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Delta Air Lines Inc. has lowered its full-year earnings forecast for 2026 as persistently high jet fuel prices increase pressure on the airline industry amid the ongoing conflict in the Middle East.
The Atlanta-based carrier said on Friday that it expects adjusted earnings of $5.10 to $5.60 per share in 2026, sharply below the $6.50 to $7.50 range it reaffirmed in July. The revised outlook is broadly in line with analysts average of $5.44 per share.
Delta expects to incur approximately $6 billion in additional fuel costs this year compared with 2025, as the conflict in the Middle East continues to weigh on energy prices.
“I wouldn’t call that a surprise to anyone, it’s all because of higher fuel prices,” Chief Executive Officer Ed Bastian said of the new range. “If this continues to go higher for longer — which I think it will — as the premium airline in the industry we have the best ability to be able to price for that.”
Following the earnings report, Delta Air Lines shares fell as much as 3.5% in early trading in New York. At 1:18 p.m. EDT, Delta stock was trading lower 1.72%, or $1.41, at $80.73.
Fuel expenses jump 62% as airline faces cost pressures
Delta’s adjusted fuel expenses rose 62% year-on-year to $4.1 billion, reflecting the sharp increase in aviation fuel costs. The airline also reported more than $500 million in additional fuel expenses compared with the forecast it provided in July.
The higher costs have forced the carrier to revise its profit expectations despite continued revenue growth.
Delta’s reduced earnings outlook also highlights the challenges facing smaller and less profitable airlines, which may have fewer resources to absorb a sustained increase in operating expenses.
Delta reported adjusted earnings of $1.72 per share for the third quarter, below the average analyst estimate of $1.82 per share.
However, adjusted revenue increased approximately 16% from a year earlier to $17.6 billion, broadly matching market expectations.
The results indicate that the airline has continued to grow its revenue even as higher fuel expenses put pressure on profitability.
Delta has increasingly relied on higher-paying passengers and its loyalty programme to support revenue growth.
The airline has expanded its network of exclusive Delta One lounges, further differentiated its business-class cabin offerings and strengthened partnerships linked to its SkyMiles loyalty programme.
These initiatives are part of its strategy to attract premium customers and generate revenue beyond standard airfares.
However, the latest earnings forecast shows that higher fuel costs remain a significant challenge, even for an airline seeking to strengthen its premium travel business.
“We continue to see very strong demand, and we see that being sustained in the fourth quarter and the start of next year,” Bastian said in an interview.
“Air travel, even with a higher price point, is still a relative bargain in the consumer economy,” he said. “Airfares are still 10 points lower than inflation.”
The ongoing conflict in the Middle East has contributed to uncertainty in energy markets, leaving airlines exposed to potentially elevated fuel expenses.
For Delta, the projected $6 billion increase in fuel costs compared with 2025 represents a substantial burden on annual earnings.
The revised outlook also raises concerns for the broader airline industry, particularly carriers with thinner profit margins and less capacity to absorb further increases in fuel prices.
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