Delta Air Lines cut its annual profit forecast by nearly a quarter on Friday, blaming a fuel bill expected to swell by $6 billion this year as the Iran war drives jet fuel prices sharply higher. The downgrade, the carrier’s first cut to its 2026 outlook this year, sent its shares down in early trading.
Delta now expects adjusted earnings of $5.10 to $5.60 a share, down from the $6.50 to $7.50 range it forecast in July, with the new midpoint below analysts’ average estimates. The airline, the first major global carrier to report third-quarter results, said fuel expenses for the quarter rose 62 percent from a year earlier to $4.1 billion — more than $500 million above its July forecast. Its adjusted operating margin narrowed to 9.4 percent from 11.1 percent.
Asked what drove the cut, the chief financial officer’s answer was blunt: all of it is fuel, reflecting increases in both crude oil and refined jet fuel prices since the summer. Airlines have already raised fares substantially this year, and analysts warn that further increases could test travelers’ willingness to keep spending — the central question hanging over the industry’s results season.
Delta is not alone in retrenching. The carrier has already trimmed capacity growth and suspended seasonal routes while fuel costs stay elevated. Whether passengers absorb another round of fare increases may decide how much of the industry’s post-pandemic earnings power survives the fuel shock.
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