Delta Air Lines has cut its profit forecast for 2026 and missed Wall Street’s earnings estimates for the first time in two years. The airline blames a $6 billion rise in fuel costs, but its chief executive says passengers are still paying higher fares.

Delta Air Lines has lowered its profit forecast for 2026 after high fuel prices cut into its third-quarter earnings, CNBC reported on Friday, October 9.

The airline missed Wall Street’s earnings estimates for the first time in two years.

The New Forecast

  • Full-year adjusted earnings: $5.10 to $5.60 per share, down from the $6.50 to $7.50 it forecast in July, when fuel prices were lower
  • Free cash flow: $2.5 billion for the year, down from as much as $4 billion expected in July
  • Fourth-quarter revenue: expected to rise 20 percent from a year earlier

Delta’s guidance for the fourth quarter was also below analysts’ estimates.

Third-Quarter Results

  • Adjusted earnings per share: $1.72, against the $1.75 analysts expected
  • Adjusted revenue: $17.59 billion, against $17.67 billion expected
  • Net income: $756 million, or $1.15 a share, down 47 percent from $1.42 billion, or $2.17 a share, a year earlier
  • Operating revenue: up 21 percent to $20.19 billion

The analyst estimates are the consensus compiled by LSEG, as cited by CNBC.

The Fuel Problem

Jet fuel is the airline industry’s second-largest cost after labour. Prices have surged since the Iran war began in February.

Delta faces a $6 billion increase in fuel costs this year, according to CNBC, and is passing much of it on to passengers.

The airline has one advantage over its rivals: it owns a refinery in Trainer, Pennsylvania, which turns crude oil into jet fuel and other products.

‘Quite Strong’ Demand

Chief executive Ed Bastian said higher fares are not putting travellers off.

“The consumer response continues to be quite strong. We’re seeing it across all channels, all cabins of service, all geographies, business, leisure,” he told CNBC.

The latest US inflation reading, for September, showed airfares up more than 23 percent from a year earlier.

Premium Seats Lead

Delta’s more expensive seats continued to grow faster than the rest of the aircraft.

Premium revenue rose 18 percent in the quarter to $6.82 billion. Main cabin sales rose 12 percent to $6.8 billion, which means the two are now almost equal in size.

Why It Matters

Delta is the most profitable airline in the United States and the first to report results for the third quarter, which includes the busy summer travel season. Its figures are an early signal of how the rest of the industry has coped with the rise in fuel prices.

Image: A Delta Air Lines Airbus A350, February 2026. Photo by 4300streetcar via Wikimedia Commons, CC BY 4.0.