Delta Air Lines (NYSE:DAL) is set to report second quarter 2026 results before the US market opens Friday, with a stock price that is up 26.4% since the start of the year, performing well, despite rising oil prices. The airline is heading into the print with fresh analyst upgrades, lower fuel costs, and shares trading off last week’s highs, with expectations heightened.
The street is looking for an EPS of $1.50 for the quarter, down from $2.10 in the year-ago period, alongside revenue of $18.85 billion, a 13.25% growth rate Y/Y. The earnings decline comes despite revenue resilience, reflecting margin pressure from cost headwinds earlier in the period before fuel prices began to ease.
What to watch
Markets will be watching a few key areas when Delta reports; with the EPS actuals, how much operating margin has improved from fuel cost relief, and what management signals about summer booking strength heading into the peak travel season likely to take the fore.
Operating metrics worth watching include load factor, yield trends, and unit revenue performance. Management commentary on international versus domestic demand will also matter, especially given Delta’s push to expand trans-Pacific routes through its Korean Air joint venture.
The report covers the quarter ending 30 June 2026, a period that includes the early stages of the northern summer travel season. That timing makes management’s outlook for Q3 and Q4 particularly important, as those quarters capture peak leisure and business travel demand.
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The most significant near-term catalyst for Delta shares is fuel cost relief. Oil prices had fallen below USD 70 per barrel, down roughly 21% over the past month only to move back higher in recent days following renewed attacks by US and Iran. Fuel represents one of the largest variable costs for airlines, and a sustained drop in crude prices can rapidly improve operating margins if demand and pricing hold steady.
Goldman Sachs analyst Catherine O’Brien raised her industry outlook on 2 July, lifting Delta’s price target to $116 and increasing her Q3 and Q4 2026 net income forecasts for the airline sector by 24% and 32% respectively. The upgrade cited strong revenue trends and improved fuel economics as key drivers.
TD Cowen also raised its airline sector targets on the same day, reinforcing the view that fundamentals are improving. The coordinated upgrades from two major Wall Street firms suggest a broad reassessment of airline earnings power heading into the second half of 2026.
With Delta’s stock up near last week’s fresh highs, options markets are pricing a move of ~7% following the print, potentially setting the stage for a break, or a test of support into the weekend.
