Delta lowers 2026 profit outlook as fuel costs surge

Delta Air Lines cut its 2026 profit forecast on October 9, 2026, citing fuel costs rising faster than gains from higher fares and steady demand. The Atlanta-based airline now expects adjusted earnings of $5.10 to $5.60 per share, down from a July projection of $6.50 to $7.50. Annual fuel costs are expected to exceed 2025 levels by $6 billion.

Chief financial officer Erik Snell said Delta spent over $500 million more on fuel in the third quarter than budgeted in July. The airline still expects adjusted pretax profit of about $4.5 billion.

Third-quarter adjusted revenue hit a record $17.6 billion, up 16% year over year, while capacity was little changed. Revenue in the current quarter is forecast to rise roughly 20%, with slightly more seats offered but fewer in economy.

Premium cabin revenue climbed 18% as the airline flew 6% more seats in those cabins, charged more and filled a larger share. Economy revenue per available seat mile rose 17% even as economy seating was reduced.

Adjusted net income was $1.13 billion, or $1.72 per share, up 2%. Reported net income was $756 million, or $1.15 per share, a 47% decline. Adjusted figures exclude investment gains and losses and fuel-hedging items.

Cost pressure lowered the adjusted operating margin to 9.4% from 11.1% a year earlier. The adjusted fuel bill rose 62% to $4.1 billion. Non-fuel cost per available seat mile increased 7.3%, which Delta attributed mainly to crew and revenue-related expenses spread over less capacity growth than planned, with summer storms also a factor.

For the fourth quarter, Delta projects an adjusted fuel price of about $4.25 per gallon, up from $3.61 in the third quarter.