Delta Air Lines Q2 EPS Guidance Halved to $1.00–$1.50 as Fuel Hits $209
Delta Air Lines reported $14.2 billion in Q1 revenue and EPS of $0.64, with 62% of income from premium services. Jet fuel costs jumped to $209 per barrel after the Western Asia conflict, prompting a half cut to Q2 EPS guidance to $1.00–$1.50 and flat capacity.
1. Q1 Financial Highlights
Delta Air Lines posted Q1 revenue of $14.2 billion and non-GAAP EPS of $0.64, slightly above consensus. Premium services now contribute 62% of total revenue, underpinning strong top-line growth.
2. Premium Revenue Breakdown
High-margin segments—business class, Comfort+ and the $2 billion American Express partnership—fortified operating income and provided a buffer against rising costs.
3. Fuel Cost Surge
Jet fuel averaged $209 per barrel following the Western Asia conflict, up from $85–$90, creating a significant headwind to margins and forward earnings.
4. Outlook and Mitigation
Delta trimmed its Q2 EPS guidance to $1.00–$1.50 and plans to hold capacity flat while implementing a $10 baggage fee increase to recapture elevated fuel expenses.