Revenue grew on pricing strength and broad-based demand
Total operating revenue increased $3.1B to $19.8B in the June 2026 quarter, driven by $1.7B higher passenger revenue from stronger pricing amid rapid fuel cost increases and broad-based demand across premium, main, corporate and loyalty, plus higher refinery sales and growth in cargo and MRO. Adjusted revenue excluding third-party refinery sales rose $2.2B, or 14%, to $17.7B.
Fuel inflation was the main margin headwind
Total operating expense rose $3.3B, or 23%, to $17.9B in the quarter, led by a $1.7B increase in aircraft fuel and related taxes. Management said this was primarily due to an 80% increase in average jet fuel purchase price, while total CASM rose 21% and CASM-Ex increased 6.8%, contributing to operating income declining to $1.9B.
Non-operating income declined sharply due to investment mark-to-market
Total non-operating income fell to $145M from $472M in the June 2025 quarter, primarily because of lower mark-to-market gains on certain equity investments. The filing shows gain on investments, net was $349M in the quarter versus $735M a year earlier.