Delta (DAL) Q1 2026 Earnings Call Transcript

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DATE

Wednesday, Apr. 8, 2026 astatine 10:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Ed Bastian

• President — Glen W. Hauenstein

• Chief Commercial Officer — Joe Esposito

• Chief Financial Officer — Daniel Janki

• Vice President, Investor Relations — Julie Stewart

• Chief Marketing and Communications Officer — Tim Mapes

Full Conference Call Transcript

Ed Bastian: Thank you, Julie, and bully morning, everyone. Thank you for joining us. Before we begin, I privation to admit the ongoing struggle successful the Middle East. Our thoughts are with each those affected and we stay hopeful for a peaceful resolution. Turning to our show for the March quarter. Our results underscore the powerfulness of Delta's marque and the durability of our fiscal foundation. We delivered net that were 40% higher than past twelvemonth and accordant with our January guidance adjacent with the important step-up successful substance and respective outer headwinds. Our beardown results were driven by grounds revenue, which grew astir 10%, expanding much than $1 cardinal implicit past year.

Demand was broad-based crossed firm and leisure, with continued momentum successful high-margin, divers gross streams. As a result, we delivered a pretax nett of $530 cardinal and net of $0.64 per share, with $1.2 cardinal of escaped currency travel and a 12% instrumentality connected invested capital. Our results are powered by the Delta radical who volition ever beryllium our top competitory advantage, and I privation to convey each 100,000 members of the Delta squad for their committedness to delivering for our customers each and each day. For the seventh year, Delta's people-first civilization has earned a spot connected the Fortune 100 Best Companies to Work For list, moving into the apical 10 for the archetypal time.

When Delta succeeds, truthful bash our people. In February, we celebrated $1.3 cardinal successful profit-sharing payouts. Similar to past year, this was much than the remainder of the manufacture combined. Looking astatine the existent environment, request remains strong. The acceleration we saw successful March is carrying guardant into the June quarter. Over the past month, currency sales, which are the clearest indicator of demand, are up treble digits, with spot crossed the booking curve, geographies and products. Our consumers are continuing to prioritize experiences, with question among the apical spending categories. We are seeing this successful continued double-digit walk maturation connected the Delta American Express Card portfolio, gathering connected past year's double-digit growth.

Combined with beardown firm trends, our lawsuit basal is showing greater resilience to macro and geopolitical uncertainty. The warfare successful the Middle East has driven an unprecedented spike successful pitchy substance with prices astir treble what they were earlier successful the year. In this environment, our absorption is connected what we tin control, moving a reliable operation, taking attraction of our radical and customers, and protecting our margins and currency flow. As portion of that, we are meaningfully reducing capableness successful the existent 4th with a downward bias until we spot the substance concern improve. At the aforesaid time, we're moving rapidly to recapture higher substance prices.