Delta(US:DAL)2026-04-08 10:30Revenue Performance - Operating revenue for the March quarter reached $14.2 billion, a record and up 9.4% year-over-year, driven by strong demand across corporate and leisure segments [7]. - Delta's total operating revenue for Q1 2026 was $15,854 million, a 13% increase from $14,040 million in Q1 2025 [30]. - Adjusted operating revenue, excluding third-party refinery sales, was $14,200 million, reflecting a 9.4% increase compared to $12,978 million in the prior year [49]. - Passenger revenue increased by 7% to $12,302 million in Q1 2026, up from $11,480 million in Q1 2025 [32]. - Other revenue surged by 41% to $3,326 million in Q1 2026, compared to $2,352 million in Q1 2025 [34]. - Revenue from premium products and diverse revenue streams accounted for 62% of adjusted operating revenue in Q1 2026, up from 59% in Q1 2025, indicating a 15% increase in this segment [55]. Profitability and Income - Pre-tax profit guidance for the June quarter is approximately $1 billion, despite a projected increase of over $2 billion in fuel expenses [1]. - Operating income for the March quarter was $652 million, with an operating margin of 4.6%, reflecting a 12% increase in pre-tax income year-over-year [20]. - Delta reported a net loss of $289 million in Q1 2026, compared to a net income of $240 million in Q1 2025 [40]. - Pre-tax loss for Q1 2026 was $75 million, with a net loss of $289 million, while adjusted net income was $423 million, representing a 44% increase from the previous year [52]. - Operating income for Q1 2026 was $501 million, down from $569 million in Q1 2025, while adjusted operating income rose to $652 million from $584 million [50]. Costs and Expenses - Non-fuel unit costs increased by 6% year-over-year, with adjusted non-fuel costs totaling $10.5 billion [12]. - Operating expenses rose by 14% to $15,353 million in Q1 2026, up from $13,471 million in Q1 2025 [30]. - Non-fuel costs totaled $10,464 million in Q1 2026, compared to $9,735 million in Q1 2025, reflecting ongoing cost management efforts [58]. - Adjusted operating expense for Q1 2026 was $13,549 million, an increase of 9.3% from $12,394 million in Q1 2025 [59]. - Total fuel expense, adjusted for Q1 2026 was $2,591 million, reflecting an 8% increase from $2,395 million in Q1 2025 [60]. Fuel Prices - The average fuel price per gallon was $2.62, an increase of 7% year-over-year, contributing to an adjusted fuel expense of $2.6 billion [12]. - The average price per fuel gallon increased by 12% to $2.78 in Q1 2026, compared to $2.47 in Q1 2025 [38]. - Average fuel price per gallon, adjusted for Q1 2026 was $2.62, up 7% from $2.45 in Q1 2025 [60]. Debt and Cash Flow - Adjusted net debt decreased to $13.5 billion, down $760 million from the end of 2025, and is below 2019 levels [13]. - Adjusted net debt decreased to $13,540 million in Q1 2026 from $14,300 million in Q4 2025, a reduction of $760 million [62]. - Delta's cash, cash equivalents, and restricted cash equivalents at the end of Q1 2026 totaled $5,235 million, an increase from $3,941 million at the end of Q1 2025 [40]. - Free cash flow for Q1 2026 was $1,227 million, compared to $1,280 million in Q1 2025 [67]. - Net cash provided by operating activities for Q1 2026 was $2,432 million, an increase from $2,378 million in Q1 2025 [67]. Strategic Investments and Fleet Modernization - The company plans to modernize its fleet with 95 new aircraft orders, supporting efficient growth and margin expansion [18]. - Gross capital expenditures for Q1 2026 were $1,179 million, slightly up from $1,174 million in Q1 2025 [63]. - Strategic investments and related cash flows amounted to $54 million in Q1 2026, with no comparable figure in Q1 2025 [66]. Balance Sheet Strength - Delta's balance sheet is described as the strongest in its history, supported by an investment-grade rating and a well-laddered maturity profile [11]. - Total assets increased to $84,431 million as of March 31, 2026, up from $81,317 million at December 31, 2025, representing a growth of 2.6% [42].