Delta reaffirms 2026 profit forecast as fuel volatility pressures airlines

Delta said its fuel bill is expected to be about $4 billion higher this year than last year. It absorbed its highest quarterly fuel expense on record, with total fuel expense of $4.4 billion, up nearly $2 billion from a year earlier.

The airline said it recovered about 60% of the quarter's fuel-cost increase and expects to recover more in the current quarter. For the third quarter, it is assuming a fuel price of about $3.15 a gallon.

U.S. spot jet fuel has climbed back above $3 a gallon amid renewed U.S.-Iran hostilities, though it remains well below an early-April peak of about $4.88 a gallon.

Delta said revenue rose nearly 14% in the second quarter on only about 1% capacity growth, and passenger revenue per available seat mile rose 11% from a year earlier. Executives said the industry has little choice but to protect pricing as fuel and non-fuel costs rise.

Chief Executive Ed Bastian said continued fuel volatility and weak industry returns should help keep current revenue momentum sustainable even if fuel prices ease. Analysts said the bigger test for airlines will come after the Labor Day holiday, when leisure demand typically slows and any increase in capacity could pressure fares.