Delta Q2 Profit Nears $2 Billion, Revenue Nears $20 Billion

Revenue continued on its record trajectory for Delta as the carrier boasted a $19.8 billion gross revenue for Q2, a whopping 19% increase from last year. But profit fell by a quarter, from $2.1 to $1.6 billion as the carrier dealt with climbing costs for both fuel and Biscoffs. Delta’s fuel costs jumped 66% at the pump, paying $3.66 per gallon, compared to just $2.21 a year ago. While fuel prices have eased in the last several weeks, prices for the industry at-large are still up 32% YoY.

On the revenue side, premium sales were greater than main cabin for Delta, at $6.92 billion in the front of the plane compared to $6.85 billion behind the curtain. Delta’s Q2 unit revenues increased 17% but was outpaced by a 21% jump in unit costs.

Looking forward, Delta’s guidance for Q3 expects an operating margin of 11-13% and between $2 and $2.50 in earnings per share. It sees that figure ballooning to between $6.50 and $7.50 for the rest of FY26 and sees its free cash flow somewhere between $3 and $4 billion for the rest of the year, which might leave enough left over for the airline to actually fix its lagging operation.

Delta Unveils Basic Premium Fares

Three months after United first began its unbundled business fares, it’s Delta’s turn to give it a shot with what we’re calling Delta None.

The concept is exactly what you’d think — you get the smugness that comes from sitting up front along with the shame of knowing you’re on a Basic ticket. What stays? The seat, the meal, and a first checked bag. What is excluded? Lounge access, full mileage earning, advanced seat assignments, and a second or third checked bag.

Delta’s release doesn’t specifically address SkyPriority access, but does say Basic Business (or Basic First Class for domestic flights) does retain Zone 1 boarding, which saves Basic customers from the indignity of having to board with economy passengers. Basic Business (generally flights with Delta One even though it’s not called Delta One) won’t be implemented until this fall, while Basic First (domestic, Canada, Caribbean, and Latin America) is for sale now on select routes.

United still permits United Club access on its Basic Business fares while keeping the hoity-toity Polaris Clubs to full-fare paying, non-basic customers. But on DL, all lounge access (barring another way to enter such as a credit card) will go away soon. Basic Business customers will still receive access to Delta One and Sky Clubs through January 18 to allow for a transition period. But if you’re available, join us on January 19 as we fan out to Delta One lounges across the country to sit near the check-in desk and watch. We’ll bring the popcorn.

JetBlue Begins Its Massive Fort Lauderdale Increase

JetBlue announced it has now started flying the first tranche in its big increase from its Fort Lauderdale hub as the carrier continues to double triple down on FLL since the demise of a yellow tinted airline earlier this year.

Two new cities joined the JetBlue network from FLL this week with five more to come.

• Baltimore (3x daily, begins July 9)
• Charlotte (3x daily begins July 9)
• Barranquilla (1x daily begins October 1)
• Cali (1x daily begins October 15)
• Columbus (1x daily begins November 2)
• Indianapolis (1x daily begins November 2)
• Caracas (1x daily, start date TBA)

Meanwhile six cities that already have service from elsewhere on JetBlue started their FLL flights this week and one more hits in November.

• Cleveland (1x daily begins July 8)
• Nashville (3x daily begins July 9)
• Detroit (2x daily begins July 9)
• Houston/IAH (3x daily begins July 9)
• Chicago/ORD (2x daily begins July 9)
• Ponce (1x daily begins July 9)
• San Diego (1x daily begins November 19)*

*FLL-SAN will be on Mint-equipped aircraft

Air Canada Poaches New CEO from SAS

Air Canada announced today that Anko van der Werff will leave SAS early next year to become the new CEO of Air Canada, replacing Michael Rousseau.

Rousseau’s retirement will become official on August 31, and it comes after 19 years at the airline at which point he was forced out chose to retire because he didn’t speak enough French following an aircraft’s collision in New York earlier this year. His replacement, van der Werff, has more than 25 years experience in the industry and perhaps most importantly…he speaks (some) French. At SAS, van der Werff led the airline through bankruptcy and a switch to SkyTeam.

His time at SAS was preceded by stints at Avianca, Aeromexico, KLM, and Qatar Airways. To prepare for his interview, he memorized every Canadian winner of the Stanley Cup by year, learned how to make poutine from scratch, and started beginning his days with a shot of maple syrup.

EasyJet Agrees to Takeover Offer…Or Does it

As Europe’s second-largest ULCC, easyJet has been the apple of Castlelake‘s eye for quite a while now. And it what is at least its 5th attempt, the investment firm finally made an offer the board accepted. For those of you who weren’t with us earlier in the semester, this comes after Castlelake took a 1/3 stake in SAS in partnership with Air France-KLM in 2023.

Castlelake’s offer came in at £6.90 per share and was expected to go to a full vote early next month. Castlelake is not European, so it cannot take a majority stake in the airline on its own — it’s going to need a European partner. The transaction will also require a yes vote from easyJet’s shareholders and regulatory approval.

However, a plot twist emerged in the early hours of July 10. Apollo Global Management has swooped in at the last minute and and offered £7.15 per share, about 3.5% more. In addition, Apollo offered existing easyJet shareholders an opportunity to roll their shares into the holding company that it uses to acquire the carrier, allowing them to remain shareholders of the airline. Apollo will have the same issues to deal with as far as not being based in Europe and it’ll have to sort that out.

EasyJet’s board has reportedly pulled its agreement from Castlelake and plans to move forward with Apollo. For now. But considering Castlelake made five different proposals and bids to takeover easyJet, we have to assume they won’t accept this new development without a fight. Apollo has until August 7 to submit a binding bid.

• Air Premia‘s is Southwest’s newest interline partner.
• Air Zimbabwe is resuming service to London/Gatwick.
• Arkia is close to being sold.
• Azul debuted on the NYSE on Thursday.
• Breeze now allows the straight purchase of Very Nice BreezePoints via Plusgrade.
• Copa is bucking the free Starlink trend.
• Etihad is near an agreement for 10 B787s.
• Frontier is selling 11 A321neos it doesn’t have in its possession yet to Irish-based lessor Avolon.
• GOL scored its first wet-leased A330-200.
• Jet2 says bookings for summer holidays are up.
• Mandarin Airlines is wet-leasing a high-density A321neo.
• Philippine Airlines raised $300 million.
• Riyadh Air is adding Mumbai service.
• Saudia ordered four new freighters.
• TAROM will take delivery of its first A320 later this summer.
• United will have to move forward with a trial over its windowless window seats.
• Wizz Air is growing in Spain this winter.

Why do we say ‘slept like a baby’? Babies wake up every two hours crying.

I want to sleep like my dog. Hours at a time, any time, any place, no responsibilities, zero regrets.