DAL · 10-Q · 2026Q2 · Full report

Gross Margin Drivers - Fuel

DELTA AIR LINES, INC. · 2026-07-10 · Importance 89 · Surprise 82 · In source text

Aircraft fuel and related taxes increased $2.0 billion for the six months ended June 30, 2026 versus the prior year, driven by a 46% increase in average jet fuel purchase price with increases beginning in March 2026. Fuel expense represented approximately 21% of total operating expense for the six months ended June 30, 2026 (up from 17% in 2025), and management expects elevated jet fuel costs to persist until related market disruptions and geopolitical events are resolved. Management adjusted operating metrics (e.g., TRASM and CASM-Ex reconciliations) for fuel and hedge MTM impacts and attributes part of recent revenue pricing increases to higher fuel costs. The company also reports fuel hedging and refinery interactions (Monroe) as drivers of adjusted average fuel price per gallon and fuel expense volatility.

Key facts

Average jet fuel purchase price increased 80%, contributing to a $1.7 billion increase in aircraft fuel and related taxes in the June 2026 quarter versus the June 2025 quarter. source
Aircraft fuel and related taxes increased $2.0 billion compared to the six months ended June 30, 2025 due to a 46% increase in our average jet fuel purchase price, mainly due to increases beginning in March 2026. source
Average price per fuel gallon for the six months ended June 30, 2026: $3.25 versus $2.33 in prior period. source
Average price per fuel gallon, adjusted for the six months ended June 30, 2026: $3.32 versus $2.34 in prior period. source
Total fuel expense for the six months ended June 30, 2026: $6,851 million and total fuel expense, adjusted: $7,001 million (average price per gallon $3.25 and adjusted $3.32). source
Fuel expense represented approximately 21% and 17% of total operating expense for the six months ended June 30, 2026 and 2025, respectively. source
Fuel gallons consumed for the six months ended June 30, 2026: 2,110 million gallons versus 2,088 million prior period. source

Impact estimates

metric	direction	stage	expected	basis
operating_income	negative	realized	—	Fuel gallons consumed for the six months ended June 30, 2026: 2,110 million gallons versus 2,088 million prior period.