- Delta Air Lines has reduced capacity by roughly 3.5pc from its original plan.
- Jet fuel prices have risen to around $4.80 per gallon from $2.30 in late 2025.
- The airline has expected more than $2 billion in additional second-quarter costs.
- Delta has reported a net loss of $289m for the first quarter of 2026.
- Checked baggage fees have increased on new bookings and may become permanent.
Delta Air Lines has meaningfully reduced capacity in the current quarter while it waits for global fuel prices to ease. The airline has pulled planned growth amounting to roughly 3.5pc from its original plan. Jet fuel prices have surged from an average of $2.30 per gallon in the final quarter of 2025 to around $4.80 currently.
The carrier has expected elevated fuel prices to add more than $2 billion to second-quarter costs. Delta has reported a net loss of $289m for the first quarter of 2026. The airline has also raised checked baggage fees on new bookings with the change potentially becoming permanent.
Delta has not hedged fuel but has owned a refinery in Pennsylvania that has helped offset costs. The facility has been expected to generate a net profit of $300m in the second quarter. Executives have focused on controllable factors with a high sense of urgency to cut costs and eliminate unprofitable flying.
Ed Bastian shared “the war in the Middle East has driven an unprecedented spike in jet fuel, with prices roughly double what they were earlier in the year.”
