Delta Air Lines is “best positioned to navigate” the fallout from the Iranian conflict despite reporting a net loss of $289 million between January and March 2026.
On April 8, 2026, CEO of Delta, Ed Bastian struck a positive while facing the airline industry’s toughest challenge since the COVID-19 pandemic.
Bastian said that “demand remains strong” while the carrier takes “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,” said Bastian.
The cut will result in a 3.5% reduction in passenger capacity over the next three months.
In addition to cutting capacity, Delta announced on April 7, 2026, that for the first time in two years there would be a rise in checked bag fees.
A $10 increase will see the first checked bag go up from $35 to $45, while the second will rise from $45 to $55.
“Delta is best positioned to navigate this environment, with a leading brand, strong financial foundation, and the benefit of our refinery. In the June quarter, we expect to lead the industry with $1 billion of profit. And while the recent fuel spike is currently impacting earnings, I’m confident this environment ultimately reinforces Delta’s leadership and accelerates long-term earnings power,” said Bastian.
Delta expects that jet fuel will cost $2 billion (based on around $4.30 a gallon) more between April and June 2026, than last year, however news of a ceasefire between the US and Iran may now limit the impact.
Delta Air Lines abandoned fuel hedging roughly a decade ago, as did American Airlines and United Airlines, but retains a partial buffer through its ownership of the Trainer refinery near Philadelphia, which can supply a portion of its fuel needs at production cost.
According to the Financial Times, during a call with journalists, Bastian said the airline had not updated its full year financial guidance as this would be “premature given all the uncertainty” around Iran.
Delta said that its net loss between January and March 2026 stood at $289 million, compared to $320 million income over the same period last year.
The operating revenue increased 13% from $14 billion between January and March 2025 to $15.9 billion this year.
“Total revenue of $14.2 billion was a March quarter record and nearly 10 percent higher than last year, growing several points above our initial outlook, on broad demand strength across corporate and leisure,” said Joe Esposito, Delta’s CCO. “With continued strength in demand, combined with our actions on capacity reductions and fuel recapture, we expect total revenue growth in the June quarter to be up low-teens on flat capacity over prior year.”
