Company Reports

Delta Air Lines positions itself as a premium airline, with the highest revenue yield and among the highest costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as postpandemic supply and demand return to some kind of equilibrium.

Delta earned 11% less operating profit on 19% more revenue and 1% more capacity in the second quarter compared with 2025. Salaries increased 8% since last year, while fuel expenses climbed 67%. Delta's premium cabin sales rose 17% versus 2025, while economy seating revenue rose 8%.

Delta Air Lines positions itself as a premium airline, with the highest revenue yield and among the highest costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as postpandemic supply and demand return to some kind of equilibrium.

Delta earned 12% less operating profit on 13% more revenue and 1% more capacity in the first quarter, compared with 2025. Salaries increased 11% since last year, while fuel expenses climbed 14%. Delta's premium cabin sales rose 14% versus 2025, while economy seating revenue was essentially flat.

Delta Air Lines positions itself as a premium airline, with the highest revenue yield and among the highest costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as postpandemic supply and demand return to some kind of equilibrium.

We lowered our forecast for long-term air travel growth based on observed relationships among overall economic growth, demand for air travel, and the US share of global travel, which reduced our 2030 forecast for US airline capacity by 8%. We now suspect US airline capacity may shrink 1% in 2026.

Delta Air Lines positions itself as a premium airline, with the highest revenue yield and among the highest costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as postpandemic supply and demand return to some kind of equilibrium.

Fuel prices have spiked since March 6, as US-Israeli attacks on oil infrastructure in Iran threatened global petroleum supply. We updated our forecasts to reflect the impact of higher fuel costs through the second quarter, offsetting some of the benefit of long-term tax deferrals in our valuations.

Delta Air Lines positions itself as a premium airline, with the highest revenue yield and among the highest costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as postpandemic supply and demand return to some kind of equilibrium.

Since the US and Israel launched an attack on Iran on Feb. 28, and Iran pledged to close the Strait of Hormuz to petroleum shipments, market prices for crude oil and other distillates like kerosene or heating oil have risen 12% in the two trading days since.

Delta Air Lines positions itself as a premium airline, with the highest revenue yield and among the highest costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as postpandemic supply and demand return to some kind of equilibrium.

Delta earned 15% less operating profit on 3% more revenue and 1.3% more capacity in the fourth quarter, compared with 2024. Salaries increased 11% since last year, while fuel expenses were 1% lower. Delta's premium cabin sales rose 9% versus 2024, offset by a 7% decline in economy seating revenue.

Airbus issued a directive on Nov. 28, followed by regulators, for airlines to immediately roll back a software update on flight computers present in thousands of A320-family jets before operating them again. Most operators were able to patch their affected aircraft overnight by Nov. 29.

To reduce strain on the unfunded and understaffed air traffic control system, the US Federal Aviation Administration announced restrictions on air traffic at 40 busy airports to go into effect Friday, Nov. 7, that would reduce flights by about 10% until the US government regains funding.

Delta earned 21% more operating profit on 6% more revenue and 4% more capacity in the third quarter, compared with 2024. Salaries increased 5% since last year, while fuel expenses were 6% lower. Delta's premium cabin sales increased 9% versus 2024, offset by a 4% decline in economy seating revenue.

Delta Air Lines positions itself as a premium airline, with the highest revenue yield and among the highest costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as postpandemic supply and demand return to some kind of equilibrium.

Delta earned 7% less operating profit on flat revenue and 4% more capacity in the second quarter, compared with 2024. Salaries increased 10% since last year, while fuel expenses were 13% lower. Delta's premium cabin sales increased 5% versus 2024, offset by a 5% decline in economy seating revenue.

Delta Air Lines positions itself as a premium airline, with the highest revenue and costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as the levers of segmentation and the definition of a business traveler evolve.

Shares of US airlines were buffeted in recent sessions by heightened investor concerns about tariffs potentially triggering a worldwide recession, or worse. Airline profits remain vulnerable to slack demand, and we have reviewed our uncertainty ratings for US airlines under coverage.

Delta Air Lines positions itself as a premium airline, with the highest revenue and costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense on almost flat capacity. While we believe Delta will continue to garner premium revenue yields, we see the spread between those yields and its overall costs more closely resembling the industry's in the long term, especially as the levers of segmentation and the definition of a business traveler evolve.