Delta Air Lines lowered its profit forecast for 2026 even as demand stayed strong, because fuel costs have risen sharply across the air travel industry, according to Al Jazeera and Reuters. The Atlanta-based carrier said in its third-quarter earnings report on Friday 9 October that it expects its annual fuel bill to jump by $6 billion, with tensions between the United States and Iran cited as having pushed fuel prices up across global aviation.
The Revised Outlook
Al Jazeera reported that Delta cut its full-year adjusted earnings per share guidance to a range of $5.10 to $5.60, down from the $6.50 to $7.50 it forecast in July. The midpoint of the new range is below the average analyst estimate of $5.46, according to data from LSEG cited in the report. Delta’s shares fell by 1.1 per cent from Friday’s opening price in midday trading, and have dropped 4.4 per cent over five days, although Al Jazeera noted they have gained nearly 18 per cent since the start of 2026.
The report said US airlines spent nearly $43 billion on fuel in the first eight months of the year, which is $13.2 billion more than in the same period a year earlier. It described Delta as generally better protected from fuel price swings than rivals because it owns a refinery in Pennsylvania, acquired in 2012.
Demand and Fares
Despite the cost pressure, Al Jazeera said demand remains elevated, with 60 per cent of fourth-quarter flights already booked. Chief executive Ed Bastian said the airline has raised prices by roughly 20 per cent this year and that these could be sustained even if fuel prices fall. He told the Wall Street Journal that holiday bookings are strong and that premium seat revenue rose 18 per cent for the quarter compared with a year earlier. Delta also announced new international routes starting next year, including Seattle-Tokyo, Boston-Venice and Austin-Paris.
Al Jazeera also pointed to signs of strain among lower-income travellers. It cited the University of Michigan’s consumer sentiment survey, released on Friday, in which director Joanne Hsu said sentiment fell steeply this month among lower-income consumers and those with smaller stock portfolios. United Airlines is the next major carrier due to report, on 20 October, according to the report.
Why It Matters
Delta reports first among the major US carriers, so its figures offer an early read on how the industry is coping with higher fuel prices. The results show an airline passing higher costs on through fares and premium cabins while demand holds, but also lowering its profit expectations. Whether other airlines can raise fares as successfully, and whether pressure on lower-income households starts to dent bookings, will be tested as further earnings arrive.
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