Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its domestic network centered on core hubs in Atlanta, Detroit, Minneapolis-St. Paul, and Salt Lake City, as well as coastal hub positions in Boston, Los Angeles, New York-LaGuardia, New York-JFK, and Seattle; and international network centered on hubs and market presence in Amsterdam, Bogota, Lima, Mexico City, London-Heathrow, Paris-Charles de Gaulle, Santiago (Chile), Sao Paulo, Seoul-Incheon, and Tokyo. It also provides aircraft maintenance and engineering support, repair, and overhaul services; and vacation packages. The company operates through a fleet of approximately 1,314 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.
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Delta and United Resume Israel Flights
Delta Air Lines and United Airlines are restoring more service to Israel, signaling growing confidence in a market that U.S. carriers have repeatedly pulled back from due to security concerns. Delta will restart daily New York-to-Tel Aviv flights on September 6, while United is adding San Francisco service next spring. Delta's restart is measured: its Atlanta-Tel Aviv service remains suspended until December 18, and Boston service until further notice. United plans three weekly flights between San Francisco and Tel Aviv beginning March 28, adding to its existing service from Newark, Chicago, and Washington Dulles. American Airlines, in contrast, has its Israel flights suspended through March 27, 2027, leaving Delta and United with less direct competition. For investors, Israel itself is unlikely to materially change either airline's overall earnings, but restoring service matters because long-haul international and premium travel are important revenue sources, and limited capacity can support pricing if demand remains resilient.
Delta CEO says AI could boost profits by 50% as airline tests AI-set fares on 3% of tickets
Delta Air Lines CEO Ed Bastian said artificial intelligence could improve the airline's profitability by as much as 50%, potentially lifting its profit margin from around 10% to 15%. Delta is already testing AI to set fares, with the technology influencing 3% of its tickets as of July 2025 and a goal of reaching 20% by the end of that year. The airline is working with AI pricing company Fetcherr, and President Glen Hauenstein has described the technology as a 'super analyst' that could eventually merge fare-setting and inventory management into individualized 'offer management'. Senators Mark Warner, Ruben Gallego and Richard Blumenthal have questioned Delta about whether AI could lead to personalized pricing based on personal data, but Delta says it does not use personal information to set fares and has zero tolerance for discriminatory pricing.
Berkshire Hathaway CEO Greg Abel Raises Delta Air Lines Stake 44% to $5.4 Billion
Berkshire Hathaway CEO Greg Abel increased the company's stake in Delta Air Lines by 44% during the second quarter of 2026, lifting the position to 57,320,000 shares valued at $5,368,591,200 as of June 30, 2026, according to a 13F filing dated August 14, 2026. The purchase of 17,510,544 shares came just one quarter after Berkshire initiated a new Delta position of 39,809,456 shares worth roughly $2.65 billion, making Delta the largest add of the quarter after Alphabet and the only airline in the portfolio. The move marks a reversal of Warren Buffett's long-held skepticism toward airlines, which he famously called a "bottomless pit" in his 2007 shareholder letter, though Delta now derives 61% of its revenue from premium, loyalty, and American Express remuneration streams. Delta affirmed fiscal 2026 adjusted EPS guidance of $6.50 to $7.50 and free cash flow of $3 to $4 billion, and declared a dividend increase to $0.215 per share from $0.1875 on June 18, 2026.
United Airlines CEO Weighs JFK Growth and AI Plans
United Airlines Holdings CEO Scott Kirby is considering further growth at New York's John F. Kennedy International Airport, including seeking additional slots from airlines not generating attractive returns there. The carrier is expected to resume JFK service as early as next year through a partnership involving JetBlue Airways. United also plans to broaden its international network, already the largest among U.S. carriers, and is assessing how artificial intelligence could reshape parts of the airline industry. Kirby has previously discussed potential combinations involving United, Delta Air Lines and American Airlines Group, though those possibilities have faced resistance.
Berkshire Hathaway's Greg Abel Spent $23.5 Billion on Nine Stocks
Berkshire Hathaway CEO Greg Abel deployed roughly $23.5 billion into nine publicly traded companies last quarter, marking the conglomerate's first quarter as a net buyer of stocks since 2022. The largest investment was Alphabet, with a $10 billion private placement in June plus an additional $5 billion to $7 billion in open-market purchases, making it Berkshire's third-largest marketable equity holding. Other U.S. additions included Macy's, Delta Airlines, Lennar, New York Times, and a new position in D.R. Horton, while earlier disclosures revealed increased stakes in Japanese trading houses Mitsubishi, Marubeni, and Sumitomo. The article highlights Alphabet as the best of the bunch, citing its $514 billion contracted revenue backlog, expanding cloud operating margin to 35.6%, and a forward earnings multiple of 16.5 times.
Berkshire Hathaway Q2 profit surges as CEO Greg Abel ramps up equity bets
Berkshire Hathaway reported second-quarter 2026 revenue of US$101.81 billion and net income of US$25.67 billion, with earnings per share from continuing operations of US$17,868. Under new CEO Greg Abel, the company sharply increased equity purchases, including an 83% rise in its Alphabet stake, and executed its biggest share buyback since 2021. The moves signal a greater willingness to deploy cash, though they also raise concentration risk in Alphabet and Delta Air Lines. Simply Wall St community fair value estimates for Berkshire range from about US$799,503 to US$1.18 million.
Berkshire Hathaway boosts Alphabet stake 83% in second quarter
Berkshire Hathaway significantly increased its Alphabet stake in the second quarter of 2026, raising its holdings by 83% to about 106 million shares. The position was worth nearly $38 billion at the end of June, making Alphabet the third-largest holding in Berkshire's U.S. stock portfolio, behind Apple and American Express. Berkshire also increased its stake in Delta Air Lines by 44% during the quarter, taking that position to about $5.4 billion as of June 30. The company initiated a new position in D.R. Horton and significantly increased its holdings in Lennar and Macy's, while roughly halving its stakes in Capital One and Nucor and trimming Bank of America and Kroger. Berkshire also repurchased $4.5 billion of its own shares, marking its largest quarterly buyback since 2021.
Delta Air Lines eyes Austin hub status amid airport expansion
Delta Air Lines is making its first moves to potentially establish Austin as a new hub by expanding its presence at the airport. The carrier has added routes out of Austin to Denver, Miami, Columbus, and Kansas City, increased flight frequency to San Francisco and Indianapolis, and opened a permanent Austin flight attendant base last year. Delta is also launching its first nonstop service from Austin to Paris, France. The airline currently operates 65 daily flights from Austin, and Austin Bergstrom International Airport has seen annual passenger volume soar more than 80% over the past ten years to just under 22 million. The airport is undergoing a phased, multi-year $5 billion expansion to accommodate more flights and passengers.
Berkshire Hathaway Raises Delta Air Lines Stake to 8.7%
Berkshire Hathaway increased its stake in Delta Air Lines to 8.7% as of June 30, up from 6.1% previously, according to regulatory filings. The move makes Delta the only airline Berkshire currently owns, after the conglomerate sold its holdings in major U.S. carriers during the pandemic. The larger position signals confidence in Delta as the industry grapples with fuel costs, capacity issues, and shifting travel demand. The filing reflects holdings as of June 30 and does not indicate whether Berkshire has changed its position since then.
Berkshire Hathaway raises Delta Air Lines stake 44%
Berkshire Hathaway increased its stake in Delta Air Lines by 44% during the second quarter of 2026, lifting its position to 57.3 million shares worth roughly $5.4 billion at the end of June. The move follows an earlier purchase that had built a Delta position worth about $2.6 billion as of the end of March 2026, during Greg Abel's first quarter as chief executive after taking over from Warren Buffett in January. Delta reported record second-quarter revenue of $17.7 billion, up 14% from a year earlier, with pretax profit of $1.4 billion and earnings of $1.56 per share. The airline is guiding to full-year earnings of $6.50 to $7.50 per share, marking 20% growth from last year, along with $3 billion to $4 billion in free cash flow.
Delta launches cheaper premium fares that strip lounge access and seat selection
Delta Air Lines is rolling out Basic fares for Delta First, Delta Premium Select and Delta One, offering lower-priced premium tickets that remove perks like advance seat selection, extra checked baggage and flexible changes. The new Basic premium fares began selling on select routes in July, with Delta First Basic available on some domestic and Latin American routes and Delta Premium Select Basic and Basic Business starting in September on select domestic and long-haul international routes. Passengers still get the premium onboard experience, including lie-flat seats on eligible Delta One flights, but seats are assigned after check-in, travelers earn fewer SkyMiles, and they are not eligible for upgrades or same-day changes. For tickets originating in the U.S. or Canada, Delta charges $300 to change or cancel a Delta First Basic ticket, $400 for Delta Premium Select Basic and $500 for Basic Business, while Classic fares do not carry those fees. Starting January 19, 2027, Basic Business tickets will no longer include access to Delta One Lounges or dedicated Delta One check-in.
United Airlines Approached Delta About a Merger Last Year, Talks Never Advanced
United Airlines approached Delta Air Lines last year about a merger that would have combined the two most valuable U.S. carriers, but the talks never progressed. United CEO Scott Kirby personally called Delta CEO Ed Bastian to pitch the idea, and Delta’s leadership discussed the proposal as part of preliminary due diligence before both airlines moved on. The approach, which became public on July 26, sent United shares up 3.51% to $119.42 and Delta shares up 3.49% to $86.25 that day. A deal was widely seen as impossible on antitrust grounds, though some business leaders had hoped the second Trump administration might allow previously unthinkable combinations. Kirby also floated a merger with American Airlines earlier this year, an idea American’s CEO publicly rejected as anticompetitive.
Global commercial flights hit single-day record of 153,359 on July 23
Global commercial flights reached a new single-day record of 153,359 on July 23, according to tracking data, underscoring robust demand that has lifted major U.S. airline stocks. Delta Air Lines, United Airlines Holdings, and Southwest Airlines all reported strong second-quarter results in July, with Delta beating revenue and earnings expectations and projecting full-year 2026 income of about $73 billion, 15% above 2025 levels. United raised its full-year earnings forecast to $9 to $11 per share, while Southwest posted earnings of $0.94 a share on revenue of $8.72 billion, exceeding analyst estimates. Despite the positive performance, rising jet fuel costs remain a risk, with United warning that higher fuel prices could add up to $6 billion to its expenses this year and Southwest noting it has raised fares in response. Jet fuel typically accounts for 20% to 30% of an airline's operating expenses, and further spikes tied to Persian Gulf tensions could pose headwinds.
Greg Abel Sold 15 Buffett Stock Positions in His First Quarter as Berkshire CEO
Greg Abel sold 15 stock positions that Warren Buffett had initiated during his first quarter as CEO of Berkshire Hathaway, signaling a willingness to chart his own course. The divestitures included long-held winners like Visa, Mastercard, and Amazon, as well as recent underperformers such as Pool Corp., Diageo, and Domino's Pizza. Abel's biggest new buy was Alphabet, which pays only a 0.2% dividend, and he also added Delta Air Lines, while selling high-yielders like Lamar Advertising, Diageo, and Pool. Berkshire's cash pile grew from $373.3 billion to $397.4 billion in the quarter, suggesting Abel is prioritizing cash accumulation over dividend income. The moves indicate Abel will not hesitate to exit positions regardless of their past performance if he does not expect market-beating returns.
GE Aerospace Commercial Engines Revenue Jumps 27% on Strong Aftermarket Demand
GE Aerospace's Commercial Engines & Services segment saw revenue surge 27% year over year to $9.73 billion in the second quarter of 2026, driven by robust aftermarket demand and higher equipment deliveries. Services revenue grew 26%, with internal shop visit revenues up 25% and spare parts revenues increasing more than 25%, while equipment revenue advanced 30% on a 26% rise in unit volume, including a 24% increase in LEAP deliveries. Total orders in the segment rose 18% to $12.93 billion, and the company recently secured major engine orders and service agreements with Jet2, Copa Airlines, Ryanair, United Airlines, and Delta Air Lines. For full-year 2026, GE expects adjusted revenues in the segment to grow about 20%. Shares of GE Aerospace have gained 23.4% over the past three months, outperforming the industry's 8.6% growth, though the stock trades at a forward price-to-earnings ratio of 44.20X, above the industry average of 34.03X.
United Airlines CEO's Merger Bids Rejected by Delta and American
United Airlines CEO Scott Kirby's merger approaches to Delta Air Lines and American Airlines have been rejected. Delta CEO Ed Bastian conducted preliminary due diligence but both sides moved on, while American CEO Robert Isom publicly called the bid a non-starter and anti-competitive. United shares closed at $128.39 on August 3, up 6.5% on the week and 51.8% over the past year, as the carrier focuses on organic growth through Starlink, new A321XLR jets, and joint ventures with ANA and Lufthansa. United posted second-quarter 2026 adjusted earnings per share of $1.99 on $17.67 billion in revenue, a 16% year-over-year increase, and raised full-year adjusted EPS guidance to $9.00 to $11.00.
Air France-KLM submits binding offer for up to 49.9% of TAP Air Portugal
Air France-KLM has submitted a binding offer to acquire between 44.9% and 49.9% of TAP Air Portugal from state holding company Parpública, marking a decisive step in the Portuguese flag carrier's privatization. The offer is backed by a comprehensive strategic plan covering passenger transport, cargo, loyalty, and maintenance, repair and overhaul activities, with a focus on developing new MRO facilities in Portugal alongside TAP Maintenance & Engineering, a partner of over 20 years. Delta Air Lines, Air France-KLM's joint-venture partner and shareholder, supports the bid and would promptly begin negotiations on a strategic commercial agreement with TAP, including reciprocal codeshare and loyalty benefits, should Air France-KLM be selected. The plan envisions positioning Lisbon as a unique Southern European hub, strengthening connectivity to the Americas and Africa, and integrating TAP into the Group's global network while safeguarding its brand, management, and headquarters in Portugal. Air France-KLM CEO Benjamin Smith stated the proposal is a long-term plan for TAP and Portugal, aiming to create a European global aviation champion and support European sovereignty.
Delta Air Lines Fair Value Estimate Jumps 29% After Q2 Results
Simply Wall St has raised its fair value estimate for Delta Air Lines to US$105.52 from US$81.81, a 29% increase that brings it closer to the higher end of recent analyst price targets. The revision follows Delta's second-quarter results and commentary, with the firm citing improved execution on earnings, margin structure, and the growing contribution of premium and loyalty-driven revenue streams. Several Wall Street firms, including Morgan Stanley, Goldman Sachs, and Wells Fargo, have lifted their price targets into a US$90 to US$125 range, often pointing to strong travel demand, lower jet fuel prices, and Delta's highly profitable loyalty program. However, Raymond James downgraded the stock to Outperform from Strong Buy while raising its target to US$104 from US$80, noting that the recent share price rally has reduced near-term valuation upside. Citi and Barclays also cautioned that airline share rallies already reflect a lot of expected good news and that investors may seek confirmation that pricing and demand trends continue to hold.
Delta Air Lines May Be Mispriced as Revenue Diversification Reduces Cyclicality
The valuation gap between GE Aerospace and Delta Air Lines suggests the market may be mispricing Delta, which has significantly diversified its revenue beyond cyclical main cabin ticketing. In its most recent quarter, Delta’s premium cabin revenue of $6.92 billion exceeded main cabin revenue of $6.85 billion, while loyalty travel awards contributed $1.25 billion and travel-related services added $589 million, meaning less than 44% of its $15.6 billion in passenger revenue came from the main cabin. Other revenue, which includes a large portion of co-branded credit card remuneration, surged 50% to $3.9 billion. The market traditionally assigns GE Aerospace a premium valuation due to expectations of recurring services revenue from its installed base of aircraft engines, while pricing Delta as a highly cyclical stock, but Delta’s evolving revenue mix challenges that assumption.
Travel Stocks Surge as US-Iran Tensions Ease and Oil Prices Tumble
Shares of major airlines and cruise operators soared after a reported pause in US-Iran military hostilities sent global oil prices tumbling. Brent crude futures plunged over 6% to around $90 a barrel, sharply reducing fuel costs that are among the largest variable expenses for travel companies. Royal Caribbean rose 1.4%, Carnival gained 2.1%, Norwegian Cruise Line jumped 2.8%, and American Airlines and Delta each advanced 1.7%. The de-escalation in Middle East tensions triggered a risk-on rotation into fuel-sensitive, high-beta travel stocks as investors priced in lower operational costs and easing bond yields.
Aerospace Manufacturing Profits Outpace Airlines as Fortune Global 500 Aviation Landscape Shifts
The 2026 Fortune Global 500 list shows that aerospace manufacturers generally posted higher profits than airlines. GE Aerospace topped all aviation companies on the list with a net profit of 8.704 billion US dollars, earning over 3 billion dollars more than the world’s most profitable airline, Emirates Group. Airbus recorded a net profit of 5.889 billion dollars, up 28.7 percent year on year. Boeing returned to profitability with a net profit of 2.235 billion dollars, and its revenue surpassed that of Airbus. Honeywell posted a net profit of 4.729 billion dollars. Supply chain strains have led to a shortage of aircraft and components, driving up manufacturers’ profits, while airlines have been weighed down by delivery delays and rising costs. Emirates Group reported a net profit of 5.354 billion dollars. Delta Air Lines had the highest revenue among global carriers and ranked second in net profit. China’s three state-owned major airlines remained absent from the Global 500. Two of them were still loss-making in 2025, and their combined losses in the first half of 2026 are expected to approach 10 billion yuan. Xiamen C&D Group ranked 112th with revenue of 97.028 billion dollars, but it swung from profit to loss in 2025, posting a loss of 509 million dollars.
Delta Air Lines Stock Surges Nearly 50% in a Year, Outpacing S&P 500
Delta Air Lines shares have soared nearly 50% over the past 12 months, far exceeding the S&P 500's total return of around 18%. The rally was driven by improved operational results rather than speculative trading, with the carrier absorbing a $1.65 billion year-over-year increase in aircraft fuel costs while reporting only a $238 million decline in operating income. Management reiterated full-year earnings guidance of $6.50 to $7.50 per share, supported by a premiumization strategy that now generates more revenue from first-class sales and upgrades than from main cabin tickets. If earnings hit the high end of forecasts and the stock rerates to 15 times forward earnings, shares could reach approximately $112.50, representing over 37% upside from current levels.
United reportedly approached Delta Air Lines about a potential merger
United Airlines reportedly approached Delta Air Lines last year about a potential merger that would have combined two of the largest U.S. carriers. United CEO Scott Kirby contacted Delta CEO Ed Bastian to pitch the tie-up, and Delta leadership discussed the proposal as part of preliminary due diligence, but the talks did not advance. A United spokesperson said the airline had nothing to share, while Delta declined to comment. Kirby also explored a possible merger with American Airlines earlier this year, but American rejected it, and Kirby later downplayed the likelihood of a major consolidation deal.
Joby Aviation shares jump on Virgin Atlantic air taxi deal
Joby Aviation shares climbed nearly 7% after the electric air taxi developer finalized a multiyear commercial agreement with Virgin Atlantic. The deal makes Virgin Atlantic the exclusive airline partner for Joby's air taxi services in the United Kingdom, allowing customers to book flights through Virgin Atlantic's website and app. Joby plans to launch services from Virgin Atlantic's hubs in London and Manchester, with initial routes including Manchester Airport to Leeds and Heathrow Airport to central London. Joby will manage aircraft operations, route planning, and regulatory approvals through the UK Civil Aviation Authority, while Virgin Atlantic will support customer acquisition and infrastructure integration. The partnership also expands Joby's relationship with Delta Air Lines, which owns a 49% stake in Virgin Atlantic.
Delta and United Airlines Stocks Look Like Values Despite Rising Fuel Costs
Delta Air Lines and United Airlines have reported second-quarter results that show rising jet fuel costs are pressuring profits, but both carriers maintained or raised their full-year earnings outlooks, keeping their stocks in value territory. Delta affirmed its full-year earnings per share forecast of $6.50 to $7.50, while United lifted its range to $9 to $11 from a previous $7 to $11. Based on those projections, Delta trades at 11.3 to 13 times 2026 earnings and United at 10.6 to 12.9 times, with both companies already baking significantly higher fuel costs into their guidance. The airlines are offsetting expense increases through fare hikes, capacity discipline, and a focus on premium cabins and ancillary revenue. The debate for investors is whether the industry remains a cyclical boom-and-bust business or if Delta and United have structurally diversified their revenue enough to warrant buying at these valuations.
Shell signs five-year sustainable aviation fuel deal with Delta Air Lines
Shell has entered a five-year agreement with Delta Air Lines to expand sustainable aviation fuel capacity and infrastructure at key U.S. airport hubs. The deal highlights Shell's role in lower-carbon aviation fuels and comes as its share price stands at £32.54, with a year-to-date return of 17.92% and a five-year total shareholder return of 183.38%. According to a widely followed narrative, Shell's fair value is estimated at £35.51, suggesting the stock is modestly undervalued by about 8.4% relative to the last close. The valuation narrative emphasizes Shell's position as the world's largest LNG optimization player, leveraging arbitrage between the Atlantic and Pacific basins to create a profit center independent of commodity prices. However, risks remain if global gas demand or pricing assumptions shift sharply, or if energy transition policies tighten faster than expected.
Motley Fool Analysts Draw Parallels Between AI Buildout and Past Tech Revolutions
Motley Fool contributors Travis Hoium, Lou Whiteman, and chief investment officer Andy Cross discussed historical lessons from the PC, internet, and mobile eras for today's AI-driven market. They noted that enterprise adoption drove the PC buildout in the 1980s and 1990s, with household penetration rising from 8% in 1984 to over a third by 1997, and that the 2000s saw internet disruptors like Alphabet and Meta emerge after the dot-com bust. The group highlighted that AI is following a similar pattern of foundational infrastructure spending, with enterprises currently driving revenue for companies like Anthropic and OpenAI, while consumer adoption remains a loss leader. They identified robotics as a major unknown upside for Nvidia and questioned whether Apple can find a next form factor beyond the iPhone. On the stock radar, Cross spotlighted Primo Brands, a bottled water company with an $8.5 billion market cap, and Whiteman pointed to Delta Air Lines' strong earnings beat, with adjusted earnings per share of $1.56 versus a $1.51 consensus.
Delta Air Lines Stock Could Hit $100 by 2028 as Earnings Prove Less Cyclical
Delta Air Lines stock could reach $100 by 2028, supported by less cyclical earnings and attractive valuation. The Wall Street analyst consensus target price for Delta Air Lines stock is $108, and the author believes this target, and more, is achievable, with $100 looking within reach on that basis. Management expects $3 billion to $4 billion in free cash flow in 2026, and applying a 20x multiple to the midpoint yields a share price of about $106. Delta absorbed a $1.9 billion year-over-year increase in adjusted fuel costs in the second quarter while still generating $1.56 billion in adjusted operating income, demonstrating resilience. With earnings-per-share guidance of $6.50 to $7.50, the forward price-to-earnings ratio is 11.5 to 13.2 times, making the stock attractive.
San Antonio to Borrow $944 Million for Major Airport Expansion
San Antonio is tapping the bond market for about $944 million to help finance a 20-year development plan at its airport. The cornerstone of the project is a new Terminal C, costing roughly $1.7 billion, with up to 18 gates and more than 850,000 square feet of space, expected to open in June 2028. Delta Air Lines Inc. is committing $30 million to $40 million and American Airlines Group Inc. is investing $25 million to $35 million to build their own lounges in the terminal. The airport is anticipating nearly 15 million passengers by 2040, and the deal, rated A2 by Moody's Ratings and A+ by S&P Global Ratings, is expected to price on July 21 with RBC Capital Markets and Ramirez & Co. as lead underwriters.
StockStory Flags Nature's Sunshine, Delta, and Henry Schein as Profitable but Risky
StockStory identifies Nature's Sunshine, Delta Air Lines, and Henry Schein as profitable companies that may face sustainability challenges. Nature's Sunshine, with a trailing 12-month GAAP operating margin of 5.7% and annual revenue growth of 5.3% over three years, is seen as disadvantaged by its $489.8 million revenue base and below-industry-average margins. Delta Air Lines, carrying an 8.1% operating margin, shows sluggish revenue passenger mile trends and shrinking returns on capital, with its stock at $86.36 per share. Henry Schein, at a 4.9% operating margin, has underperforming organic revenue and estimated sales growth of just 3.7% for the next 12 months, with its stock at $88.27.
Delta Air Lines resets fares higher as premium travel demand holds up
Delta Air Lines is raising fares to offset higher fuel costs linked to recent geopolitical events and plans to keep fares at a structurally higher baseline even if fuel prices ease, citing reduced discounting across the industry. The airline is leaning on growing demand for premium and corporate travel, with new premium products and lounges supporting this shift. Delta's stock has risen 24.5% year to date and 57.0% over the past year, recently closing at $85.96. The move to maintain higher fares alongside added premium offerings may influence how the wider airline industry passes costs on to travelers.
United Airlines to sell guaranteed empty middle seat in Economy Plus on new Airbus A321XLR
United Airlines will begin selling an Economy Plus option that guarantees an empty middle seat later this year on its new Airbus A321XLR aircraft. The airline is installing a custom tray table that stretches across the unoccupied middle seat, shared by window and aisle passengers, and claims to be the first US carrier to offer such a product. The move allows United to operate with four flight attendants instead of five for 152 coach seats, trimming staffing costs while generating extra revenue. Pricing for the perk has not been disclosed. The initiative is part of a broader industry trend of carriers creating finer premium tiers, with Delta recently introducing a Basic Business class that omits certain benefits.
Delta Air Lines was the top contributor to the Oakmark Fund in the second quarter of 2026, driven by healthy travel demand and improving industry profitability. The fund noted that fuel prices spiked in March following the onset of the Iran War, creating a near-term headwind, but first-quarter results showed the industry passing through higher fuel costs more quickly than historically, signaling greater rationality. Travel demand remained strong, particularly in premium leisure and corporate segments where Delta's competitive position is strongest. Sentiment improved as oil prices declined toward the end of the quarter, and the fund believes the airline industry will emerge from the fuel price shock with improved profitability, with Delta especially well positioned given its focus on premium experiences that support greater pricing power.
Delta Air Lines Stock Outlook as Premium Demand Fuels Growth
Delta Air Lines continues to stand out in a tough airline backdrop, with premium demand, loyalty revenue and corporate travel helping support growth. Total operating revenues rose 16% year over year to $35.6 billion in the first half of 2026, while adjusted total revenue per available seat mile increased 10%. Premium products revenue grew 16%, supported by strong leisure, corporate and loyalty demand. The company ended the June quarter with $7.7 billion of liquidity and affirmed its full-year 2026 free cash flow outlook of $3-$4 billion. DAL currently carries a Zacks Rank #3 (Hold) and has a VGM Score of A.
Delta Air Lines Stock Drops Despite Earnings Beat as Non-Fuel Costs Surge
Delta Air Lines reported earnings of $1.56 per share, beating estimates, and posted record revenue that grew 14% to more than $2 billion over last year, yet the stock slipped 1.8%. The decline came as non-fuel unit costs increased 6.8% year-over-year, raising concerns about margin pressure despite the airline's demonstrated pricing power. Management reaffirmed full-year earnings guidance of $6.50 to $7.50 per share and guided for a third-quarter operating margin of 11% to 13%. International unit revenue growth of 8% lagged the domestic segment's 12.4%, adding to cost discipline worries.
Delta leans on premium and loyalty revenue to absorb record fuel costs
Delta Air Lines beat June-quarter estimates and maintained its full-year forecast despite a 77% surge in adjusted fuel expense to $4.4 billion, the largest quarterly fuel bill in its history. Adjusted operating revenue rose 14% to $17.7 billion on just 1% capacity growth, driven by a 17% increase in premium ticket revenue and a 19% jump in loyalty and related revenue, while American Express remuneration climbed 16% to $2.4 billion. Premium products and diversified revenue streams accounted for 61% of adjusted operating revenue, up 2 percentage points from a year earlier. The company reaffirmed its full-year adjusted earnings guidance of $6.50 to $7.50 per share and raised its dividend by 15%, signaling confidence in its cash generation. Delta expects September-quarter revenue to rise in the mid-teens with an operating margin of 11% to 13%.
Early S&P 500 reports show perfect revenue growth record despite mixed EPS
Early second-quarter results from PepsiCo and Delta Air Lines, two of the first S&P 500 companies to report, delivered a perfect record of year-over-year revenue growth and beats against analyst expectations, even as earnings per share performance was mixed. PepsiCo posted a 6.4% revenue increase to $24.18 billion, topping the $23.97 billion consensus, but core EPS of $2.20 narrowly missed the $2.21 estimate, and its shares fell 3.2% in premarket trading. Delta Air Lines gained 1.8% premarket after adjusted EPS of $1.56 beat by six cents on adjusted revenue of $17.7 billion, above the $17.53 billion forecast, and it affirmed full-year 2026 adjusted EPS guidance of $6.50 to $7.50, well above the $5.95 expectation. Both companies reaffirmed their full-year financial outlooks. The broader earnings season accelerates next week with reports from major financial, healthcare, and industrial names including JPMorgan Chase, Bank of America, UnitedHealth Group, Netflix, and Johnson & Johnson.
SK Hynix jumps 17% in Nasdaq debut, Meta surges on AI chip report
SK Hynix American depositary receipts surged about 17% in their Nasdaq debut after pricing at $149 and raising $26.5 billion for expansion plans. Meta Platforms jumped almost 6%, extending its weekly gain to more than 14%, after a Reuters report said Facebook plans to put an AI chip into production in September and suggested compute costs will be lower than expected. WD-40 rallied 10% on better-than-expected earnings and raised full-year guidance. Vodafone U.S.-listed shares jumped 13% after French billionaire Xavier Niel took a 16% stake worth about $6 billion, becoming the largest holder. Delta Air Lines dipped more than 2% despite beating estimates, while Netflix fell 3% on a report it discussed adding live TV channels and bundling with other services.
Delta Air Lines spent more than $4 billion on fuel in the second quarter as the war in Iran sent energy prices soaring. The airline's wholly owned oil refinery in Trainer, Pennsylvania, helped recoup some of those costs, with its performance surging 83% to bring year-to-date revenue to $2.09 billion, essentially offsetting $0.11 per gallon of jet fuel cost. Jet fuel is typically one of the largest operating expenses for airlines, and US Gulf Coast jet fuel swaps remain roughly 60% above where they started the year. Delta recognized a $2 billion increase in fuel expenses for the quarter compared to the same period a year ago. The refinery, purchased from ConocoPhillips in 2012, provides Delta with 200,000 barrels per day of jet fuel through in-house production or swaps, approximately 75% of its consumption, and has served as a hedge against oil price spikes.
Delta says higher airfares expected to last despite drop in oil prices
Delta Air Lines says elevated airfares are likely to persist despite a recent drop in oil prices, as it reported record-high quarterly revenue and strong travel demand. CEO Ed Bastian told CNBC that the airline has been able to pass along 60% of its extra fuel costs to consumers and plans to eventually pass along all elevated costs, with the company posting a $1.4 billion profit. Bastian noted that Delta's premium revenue grew 17% year-over-year while main cabin sales increased 8%, and that the airline's customers are at the top end of the K-shaped economy with significant wealth accumulation. He added that airfares, which are up 12 to 15% from last year, remain a tremendous bargain amid overall inflation, and that flyers are still willing to spend on travel due to a post-COVID effect.