What CEOs Are Saying: Planes, Jeans, Sushi
Three earnings calls from the past week: Delta Air Lines, Levi Strauss, and Kura Sushi
In this edition
• The decline of ultra-low-cost carriers
• No growth from AI?
• Tackling ERP overload
• Turning a covered logo into publicity
• More sushi for less money
Quote of the week
“We try to stay in our lane in terms of our strategy. We’re not out there trying to compete on someone else’s strategy. We’re focused on Delta’s strategy.”
—Delta CEO Ed Bastian, on capacity planning for 2027
RIP Spirit Airlines. The ultra-low-cost carrier filed for bankruptcy and shut down in May, a casualty of the jet fuel spike that followed the war in the Middle East. But Spirit is far from the only airline affected. The International Air Transport Association (IATA) now expects industry profits to be cut roughly in half this year, with jet fuel averaging about 70% more than in 2025.
On Friday, Delta CEO Ed Bastian led an earnings call in which he got into how all this has affected his company. He explained how the world has changed for carriers, especially those on the lower end—fuel hedges are largely a thing of the past, and other costs (labor, airports, etc.) are growing too. Hence Delta’s commitment to “stay in its lane” in terms of strategy rather than making any moves to fill the gap left by Spirit. He also seemed upbeat around the idea that higher ticket prices would stick even after fuel costs fall.
Along with Delta’s call, we’ll also look at Levi Strauss, which raised guidance while sitting on a tariff refund it refuses to count, and Kura Sushi, the conveyor belt sushi chain whose competitors raised prices five times faster than it did.
Here’s what the CEOs had to say.
Delta Air Lines (DAL)
Q2 2026 Earnings Call
Results: strong, with record revenue up 14%, EPS of $1.56 beating estimates, and full-year guidance affirmed despite a multibillion-dollar fuel headwind.
Delta is the most profitable US airline, and 61% of its revenue now comes from sources other than main cabin tickets: premium seats, its American Express partnership, cargo, and maintenance work for other carriers.
Delta raised fares to cover record fuel costs and expects them to stick
Fuel expense hit $4.4 billion in the quarter, up nearly $2 billion year over year and the highest in Delta’s history. The industry passed the cost through in fares faster than in any previous fuel cycle.
“High fuel prices have proven to be the most powerful catalyst for change in our industry.”
—Ed Bastian
Bastian argued the new prices will hold even if fuel keeps falling: airfares have risen 10 to 15 points less than overall inflation since COVID, and by Delta’s estimate, the low end of the market still needs another 5% in fare increases just to break even at current fuel prices.
