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Delta Shares Jump After Q1 Beat as Fuel Shock Triggers Capacity Cuts

Delta details steps to blunt a sudden fuel spike tied to Iran disruptions.

Overview

  • Delta, which reported results Wednesday before the open, posted adjusted earnings of 64 cents a share and a March‑quarter record $14.2 billion in operating revenue, topping forecasts.
  • The company guided second‑quarter adjusted EPS to $1.00–$1.50 and estimated an all‑in fuel price near $4.30 per gallon that would add more than $2 billion to the quarter’s fuel bill.
  • Management removed planned growth for the June quarter, signaled flat capacity for the year, and raised prices and fees, including a checked‑bag increase, to protect margins.
  • Delta expects about a $300 million second‑quarter boost from its Trainer refinery and aims to recover 40% to 50% of higher fuel costs through fares.
  • Shares rose roughly 11% to 13% in premarket trading after the beat and a brief U.S.–Iran ceasefire that eased oil worries, while analysts split on the outlook with several trimming full‑year estimates.