Delta Air Lines Erases All 'Epic Fury' Losses As In-House Refinery Cushions Fuel Shock

Delta Air Lines Erases All 'Epic Fury' Losses As In-House Refinery Cushions Fuel Shock

Delta Air Lines soared in premarket trading on a combination of the U.S.-Iran ceasefire and stronger-than-expected first-quarter results, with the carrier's in-house refinery helping to lower the average jet fuel price for its fleet in the first quarter, making it appear to be one of the better-positioned carriers than most peers to withstand an energy shock.

Even without a ceasefire in the Middle East, Delta's first-quarter results only exemplified its strategic advantage over peers: its Trainer refinery in Pennsylvania, operated through its wholly owned subsidiary Monroe Energy, reduced the airline's fuel price by more than 2% during the quarter and is expected to provide a $300 million benefit in the second quarter.

"Delta is best positioned to navigate this environment, with a leading brand, strong financial foundation, and the benefit of our refinery," Delta CEO Ed Bastian wrote in the earnings release.

Bastian continued, "We delivered earnings that were more than 40% higher than last year, even with a significant increase in fuel costs and operational disruptions across the industry."

The airline expects second-quarter jet fuel expenses to top $2 billion at the forward curve.

Here's a snapshot of first-quarter earnings (courtesy of Bloomberg):

Adjusted EPS 64c vs. 45c y/y, estimate 57c (Bloomberg Consensus)

Loss per share 44c vs. EPS 37c y/y
Adjusted revenue $14.20 billion, +9.4% y/y, estimate $14.08 billion

Passenger revenue $12.30 billion, +7.2% y/y, estimate $12.28 billion


Cargo revenue $226 million, +8.7% y/y, estimate $213.7 million

Passenger load factor 81.6% vs. 81.4% y/y, estimate 82.4%

Available seat miles 69.16 billion, +1.1% y/y, estimate 69.15 billion

Revenue passenger miles 56.47 billion, +1.4% y/y, estimate 56.96 billion

Adjusted net income $423 million, +45% y/y, estimate $372 million

Yield per passenger mile 21.78c, +5.6% y/y

"Demand remains strong, and we are taking actions to protect our margins and cash flow. This includes meaningfully reducing capacity growth, with a downward bias until the fuel environment improves, and moving quickly to recapture higher fuel costs. Delta is best positioned to navigate this environment," the CEO said.

Earnings outlook for the second quarter (courtesy of Bloomberg):

Sees adjusted EPS of $1 to $1.50, estimate $1.45


Sees adjusted total revenue up low teens y/y


Sees adjusted operating margin of 6% to 8%

Shares of Delta jumped nearly 13% in premarket trading. Delta shares tumbled into a bear market last month during the U.S.-Iran conflict but have since rebounded from mid-March.

Related: 

Airline Stocks Soar On Iran Ceasefire As IATA Sees "Positive" Tailwinds, But Warns Jet Fuel Crisis Will Persist
Delta is the only U.S. airline that operates a major refinery, and it appears Wall Street is rewarding the carrier for it.

Tyler Durden
Wed, 04/08/2026 - 10:40