Delta CEO Says Higher Fares Are Here to Stay, Putting 2026 Profit Target Within Reach
Delta Air Lines CEO Ed Bastian says the carrier’s original profit goal is now within reach, as the airline successfully passes higher fuel costs to passengers and expects that pricing power to hold even as oil prices ease from recent highs. “I think it’s sustainable,” Bastian told CNBC, adding that strong demand, a wider range of seat options, and a more disciplined industry—one that learned from past mistakes and won’t rush to add capacity when fuel drops—should keep fares elevated.
Delta on Friday forecast third-quarter earnings of $2.00 to $2.50 per share, ahead of analysts’ $2.02 estimate, and predicted revenue would climb in the mid-teens compared to the same period in 2025. For the full year, the airline stuck to its January forecast of $6.50 to $7.50 per share. In the second quarter, Delta posted adjusted earnings of $1.56 per share on $17.67 billion in revenue, beating Wall Street expectations of $1.48 and $17.53 billion, respectively. Bastian noted that demand is broad-based, with Delta’s premium seats—first class and above—bringing in $6.92 billion in revenue, outpacing the main cabin’s $6.85 billion.
The CEO highlighted stronger-than-expected World Cup travel, including inbound visitors to the U.S., and said corporate travel rose in the second quarter, led by aerospace, defense, banking, and automotive sectors. Carriers have trimmed growth plans and cut unprofitable routes after this year’s record fuel spike, and airfares have jumped—May tickets were up nearly 27% year-over-year, per federal data. Bastian said Delta is passing about 60% of higher fuel costs to consumers and expects that to reach nearly 100% this quarter. Delta’s second-quarter revenue per available seat mile rose 17% from a year earlier, while costs per seat mile climbed 21%. Net income fell 25% to $1.6 billion, though operating revenue rose 19% to $19.76 billion. The airline’s Pennsylvania refinery also shined, with revenue surging 83% to $2.09 billion.