Delta trims Q2 outlook

Delta Air Lines cut its June-quarter profit outlook days after reporting first-quarter results, telling investors to expect earnings well below Wall Street’s prior forecast. (marketbeat.com) The airline issued second-quarter 2026 earnings-per-share guidance of $1.00 to $1.50 on April 9, compared with the analyst consensus of $2.09 tracked by MarketBeat. Delta had reported its March-quarter results a day earlier, on April 8. (marketbeat.com) (sec.gov) In that April 8 earnings release, Delta said it still expected low-teens revenue growth in the June quarter on flat capacity growth and forecast about $1 billion of pre-tax profit, while facing more than $2 billion in higher fuel expense at the forward curve. (ir.delta.com) (prnewswire.com) The gap between revenue growth and profit guidance points to the pressure point for airlines: fuel. Delta said March-quarter earnings rose more than 40 percent from a year earlier, but it also said jet-fuel costs had climbed sharply and disrupted the usual spring profit ramp. (ir.delta.com) Delta’s first quarter was not weak on the surface. The company reported adjusted earnings per share of $0.64 on $14.2 billion in revenue for the March quarter, topping consensus estimates for both figures. (marketbeat.com) (ir.delta.com) Management also kept pointing to demand strength. Delta said premium, loyalty, maintenance, repair and overhaul, and international businesses remained strong, and it said June-quarter capacity would stay flat even as it made “meaningful capacity reductions” in some areas to offset fuel pressure. (prnewswire.com) Analysts did not land in one place after the update. Argus raised its Delta price target to $85 from $80 on April 9 and kept a buy rating, while other firms had already trimmed targets in March, including Wells Fargo to $75 and Raymond James to $76. (marketbeat.com) Delta shares were quoted at $67.82 on its investor relations page on Friday, April 10, with a 52-week range of $38.80 to $76.39. That leaves the stock below the newer bullish targets even after the company’s softer quarter-ahead outlook. (ir.delta.com) The next test is whether Delta can turn strong summer demand into margins despite fuel prices. For now, the company is asking investors to weigh a solid March quarter against a much thinner profit target for the quarter now underway. (ir.delta.com)