Business News of Tuesday, 14 July 2026

Source: www.punchng.com

Delta posts $19.8bn revenue despite record fuel costs

Delta Air Lines has reported a strong second-quarter performance for 2026, posting $19.8bn in operating revenue and $1.4bn in pre-tax profit despite battling what it described as the highest quarterly fuel bill in its history.

In a statement made available to The PUNCH on Monday, the US carrier said the results reflected sustained demand across leisure, premium and corporate travel, as well as growing customer preference for its products, prompting the airline to reaffirm its full-year earnings forecast and confidence in continued growth through 2027.

Delta’s Chief Executive Officer, Ed Bastian, described the performance as evidence of the airline’s resilience and competitive strength, saying the company continued to outperform despite mounting cost pressures.

Bastian said, “Today, we reported our June quarter results, and it is clear that Delta’s brand and industry position are stronger than ever.

“We delivered $1.4 billion in pre-tax profit while absorbing the highest quarterly fuel expense in our history, reflecting broad demand strength, growing brand preference and momentum across our diversified revenue base. This industry-leading performance is powered by the best people in the business.”

He added that Delta remained on course to achieve another year of strong earnings growth despite the challenging operating environment.

“We are executing from a position of strength. While fuel prices have created a multi-billion-dollar headwind for our business, we remain confident in our ability to deliver approximately 20 per cent earnings growth this year. Our diversified revenue streams, disciplined execution, and the commitment of our people continue to differentiate Delta, and we believe we are well positioned to carry this momentum into 2027.”

The airline said record demand across multiple customer segments helped drive its June quarter performance, with non-GAAP operating revenue climbing 14 per cent year-on-year to $17.7bn. Operating cash flow also rose to $1.7bn during the period.

Premium travel continued to be one of Delta’s biggest revenue drivers, with premium revenue increasing 17 per cent over the corresponding period last year as more travellers opted for premium cabins and services.

The airline said cargo revenue also surged 39 per cent, while loyalty-related revenue rose 19 per cent. The carrier said its partnership with American Express remained a significant contributor to earnings, generating $2.4bn in remuneration during the quarter, a 16 per cent increase driven by higher card acquisitions and stronger customer spending.

Chief Commercial Officer Joe Esposito attributed the performance to robust demand across the airline’s network, saying Delta continued to gain market share because of its customer-focused strategy.

Esposito said, “Customer demand remains healthy across leisure, premium and corporate travel, demonstrating the strength of our network and the value customers place on the Delta brand.

“Revenue grew 14 per cent in the June quarter, adding more than $2 billion over the previous year due to broad-based demand strength. We continue to see encouraging booking trends across our diversified business, giving us confidence that our strong revenue performance will extend through the September quarter and potentially into the final quarter of the year.”

The airline also said it had strengthened its fleet and global network by taking delivery of 11 new aircraft, including Airbus A350-900, A321neo and A220-300 jets, while launching new international services to Hong Kong, Porto, Malta and Sardinia, alongside additional frequencies to Madrid, Nice, Rome and Barcelona.