Delta Cuts 2026 Profit Forecast to $5.10-$5.60 a Share as Fuel Costs Add $6 Billion

Delta Air Lines lowered its full-year profit forecast on Friday, cutting its 2026 adjusted earnings outlook to $5.10 to $5.60 a share from the $6.50 to $7.50 a share it had projected in July, according to Reuters.

The airline said fuel costs are now expected to add $6 billion to its bill in 2026, an increase of $2 billion from its earlier projection, as the war involving Iran has pushed jet fuel prices higher worldwide, according to Reuters. Delta’s shares fell 2.5% in early trading after the announcement, according to Reuters.

Delta was the first major global carrier to report third-quarter results. Its fuel spending for the quarter rose 62% from a year earlier to $4.1 billion, more than $500 million above its July forecast, according to Reuters. Chief Financial Officer Erik Snell told reporters that fuel was the reason for the forecast cut, citing higher prices for both crude oil and refined jet fuel since the summer, according to Reuters.

Strong demand has not erased the fuel bill

Third-quarter adjusted earnings came in at $1.72 a share, just below the $1.76 average estimate compiled by LSEG, and Delta’s adjusted operating margin narrowed to 9.4% from 11.1%, according to Reuters. For the full year, Delta now expects $4.5 billion in adjusted pre-tax profit, according to Reuters.

The pressure is industry-wide. U.S. airlines spent $42.9 billion on fuel for scheduled flights in the first eight months of 2026, nearly $13.2 billion more than a year earlier even though they used slightly less fuel, according to Bureau of Transportation Statistics figures reported by Reuters. Average U.S. airline fares were about 25% higher than a year earlier in the five months through August, according to the Bureau of Labor Statistics consumer price index reported by Reuters.

Delta said travel demand remains strong, with almost 60% of the fourth quarter already booked, and it expects revenue to grow about 20% from a year ago, according to Reuters.

A refinery offers only partial protection

Delta owns a refinery outside Philadelphia that Snell expects to produce $700 million in profit this year, giving the airline a partial offset that other major U.S. carriers do not have, according to Reuters. Even with that benefit, Delta expects its fuel cost to rise to $4.25 a gallon in the fourth quarter from $3.61 in the third, according to Reuters.

United Airlines, American Airlines and Southwest Airlines are scheduled to report results later this month, according to Reuters. Analysts are watching whether carriers can keep raising fares enough to cover elevated fuel costs without weakening demand, according to Reuters.

Reporting based on coverage by Reuters.