Delta Air Lines announced on April 8, 2026, that it will 'meaningfully reduce' its capacity growth plans in the near term due to a significant increase in jet fuel prices, which have surged following the Middle East war and recent U.S. and Israel attacks on Iran [1]. Despite these challenges, Delta reported adjusted earnings per share of 64 cents for the first quarter, beating Wall Street's expectation of 57 cents, and adjusted revenue of $14.2 billion, surpassing the anticipated $14 billion [1]. Shares of Delta rose more than 11% in premarket trading, reflecting positive investor sentiment and extending gains seen across U.S. carriers after a drop in oil prices [1].
Delta forecasted adjusted per-share earnings of $1 to $1.50 for the second quarter, compared to the $1.41 analysts expected, and projected revenue growth in the 'low-teens' percentage points year-over-year, exceeding the roughly 10% forecast by Wall Street [1]. The airline expects capacity to remain flat for the year and anticipates its fuel bill will be $2 billion higher this quarter due to the spike in fuel costs [1]. Jet fuel prices in major U.S. cities have increased nearly 88% since February 27 through April 6, according to Airlines for America, citing Argus data [1]. Delta expects all-in fuel costs of $4.30 per gallon in the second quarter [1].
Delta's CEO Ed Bastian emphasized that demand remains strong despite rising travel costs, with customers continuing to spend, particularly on premium products such as more spacious seats [1]. Bastian noted uncertainty about whether or when customers might pull back, but highlighted Delta's unique advantage of owning a refinery, which is expected to provide a $300 million benefit in the second quarter [1]. The airline expects to post $1 billion in pre-tax profit for the second quarter, with the refinery serving as a major tailwind [1].
Delta, along with other carriers like JetBlue Airways and United, has raised checked bag fees and is likely to see higher airfares as capacity is trimmed [1]. International carriers, more reliant on fuel imports, have responded to the fuel price surge by adding surcharges or announcing fare increases [1].
CONCLUSION
Delta Air Lines' decision to reduce capacity growth in response to soaring jet fuel prices signals a cautious approach amid volatile energy markets. Despite higher costs, Delta's strong earnings and revenue performance, along with its refinery advantage, have buoyed investor confidence. The market takeaway is positive, with shares rising sharply and Delta projecting robust profits for the upcoming quarter.