Delta Air Lines(DAL.US) kicks off the earnings season! Rising oil prices may force airline giants to withdraw their earnings guidance

LootboxPhobia · 2026-04-07T20:26:04+00:00

Delta Air Lines is about to release its earnings report, with investors paying attention to the impact of rising fuel prices on performance. Morgan Stanley has downgraded airline industry data, expecting the industry to potentially withdraw its FY2026 guidance. Analysts emphasize the resilience of demand and the inevitability of capacity reductions. The market expects Delta's first-quarter revenue to be $14.94 billion, with earnings per share of $0.58. The company may highlight its advantages in fuel cost management, and changes in summer bookings and cash flow prospects will influence the stock price.

LootboxPhobia

2026-04-07 20:26:04

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Zhitong Finance APP noticed that Delta Air Lines (DAL.US) will kick off the aviation sector’s highly anticipated earnings season on Wednesday. In addition to the large-scale weather events in January and February, the recent surge in aviation fuel prices will also keep investors closely focused on updates to Delta Air Lines’ earnings guidance.

Before Delta Air Lines releases its results, Morgan Stanley cut the industry’s various metrics. The firm expects that the entire aviation sector could fully withdraw its 2026 fiscal year earnings guidance, or, more likely, update it to a wider range of fluctuations based on fuel price assumptions. Earnings in the aviation industry in the fourth quarter showed a strong demand trend, which has continued through the mid-quarter earnings update in March.

Analyst Ravi Shankar pointed out that while resilience in summer demand will be key, given that demand is in a downturn—especially in the third quarter—reducing capacity appears relatively unavoidable. As for aviation fuel costs, although the near-term trajectory remains uncertain, the latest information on pricing assumptions and fuel supply is expected to be central.

For Delta Air Lines, the company’s early earnings releases typically set the tone for the entire industry, but Jefferies believes this trend will be even more evident in this quarter. Investors will watch whether Delta Air Lines can maintain the momentum of its recent streak of beating earnings expectations, while also dealing with higher fuel and labor costs. For the first quarter, the market expects Delta Air Lines to report revenue of $14.94 billion and earnings per share (EPS) of $0.58.

On the earnings call, Delta Air Lines may highlight its advantages in managing fuel costs, since the company owns the Trainer refinery.

Regarding earnings guidance, Delta Air Lines’ management previously expected full-year revenue growth of 5% to 7%, with profit growth of about 20%; therefore, any changes in summer bookings, business travel, or free cash flow prospects will be crucial for the stock price. Options trading suggests that after Delta Air Lines reports its first-quarter earnings, the stock’s expected trading range could reach 7%.

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