Wells Wheels Up: Wetherbee's Airline Weekly

Research evidence excerpt

Wells Wheels Up: Wetherbee's Airline Weekly

Equity Research

Industry Update — June 18, 2026

Airlines

Good Set Up for Delta on Solid Revenue and Lower Fuel

Trends

Our Call Christian Wetherbee

As we close out 2Q, we think upside to Delta's $1.00-$1.50 EPS range in materializing. Equity Analyst | Wells Fargo Securities, LLC

Christian.Wetherbee@wellsfargo.com | 212-214-8053

Demand trends remain solid and tactical pricing opportunities remain, while lower fuel

Robert H. Salmon, CFAoffsets elevated CASMx.

Equity Analyst | Wells Fargo Securities, LLC

Robert.H.Salmon@wellsfargo.com | 212-214-5016

Recipe for Upside - 2Q demand trends are solid, as higher price has not slowed demand. Ryan Deveikis

Cash bookings remain +15-20% across the curve (close in & into 2H) and Delta seems Associate Equity Analyst | Wells Fargo Securities, LLC

to have found route specific pricing opportunities beyond the initial system-wide fare Ryan.Deveikis@wellsfargo.com | 212-214-8040

increases in late 1Q/early 2Q. Coupled with modestly positive ASMs, we see upside Matthew Hortopan

to consensus' 13% rev growth. Fuel is also below guide (likely sub-$4 net of refinery), Associate Equity Analyst | Wells Fargo Securities, LLC

offsetting higher seq CASMx growth. 2Q EPS of ~$1.75 seems possible. Matthew.F.Hortopan@wellsfargo.com | 212-214-5009

Fuel Recapture Accelerating - Airlines are clear beneficiaries of lower oil and if recent Recent Airline Research:

jet fuel trends continue, fuel recapture levels will improve. Most airlines target ~100%

Wells Wheels Up: Wetherbee's Airline Weeklyrecapture by year-end and Delta is likely to be at/near the high end of its 40-50% range

- Week 23in 2Q. 100% recapture could be pulled forward into earlier 4Q, which sets the table for

100%+ in 1H27.