Delta Air Lines Slashes 2026 Profit Outlook Amid Fuel Crisis

Delta Air Lines Inc. reduced its full-year 2026 adjusted earnings outlook to between $5.10 and $5.60 per share, down from the $6.50 to $7.50 range reaffirmed in July. The Atlanta-based carrier attributed the decline to surging jet fuel prices driven by conflict in the Middle East and the start of the Iran war in February.

For the third quarter, the airline reported net income of $756 million, a 47% decrease from the previous year. These results missed analyst estimates for both adjusted revenue and earnings per share. To combat the crisis, the company is passing a $6 billion increase in fuel costs to travelers through higher fares.

CEO Ed Bastian noted that consumer demand remains strong across all cabins and geographies. This resilience is evident in the company's premium revenue, which grew 18% in the third quarter to $6.82 billion, outperforming main cabin sales. Delta is further attempting to maintain margins through a $1 billion Delta One cabin refresh and its Monroe Energy refinery operations, which provide a partial offset to industry-wide fuel price increases that have risen nearly 70% year-over-year.