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Delta Air Slashes Profit Forecast over Fuel-Cost Surge
The airline said strong demand and higher fares are offsetting some of the hit, but quarterly fuel expenses rose 62% to $4.1 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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·New York, United States
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Total News Sources66
Leaning Left5Leaning Right7Center34Last UpdatedBias Distribution74% Center
Bias Distribution
- 74% of the sources are Center
74% Center
11%
C 74%
15%
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