Delta Air Lines (DAL) Q1 2026 (USD): EPS 0.64 (exp. 0.60), Revenue 15.9bln (exp. 14bln)

• Adj. operating income was USD 652mln with a 4.6% operating margin
• Adj. pre-tax income was USD 532mln with a 3.7% pre-tax margin
• Operating cash flow was USD 2.4bln
• FCF was USD 1.2bln
• Net debt fell to USD 13.5bln, below 2019 levels.

COMMENTARY:

• Management said demand remains strong and capacity growth is being reduced with a downward bias until the fuel environment improves

GUIDANCE: 

• Expects Q2 pre-tax profit of around USD 1bln, on a more than USD 2bln increase in fuel expenses at the forward curve
• Q2 revenue seen up low-teens Y/Y
• Q2 EPS between 1.00-1.50 (exp. 2.02)
• Q2 operating margin between 6-8%,
• Sees Q2 pre-tax profit of around USD 1bln