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

Delta Air Lines has significantly lowered its full-year 2026 profit forecast due to surging jet fuel costs. The airline now expects adjusted earnings per share to fall within a range of $5.10 to $5.60, a sharp decrease from its previous guidance of $6.50 to $7.50. This adjustment comes as the company anticipates absorbing an additional $6 billion in fuel expenses this year.

Despite the impact of rising energy prices, which have been exacerbated by geopolitical tensions in the Middle East, Delta reported record third-quarter revenue of approximately $20.2 billion. The company noted that travel demand remains robust, particularly in premium cabins and among corporate travelers. However, the 62% year-over-year increase in fuel expenses to $4.1 billion for the third quarter has pressured operating margins.

CEO Ed Bastian emphasized the structural durability of the airline, noting that while fuel costs are elevated, the company continues to see strong consumer preference for travel. Delta also expects to generate approximately $2.5 billion in free cash flow for the full year.