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Delta Air Slashes Profit Forecast over Fuel-Cost Surge
Delta said fuel costs added more than $500 million above its July forecast, even as third-quarter adjusted revenue rose 16% to $17.59 billion.
- On Friday, Delta Air Lines cut its 2026 annual profit forecast, lowering adjusted earnings per share to $5.10–$5.60 from a July estimate of $6.50–$7.50.
- Delta Chief Financial Officer Erik Snell cited rising jet fuel costs, which averaged $4.50 as of Thursday evening, as the driver for the cut, noting the company will absorb a $6 billion increase in fuel expenses this year.
- Third-Quarter adjusted earnings of $1.72 per share missed Wall Street expectations of $1.75, while fuel expenses surged 62% year-on-year to $4.1 billion and adjusted operating margin fell to 9.4% from 11.1%.
- Despite higher fares, CEO Bastian noted demand remains strong, saying, "The consumer response continues to be quite strong," while the airline's refinery in Trainer, Pennsylvania, provides a partial offset to rising fuel costs.
- Planning to pay down more than $2 billion in debt, Delta expects fourth-quarter revenue to grow approximately 20% over last year, though Deutsche Bank analysts expect the broader industry will not fully recover higher fuel costs until early 2027.
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Delta Stock Drops On Cautious Earnings View In Q4 & FY27 After Weak Q3
Shares of Delta Air Lines, Inc. were losing around 3 percent in the morning trading on the NYSE after the airline reported weak third-quarter earnings, issued cautious earnings view for the fourth quarter and trimmed fiscal 2027 earnings view amid high fuel cost environment.However, the company projects higher revenues for the fourth quarter, extending the strong third-quarter revenue performance.
Coverage Details
Total News Sources47
Leaning Left1Leaning Right5Center25Last UpdatedBias Distribution81% Center
Bias Distribution
- 81% of the sources are Center
81% Center
C 81%
R 16%
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