Delta Air Lines Flags Over $2B Fuel Expenses In Q2 – Airline Expects To Report $1B Pre-Tax Profit During The Quarter

• The airline expects to report $1 billion in pre-tax profit in Q2, with its refinery providing a $300 million boost.
• Delta CEO Ed Bastian stated that, although the recent spike in energy prices is impacting the company’s earnings, he is confident it ultimately reinforces the airline’s leadership and accelerates its long-term earnings power.
• He added that the demand has remained strong and that the airline is taking steps to protect its margins and cash flow.

Delta Air Lines Inc. (DAL) on Wednesday said it expects fuel costs of over $2 billion in the second quarter, with CEO Ed Bastian reportedly citing uncertainty as the reason the airline is sticking to its previous profit forecast for 2026.

“We’re not updating it in light of the uncertainty, so I think it’d be imprudent to make any estimate at this point,” Bastian said, according to a report by Bloomberg.

The airline expects to report $1 billion in pre-tax profit in the second quarter (Q2), with its refinery providing a $300 million boost. Delta operates the Monroe refinery outside Philadelphia.

Delta shares were up nearly 13% in Wednesday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘neutral’ territory at the time of writing.

Bastian Remains Confident Of Delta’s Long-Term Earnings Power

Bastian stated that even though the recent spike in energy prices is impacting the company’s earnings, he is confident that it ultimately reinforces the airline’s leadership and accelerates its long-term earnings power.

Jet fuel prices have soared by more than 92% since Feb. 27, 2026, through April 7, rising to $4.81 per gallon from $2.5 per gallon, according to Airlines for America.

“Our integrated fuel strategy is a unique differentiator, with the economics of our refinery partially offsetting higher crack spreads,” said Delta’s Chief Operating Officer, Dan Janki.

During its fourth-quarter (Q4) results, Delta forecast fiscal year 2026 earnings per share (EPS) in the range of $6.5 to $7.5. Bastian maintained that he is not walking back on the previous forecast.

“But as we gain more knowledge of the impact of the duration of the fuel spike over the course of the next couple of months, we’ll be in a better position to update it,” the Delta CEO added, according to the report.

Delta Beats Q1 Estimates

Bastian’s comments come amid Delta’s first-quarter (Q1) earnings beat. The airline reported earnings per share (EPS) of $0.64 on operating revenue of $15.9 billion, while Wall Street expected an EPS of $0.56 on revenue of $14.8 billion, according to Fiscal.ai data.

The airline stated that it expects low-teens revenue growth in Q2 amid flat capacity growth. Bastian added that Delta will look to conserve capital expenditure and cash flows if the ongoing uncertainties persist for an extended period in 2026, according to the report.

Bastian Says Demand Remains Strong

Bastian highlighted that the demand has remained strong and that the airline is taking steps to protect its margins and cash flow.

“This includes meaningfully reducing capacity growth, with a downward bias until the fuel environment improves, and moving quickly to recapture higher fuel costs. Delta is best positioned to navigate this environment,” Bastian said.

Total Adjusted Revenue Per Available Seat Mile (TRASM), a key profitability metric for airlines, grew nearly 12% year-on-year (YoY) in Q1 to $0.23.

Delta stated that topline growth in Q1 was driven by premium revenue, which surged 14% YoY, while loyalty and related revenue rose 13% YoY.

DAL stock is down 5% year-to-date, but up 76% over the past 12 months. The S&P 500 ETF Trust (SPY) and the Vanguard Total Stock Market Index Fund ETF (VTI) are up 31% over the past 12 months.

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