Delta Air Lines CEO Ed Bastian expressed confidence that the airline can achieve its original profit targets for this year, citing the ability to transfer increased fuel costs to customers and sustained demand. In an interview with CNBC, Bastian noted that the airline's pricing power is expected to remain strong, even as oil prices decline from their recent highs.
Delta forecasts third-quarter earnings between $2.00 and $2.50 per share, slightly above analysts' expectations of $2.02 per share. The airline also anticipates mid-teen revenue growth compared to the same period in 2025 and reaffirmed its full-year earnings forecast of $6.50 to $7.50 per share.
In the second quarter, Delta reported adjusted earnings of $1.56 per share on revenues of $17.67 billion, surpassing Wall Street's expectations. The airline's premium seating options have been particularly successful, generating $6.92 billion in revenue compared to $6.85 billion from the main cabin.
Bastian highlighted strong demand from corporate travel, especially in sectors like aerospace, banking, and automotive. Although airfare has increased significantly, Delta has only passed about 60% of the higher fuel costs to consumers, with plans to reach nearly 100% this quarter.
Delta's revenue per available seat mile rose 17% year-over-year, while costs per available seat mile increased by 21%. Despite a 25% drop in net income to $1.6 billion, Delta's operating revenue grew by 19% to $19.76 billion, aided by a significant increase in revenue from its refinery operations