Delta Air Lines has revised its profit forecast downward due to a projected increase in annual fuel expenses by $6 billion, as indicated in its third-quarter earnings report released on October 6, 2026. The airline attributed this increase to rising fuel prices influenced by ongoing geopolitical tensions, particularly between the United States and Iran.
In the first eight months of 2026, U.S. airlines collectively spent nearly $43 billion on fuel, marking a $13.2 billion increase compared to the same period in 2025. Delta adjusted its earnings outlook for the year to an expected adjusted earnings per share of $5.10 to $5.60, a decrease from its previous forecast of $6.50 to $7.50. The midpoint of this new range is below analysts' average estimate of $5.46, according to LSEG data.
Following the announcement, Delta's stock decreased by 1.1 percent during midday trading, and it has seen a decline of 4.4 percent over the past week. However, the stock has increased nearly 18 percent since the beginning of the year.
CEO Ed Bastian noted that the airline has raised ticket prices by approximately 20 percent this year and indicated that these prices could remain stable even if fuel costs decrease. Despite the rising costs, demand for air travel remains strong, with 60 percent of flights for the fourth quarter already booked. Delta has also announced new international routes, including Seattle to Tokyo, Boston to Venice, and Austin to Paris, set to begin next year.
Bastian also mentioned that holiday bookings are robust, with premium travel increasing. Premium seat revenue rose by 18 percent for the quarter compared to the same period last year. However, lower-income consumers are reportedly reducing their travel plans due to declining consumer sentiment, as indicated by the University of Michigan's Surveys of Consumers.
The report highlighted that 51 percent of Americans earning less than $100,000 annually indicated in May that travel would be among the first expenses they would cut in response to rising prices, according to a Deloitte report. United Airlines is expected to report its earnings next, with results scheduled for release after the market closes on October 20, 2026. United's stock also experienced a decline, falling 0.8 percent from Friday's opening price.