Delta Air Lines' first-quarter performance exceeded expectations, but profit guidance fell short of forecasts.

2026-04-08 11:52:06

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Investing.com - Delta Air Lines reported first-quarter results on Wednesday that beat expectations, but its outlook for the current quarter failed to meet market expectations.

Ahead of the earnings release, Delta Air Lines’ share price had already risen sharply, boosted by the announcement of a U.S.-Iran ceasefire deal, a steep drop in oil prices, and gains across airline stocks.

As of 06:41 a.m. Eastern Time (10:41 a.m. Greenwich Mean Time), the stock was up more than 12%.

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The Atlanta-based airline reported earnings per share of $0.64 for the first quarter, beating analysts’ expectations of $0.61. Revenue came in at $14.2 billion, above the market’s forecast of $13.97 billion. Operating income for the quarter was $652 million, with an operating margin of 4.6%.

Delta Air Lines CEO Ed Bastian said: “Delta Air Lines’ performance highlights the strength of our brand and the stability of our financial foundation. Despite a significant increase in fuel costs and operational disruptions facing the entire industry, our earnings are up more than 40% versus last year.”

“Demand remains strong, and we’re taking action to protect our profit margins and cash flow. This includes meaningfully reducing capacity growth, maintaining a downward bias before the fuel environment improves, and quickly taking steps to recover the higher fuel costs.”

For the second quarter, Delta Air Lines expects earnings per share of $1.00 to $1.50, below Wall Street’s estimate of $1.70, and expects an operating margin of 6% to 8%. The company expects total revenue to grow in the low double-digit percentages year over year.

The guidance is based on forward curve fuel prices as of April 2, and includes about $300 million in refinery earnings. The company expects an all-in fuel price of approximately $4.30 per gallon for the second quarter.

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