DAL stock got a fresh full-year target on Friday morning. Delta Air Lines reinstated 2026 adjusted EPS guidance of $6.50 to $7.50 after second-quarter results beat estimates on revenue and profit. The airline did it while carrying its highest quarterly fuel expense in history.
Ed Bastian’s 20% earnings call
Delta reported adjusted revenue of $17.67 billion, above the $17.53 billion analysts had expected, and said that figure was up 14% from a year earlier. Adjusted earnings per share came in at $1.56, topping the $1.51 estimate, while adjusted net income reached $1.027 billion versus $985.2 million expected.
Ed Bastian said, "We are affirming the guidance we set at the start of the year to grow earnings by 20%, overcoming a multi-billion fuel headwind". For shareholders, that is the key shift: the company pulled guidance back at the end of the first quarter, then restored it after showing it could still beat on both top and bottom lines.
Fuel cost versus premium revenue
Delta said adjusted fuel expense totaled $4.4 billion in the quarter, up 77% from a year earlier. Erik Snell said Delta's fuel bill for the year will be $4 billion higher than a year ago. The company is leaning on premium business revenue, which grew 17%, and loyalty and related revenue, which rose 19%.
American Express remuneration was $2.4 billion, up 16%, and premium corporate sales climbed 25%. Delta also announced a Basic Business class to its fare structure this week, adding another lever to the mix as it tries to protect margins while fuel stays elevated.
Delta’s third-quarter target
Delta projects third-quarter revenue growth in the upper mid-teens, operating margin of 11% to 13%, and adjusted EPS of $2.00 to $2.50. Erik Snell said, "We see revenue strength continue into the third quarter, as you know, a lot of the third quarter is already booked, so we expect continued revenue momentum".
The near-term question for DAL stock is whether the carrier can keep converting that booked demand into higher earnings fast enough to offset fuel. If premium demand holds and the company keeps recapturing fuel cost elsewhere, the restored full-year range gives investors a cleaner line of sight than the removed guidance did in the spring.
