Delta Air Lines Cuts Profit Forecast Amid Rising Fuel Costs
Delta Air Lines reported its first earnings miss against Wall Street estimates in two years and reduced its full-year profit forecast for 2026 due to surging fuel prices. Despite the cut, CEO Ed Bastian noted strong demand across all travel segments as higher fares have not deterred customers. Delta now expects adjusted EPS between $5.10 and $5.60 for the year, down from a previous range of $6.50–$7.50 when fuel prices were lower. The airline also lowered its free cash flow outlook to $2.5 billion from up to $4 billion in July. Delta reported third-quarter adjusted earnings per share of $1.72 versus an expected $1.75 and revenue slightly below estimates at $17.59 billion. Fuel costs have risen by over $6 billion this year, driven largely by the war with Iran that began in February. Despite these challenges, Delta remains the most profitable U.S. airline and reported a 20% expected rise in fourth-quarter revenues compared to last year when adjusted for refinery benefits.
Tickers: $DAL
Topics: airlines fuel_prices profit_forecast