Withstand the highest fuel expenses in history! Demand for high-end travel is strong, and Delta Air Lines (DAL.US) Q2 performance exceeds expectations and reaffirms full-year guidance

The Zhitong Finance App learned that before the US stock market on Friday, Delta Air Lines (DAL.US) announced better-than-expected second-quarter results and reaffirmed full-year profit guidelines. The company said strong demand for high-end, business and international travel helped offset the impact of the highest quarterly fuel spend in its history.

Data showed that Delta's second-quarter adjusted earnings per share were $1.56, higher than analysts' expectations of $1.51, compared to $2.12 for the same period last year. Revenue increased 14% year over year to a record $17.7 billion, better than analysts' expectations, but capacity increased by only 1%.

The airline also re-released its 2026 adjusted earnings per share guidance given in January this year of $6.50 to $7.50. Delta did not update its full-year guidelines in April of this year because the US-Iran conflict brought great uncertainty to the aviation industry.

Ed Bastian, CEO of Delta Air Lines, said, “We need to continue to ensure balance of payments, and fuel costs are one of our biggest costs. Currently, fuel prices are still up 50%. As a result, I don't expect ticket prices to drop.”

As the first major US airline to release quarterly results, Delta is regarded as a weather vane for the world's largest aviation market.

Delta said its adjusted fuel spending was $4.4 billion, a 77% increase over the same period last year.

Fuel costs have declined since the war in Iran began to show signs of ending, but a new round of US military attacks against Iran this week has raised concerns that the situation may escalate comprehensively again when diplomatic efforts have had little effect.

Regardless, ticket prices are likely to remain high as American Airlines tries to hedge against higher costs.

Bastien said, “The rise and fall in fuel prices has not changed consumer travel needs, and we will continue to meet this demand and ensure that our prices reflect the costs of our business model.”

According to the data, high-end business revenue increased 17% year over year, loyalty-related revenue increased 19%, and cooperative share revenue from American Express increased 16% to US$2.4 billion.

This financial report confirms Delta's long-standing core strategy: a shift in focus to high-margin high-end travelers rather than simply pursuing full occupancy rates. Bastien has emphasized many times that despite the uncertain economic situation, wealthy customers are still willing to pay for high-end experiences, which makes Delta less reliant on discounts than competitors to attract passenger traffic.

Earlier this week, Delta launched basic business class products to give travelers the chance to enjoy premium seats, but no longer include value-added services such as free seat selection and airport lounges.

United Continental Airlines (UAL.US) has previously launched similar products, reflecting the airline's introduction of increasingly segmented fare products to attract a wider range of travelers.

After the earnings report was announced, Delta Air Lines once rose nearly 4% in the premarket, driving up the stock prices of other American airlines. Delta has accumulated a cumulative increase of about 28% this year so far.

As of press release, Delta Air Lines fell 0.6% to $88.47 in the premarket.