Delta Cuts 2026 Earnings Outlook As $6B Fuel-Cost Surge Weighs On Profit

Delta Air Lines cut its 2026 adjusted EPS outlook to $5.10–$5.60 as it faces a $6 billion increase in fuel costs.

• The airline cut its full-year adjusted EPS guidance to $5.10–$5.60 from $6.50–$7.50.
• Delta expects December-quarter adjusted EPS of $1.15–$1.65 and total revenue growth of approximately 20%, while forecasting around $2.5 billion in full-year free cash flow.
• CEO Ed Bastian reiterated Delta’s long-term financial priorities, including mid-teens margins and returns, durable free cash flow and gross leverage of approximately one times.

Delta Air Lines (DAL) shares were in focus on Friday after the company reported third-quarter results, with adjusted diluted earnings per share falling short of analysts’ expectations and the airline cutting its full-year 2026 earnings outlook amid rising fuel costs.

DAL shares fell about 4% in premarket trading on Friday, at the time of writing.

Delta reported adjusted diluted earnings per share (EPS) of $1.72 and adjusted operating revenue of $17.59 billion for the September quarter, compared with Fiscal.ai estimates of $1.76 per share and $18.92 billion in revenue, respectively.

CEO Says Travel Demand Remains Strong

CEO Ed Bastian stated in the earnings report that demand remains strong, supported by consumers’ growing preference for experiences and travel.  

Bastian said Delta delivered $1.5 billion in pretax profit in the September quarter, matching the year-earlier period, and generated $1.9 billion in free cash flow year to date, while absorbing a $6 billion increase in fuel costs for 2026. 

“Our focus remains on profitable growth and delivering against our long-term financial framework, including mid-teens margins and returns, durable free cash flow and gross leverage of approximately one times,” he said.

Higher Fuel Costs Drive Lower Guidance

Delta’s adjusted fuel expense rose 62% year over year to $4.14 billion in the September quarter. Its average adjusted fuel price increased 60% to $3.61 per gallon, while its adjusted operating margin narrowed to 9.4% from 11.1% a year earlier.

For full-year 2026, Delta lowered its adjusted EPS outlook to $5.10–$5.60 from its previous range of $6.50–$7.50. The company expects full-year pretax profit of approximately $4.5 billion despite the higher fuel costs.

Delta Provides December-Quarter Guidance

For the December quarter, Delta expects total revenue to increase approximately 20% year over year. The airline forecasts adjusted EPS of $1.15–$1.65 and an adjusted operating margin of 7%–9%.

For full-year 2026, Delta expects approximately $2.5 billion in free cash flow and plans to pay down more than $2 billion in debt.

The company said its September-quarter results and outlook reflect its ability to operate in an elevated fuel-cost environment while continuing to focus on profitable growth.

Delta Reviews Riyadh Service

Separately, Bastian told CNBC that Delta was weighing whether to proceed with its planned Atlanta–Riyadh route amid security concerns following attacks in Saudi Arabia. The service is scheduled to begin on October 23.

“Safety is going to make the call,” Bastian reportedly said, adding that the airline would inform customers of its decision soon.

Retail View On DAL

Retail sentiment on Stocktwits for $DAL was ‘Extremely Bullish,’ with ‘High’ message volume over the past 24 hours. The stock was also among the platform’s trending tickers at the time of writing.

DAL shares have gained more than 17% year to date.

For updates and corrections, email newsroom[at]stocktwits[dot]com<