Delta CEO Sees No Cracks in Travel Demand, but Sky-High Fuel Bills Spoil the Party

Delta Air Lines, Inc. (NYSE: DAL ) stock fell Friday after the airline reported third-quarter 2026 results that beat Wall Street's revenue estimate but missed adjusted earnings expectations. The company also cut its full-year earnings outlook as higher fuel costs continued to pressure profitability. Revenue Rises, but Earnings Miss Estimates Delta reported adjusted earnings of $1.72 per share, missing the $1.81 estimate. Revenue rose 21% year over year to $20.186 billion, beating the $17.654 billion estimate. Adjusted operating revenue climbed 16% to a record $17.585 billion, while passenger revenue increased 15% to $15.534 billion. Premium-ticket revenue rose 18% to $6.818 billion, while Main Cabin revenue grew 12% to $6.802 billion. However, adjusted operating margin narrowed to 9.4% from 11.1% a year earlier. Higher Fuel Costs Squeeze Margins Adjusted fuel expenses surged 62% to $4.143 billion as the average fuel price increased 60% to $3.61 per gallon. CFO Erik Snell said the company's quarterly earnings absorbed more than $500 million in additional fuel costs compared with its early July forecast. Meanwhile, operating cash flow totaled $1.713 billion, while free cash flow reac