Published • loading... • Updated
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.
Insights by Ground AI
Podcasts & Opinions
82 Articles
82 Articles
Ed Bastian’s Premium Strategy at Delta Faces a $6 Billion Fuel Shock
Delta's premium cabins and American Express partnership are bringing in billions, but even those revenue streams can't fully absorb a $6 billion fuel shock. With profit expectations falling and airfares climbing, the airline faces a difficult test of how much more its customers will pay.
·New York, United States
Read Full Article
'I drive a Tesla': After Elon Musk said he’d lose his job, Delta CEO Ed Bastian says there’s 'no tit for tat' as airline unveils earnings miss
Bastian says the Starlink snub was business, not personal, as a 62% fuel jump led to Delta’s first earnings miss in two years.
·New York, United States
Read Full Article
Coverage Details
Total News Sources82
Leaning Left6Leaning Right8Center38Last UpdatedBias Distribution73% Center
Bias Distribution
- 73% of the sources are Center
73% Center
12%
C 73%
15%
Factuality
To view factuality data please Upgrade to Premium
