Delta CEO bets on sustained high fares to hit 2026 profit targets

Bastian expects the airline to reach its full-year profit goal of $6.50 to $7.50 per share, supported by a third-quarter earnings forecast that sits between $2.00 and $2.50 per share. This optimism stems from a shift in travel habits: Delta’s premium seat sales have officially overtaken coach, with first-class tickets generating $6.92 billion in revenue compared to $6.85 billion from the main cabin. This trend aligns with the company’s focus on high-income travelers who remain resilient in a K-shaped economy.

While Delta’s net income dropped 25% to $1.6 billion in the second quarter, operating revenue climbed 19% to $19.76 billion. The carrier is currently passing roughly 60% of rising fuel costs to passengers, a figure Bastian expects to reach nearly 100% this quarter. Beyond passenger travel, the airline’s refinery in Trainer, Pennsylvania, provided a significant boost, with revenue surging 83% to $2.09 billion. With corporate travel rebounding in sectors like banking and defense, the airline plans to maintain its current capacity discipline to ensure these margins hold.