Business · Companies · 2 days ago
Delta cuts 2026 profit forecast as fuel costs rise
Delta Air Lines, based in Atlanta, has lowered its forecast for 2026 earnings.
It expects fuel costs to be $6 billion higher this year as fuel prices rise amid the war involving the United States and Iran.
Delta now expects adjusted earnings of $5.10 to $5.60 per share, down from its July forecast of $6.50 to $7.50.
Strong travel demand and higher ticket prices have not been enough to offset the added fuel expense.
The airline says nearly 60 percent of its fourth-quarter flights are already booked, and it has raised prices this year.
Delta also owns a refinery near Philadelphia that it says partly offsets higher fuel costs.
The key question for airlines is whether passengers will keep accepting fare increases if fuel remains expensive; United, American and Southwest are due to report later this month.
Delta Air Lines cut its 2026 adjusted earnings-per-share forecast to $5.10–$5.60, down from its July forecast of $6.50–$7.50.
The airline said higher fuel costs are expected to add US$6 billion to its 2026 fuel bill.
Delta reported strong travel demand, with almost 60 percent of fourth-quarter flights already booked.
The fuel-price surge is linked in the reports to tensions or war involving the United States and Iran.
Delta said it has raised prices this year, while analysts are watching whether further fare increases could deter travellers.
- Who
- Delta Air Lines, the Atlanta-based airline.
- What
- It cut its 2026 adjusted earnings-per-share forecast to $5.10–$5.60 as fuel costs rose.
- When
- Friday, October 9, 2026.
- Where
- Delta is based in Atlanta; the fuel-price increase is affecting the global aviation sector.
- Why
- Higher fuel prices are expected to add US$6 billion to Delta’s 2026 fuel bill.
This story does not have two clearly opposing sides.
All of it’s fuel,
We have a refinery that gives us an offset, a partial offset to fuel prices that no one else does,
At the moment, those higher prices have not destroyed any demand and it remains to be seen how long that will last.
Delta forecast adjusted annual earnings of $6.50 to $7.50 a share.
US airlines spent US$42.9 billion on fuel, nearly US$13.2 billion more than a year earlier.
Delta reported third-quarter results and lowered its 2026 adjusted earnings forecast.
United Airlines was scheduled to report results after the market close.
- 2026 earnings forecast
- Adjusted earnings of $5.10–$5.60 a share
- Expected fuel-cost increase
- US$6 billion
- Third-quarter fuel expenses
- US$4.1 billion, up 62 percent from a year earlier
- Fourth-quarter bookings
- Almost 60 percent of flights already booked
- Refinery
- Delta owns a refinery outside Philadelphia, bought in 2012
Sources
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