Delta Air Lines cuts 2026 forecast on fuel surge, but CEO says demand is still strong
Delta Air Lines reported third-quarter earnings and missed Wall Street estimates for the first time in two years.
TL;DR
- Delta Air Lines reduced its 2026 profit outlook due to high fuel prices.
- Full-year earnings per share forecast lowered from $6.50-$7.50 to $5.10-$5.60.
- Free cash flow outlook cut to $2.5 billion from $4 billion.
- CEO Ed Bastian noted strong traveler response and increasing fares.
- Jet fuel prices have nearly doubled year-over-year.
- Fourth-quarter revenue expected to increase by 20% year-over-year.
- Third-quarter adjusted earnings per share missed estimates at $1.72 vs. $1.75 expected.
- Net income decreased 47% year-over-year.
- Delta's refinery in Trainer, Pennsylvania, provides a cost advantage.
- Premium revenue grew 18%, while main cabin sales rose 12%.
- Delta plans to add SpaceX's Starlink satellite internet to its fleet.
- CEO Bastian commented on his company's past talks with SpaceX and Elon Musk's criticism.