Delta cuts full-year 2026 earnings outlook amid fuel costs

By Katherine Hamilton and Kelly Cloonan Delta Air Lines cut its earnings outlook after another quarter of persistently high fuel costs. The airline said Friday it now expects full-year earnings per share to be $5.10 to $5.60, down from its previous guidance range of $6.50 to $7.50. Delta said it expects to absorb an additional $6 billion in fuel costs this year. Shares fell about 4% in premarket trading before paring some of those losses after market open. The stock was recently down 1.9% at $80.60. In the current fourth quarter, Delta expects earnings per share of $1.15 to $1.65. Analysts surveyed by FactSet are projecting $1.43 a share. Revenue is expected to increase by about 20% from the same period a year ago. Estimates for the current quarter are based on an expected fuel price of $4.25 a gallon, and a refinery benefit of 40 cents per gallon, the company said. Chief Executive Ed Bastian said the guidance is a sign of increasing resilience in the midst of elevated fuel prices. "That's a picture of structural durability you have not seen in prior cycles or fuel spikes within this industry," Bastian said during a call with analysts. With this year's fuel spike, U.S. airlines are recovering higher fuel costs more quickly due to resilient demand and a greater focus on profitability, he said. Wealthy Americans are increasingly prioritizing travel, he said, with continued strength in premium growth. Main cabin trends, meanwhile, continue to improve, he said. Third-quarter net income slid to $756 million, or $1.15 a share, from $1.42 billion, or $2.17 a share, a year earlier. Adjusted earnings per share were $1.72, behind the $1.77 anticipated by analysts, according to FactSet. Total operating revenue rose 21% to $20.19 billion. Analysts surveyed by FactSet had forecast revenue of $17.65 billion. Delta's refinery contributed $2.6 billion in sales, a 76% jump from the year before. Excluding refinery sales, revenue was $17.59 billion. The company recorded $4.1 billion in adjusted fuel costs in the quarter, up 62% from the year before. The cost of fuel was $500 million higher in the quarter compared with guidance shared in July. Dow Jones, publisher of The Wall Street Journal, has a commercial agreement with Delta, including news content on flights. Write to Katherine Hamilton at katherine.hamilton@wsj.com and Kelly Cloonan at kelly.cloonan@wsj.com (END) Dow Jones Newswires October 09, 2026 10:53 ET (14:53 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters. Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.