Delta Air Lines cuts 2026 profit outlook as fuel costs remain high

Delta Air Lines cut its 2026 adjusted earnings forecast on October 9 to $5.10–$5.60 a share from $6.50–$7.50, citing high fuel costs.

The airline reduced its full-year free cash flow outlook to approximately $2.5 billion. In July, it expected as much as $4 billion. Chief executive Ed Bastian told CNBC that higher fares were not stopping bookings, with demand holding across cabins and among business and leisure customers.

Delta's official report lists third-quarter adjusted earnings of $1.72 a share. Adjusted revenue reached $17.585 billion, up 16% year on year. These measures exclude certain items, including sales of refinery products to third parties.

GAAP net income was $756 million, compared with $1.417 billion a year earlier, a 47% decline. Earnings under that accounting measure were $1.15 a share. The adjusted figures therefore differ from the reported GAAP results.

For the fourth quarter, Delta forecasts revenue growth of approximately 20% and adjusted earnings of $1.15–$1.65 a share. It assumes an average fuel price near $4.25 a gallon, including benefits from its refinery in Trainer, Pennsylvania.

Bastian also addressed Delta's choice of Amazon Leo satellite internet. Following criticism from Elon Musk, he said he did not view the matter as a personal dispute. He said discussions with SpaceX took place six years ago, but the company was not ready to support the necessary scale at that time.