Delta Air Lines lowered its 2026 profit forecast on October 9 as soaring fuel costs outweighed higher ticket prices and resilient travel demand. The Atlanta-based airline now expects adjusted earnings of $5.10 to $5.60 per share, compared with $6.50 to $7.50 forecast in July, according to its results announcement and Reuters reporting.
The carrier expects its annual fuel bill to increase by about $6 billion from 2025. Reuters reported that this is $2 billion more than previously anticipated, as the Iran war drives jet fuel prices higher worldwide. The new earnings range represents a reduction of nearly a quarter at the midpoint.
Third-quarter fuel expenses rose 62% from a year earlier to approximately $4.1 billion, Reuters reported. Chief Financial Officer Erik Snell said the airline spent more than $500 million more on fuel than it had expected in July. Axios reported that adjusted fuel costs averaged $3.61 per gallon, including a benefit from Delta's own refinery.
Demand nevertheless remained strong. According to Delta's announcement and AeroTime's reporting, adjusted third-quarter revenue reached a record $17.6 billion, up 16% from a year earlier, with little change in overall flight capacity. Chief Executive Ed Bastian said consumers continued to favour travel and experiences, helping support the airline's business despite the cost pressure.
The results highlight the limits of higher fares in offsetting the energy shock. Reuters reported that analysts see a risk that further ticket-price increases could test passengers' willingness to spend. Delta's reduced outlook shows that strong sales alone have not protected expected earnings from the increase in fuel expenses.
For the December quarter, Delta expects revenue growth of about 20%, according to its release. The company projects approximately $2.5 billion in full-year free cash flow and plans to repay more than $2 billion of debt in 2026. These remain company forecasts, with fuel costs a central uncertainty for the airline's financial outlook.
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