2Q26 Results/Guide Quick Takes

Research evidence excerpt

2Q26 Results/Guide Quick Takes

Update

July 10, 2026 12:16 PM GMT

Morgan Stanley & Co. LLCMDelta Air Lines, Inc. | North America Ravi Shanker

Equity Analyst

2Q26 Results/Guide Quick Ravi.Shanker@morganstanley.comMadison J Pasterchick +1 212 761-6350

Research Associate

Madison.Pasterchick@morganstanley.com +1 212 761-3787

Takes Nancy Hipp

Nancy.Hipp@morganstanley.com +1 212 761-1311

We believe DAL's solid 2Q print, strong 3Q guide and restored FY guide despite

extreme disruption in 2Q should pave the way for the stock to resume its path to $10 Delta Air Lines, Inc. (DAL.N, DAL UN)

normalized EPS and multiple rerating to 15x. We are particularly encouraged that Airlines | United States of America

mgmt reiterated that they "are confident in the sustainability of yield and revenue Stock Rating Overweight

Industry View Attractive

strength" and saw 3Q "revenue growth improving sequentially" – both key tests that Price target $115.00

the market was looking for, even if we would like the focus to be more on overall Shr price, close (Jul 9, 2026) $89.00

Mkt cap, curr (mm) $58,337

margins than RASM specifically. The 3Q jet fuel guide was slightly higher than cons. 52-Week Range $95.67-49.84

and we believe this will be a volatile line going forward for obvious reasons but we

expect fuel to continue to moderate toward the high-$2s over time (with refinery

providing a benefit if fuel does spike). Overall, we believe DAL delivered what the

market wanted to see and sets a marker for the rest of the group (even with a higher

bar in recent weeks).

DAL reported 2Q26 EPS of $1.56, which came in below MSe $1.72 but above

cons. $1.49. Adj. Operating Revenues were $17.666 bn, which came in below MSe

$17.815 bn but above cons. $17.547 bn and up ~14% y/y. Adj. Operating Income was

$1,564mm vs.