Delta Cuts 2026 Earnings Forecast as Fuel Costs Rise

Delta Air Lines cut its 2026 adjusted earnings forecast after third-quarter fuel expenses rose sharply, saying higher fuel costs are expected to add about $6 billion to its bill this year. The airline lowered its projected earnings to $5.10 to $5.60 per share, from the $6.50 to $7.50 range it gave in July. The revised midpoint, $5.35 per share, is nearly a quarter below the previous midpoint. Delta’s chief financial officer, Erik Snell, attributed the reduction to higher crude oil and refined jet fuel prices. The company also forecast about $4.5 billion in adjusted pretax profit for 2026. Delta’s third-quarter fuel expense reached $4.1 billion, up 62% from a year earlier and more than $500 million above its July expectation. Adjusted revenue increased 16% to about $17.6 billion, but the adjusted operating margin fell to 9.4% from 11.1%. The company reported adjusted earnings of $1.72 per share for the quarter. Separately, its net income was $756 million, down 47% year over year. The airline said travel demand remains strong. Delta expects fourth-quarter revenue to grow about 20% from a year earlier, with nearly 60% of the quarter already booked, Snell said.