Delta Air Lines cuts 2026 profit outlook due to rising fuel costs

Delta Air Lines has lowered its adjusted earnings forecast for 2026 to a range of $5.10 to $5.60 per share. This reduction from the previous guidance of $6.50 to $7.50 per share is primarily driven by rising fuel costs, which the airline expects to increase its annual fuel bill by approximately $6 billion.

Despite the lowered profit outlook, the carrier reported strong revenue growth. For the third quarter of 2026, GAAP revenue reached $20.19 billion, up from $16.67 billion in the same period the previous year. However, operating profit declined from $1.68 billion to $1.45 billion, and the operating margin fell from 10.10% to 7.20%.

CEO Ed Bastian noted that while ticket prices have risen roughly 20% this year, the industry may need to restrain flight growth in 2027 to protect profitability. The company also plans to use $2.5 billion in free cash flow to repay more than $2 billion in debt.