong and Delta’s customer base continues to spend on travel, especially on luxury items such as wider seats.
Bastian told reporters it was unclear whether or when his customers would leave.
Below is a comparison of what Delta Air Lines reported in Q1 to Wall Street’s expectations, based on consensus estimates from LSEG.
Earnings per share: 64 cents adjusted, 57 cents expected Earnings: $14.2 billion adjusted, $14 billion expected
Delta owns refineries that process crude oil into products such as jet fuel and gasoline and diesel, giving it an advantage over other airlines.
“We don’t know where the fuel is going, but as long as fuel is going up, refineries will continue to help us,” Bastian told reporters.
Delta Air Lines expects to post a pretax profit of $1 billion in the second quarter and earn $300 million from the refinery, a big boost for the Philadelphia-area facility it acquired from Delta Air Lines in April 2012, the company said. Phillips 66.
Since the US and Israel attacked Iran on February 28, jet fuel prices have risen more sharply than oil prices. Jet fuel prices in major U.S. cities rose nearly 88% from February 27 to April 6, the Airlines for America trade group said, citing Argus data.
Delta expects fuel costs to total $4.30 per gallon in the second quarter.
Bastian said the airline would not withdraw its full-year forecast, but would not update it due to the uncertainty in fuel prices. When Delta Air Lines last reported its results in January, it predicted that this year’s revenue could be a record high.
“We will be in a better position as we learn more about the impact of periods of fuel surges in the coming months,” Bastian said.
Crude oil futures fell sharply on Wednesday after President Donald Trump announced on Tuesday that he had withdrawn his threat to order the imminent destruction of “an entire civilization” in Iran and agreed to halt plans to attack Iranian infrastructure for two weeks, and that Iran agreed to open the Strait of Hormuz, a vital shipping lane.
Meanwhile, premium travel demand continues to drive performance. Delta Air Lines said revenue from premium tickets, from first class and other expensive options compared to coach, grew 14% year over year in the first quarter. Main cabin revenue increased for the first time since late 2024.
However, seat capacity fell 3% year-on-year in the first three months of 2026 “as premium seat mix rose due to continued investment in fleet renewals.” said the company.
Rival United Airlines, the second most profitable airline in the U.S., is investing in new in-flight technology, improved suites and other perks and increasing its premium seating footprint.
“I think it’s smart that they’re trying to emulate us,” Bastian said.
Bastian said Delta lost some business trips last month when the partial government shutdown led to hours-long Transportation Security Administration lines at airports, but that travel segment appears to have recovered.
Delta Air Lines’ first-quarter net loss was $289 million, or 44 cents a share, compared with net income of $240 million, or 37 cents, a year earlier, due to higher costs in 2026.
Delta’s net income, adjusted for one-time items, was $423 million, or 64 cents per share, compared to $291 million, or 45 cents per share, in the year-ago period.
First-quarter sales rose more than 9% to $14.2 million, after adjusting for sales to third parties such as refineries.
Correction: This article has been updated to reflect that Delta Air Lines reported adjusted net income of $423 million. A previous version of this story described it as net income.
