Delta Air Lines Inc

Delta Air Lines reported third-quarter adjusted earnings per share of $1.72, missing the consensus estimate of $1.81, while revenue of $20.186 billion beat the consensus estimate of $17.654 billion. The airline lowered its fiscal-year 2026 adjusted earnings per share guidance to $5.10 to $5.60 from $6.50 to $7.50, against a consensus estimate of $5.59, and guided fourth-quarter adjusted earnings per share to $1.15 to $1.65 versus the consensus estimate of $1.51, with sales of $17.527 billion versus the consensus estimate of $17.192 billion. Delta said its business has structural durability in a high-fuel-cost environment and that it will absorb a $6 billion increase in fuel costs, with fourth-quarter guidance assuming fuel at the forward curve as of Oct. 2 and including a refinery benefit of about 40 cents per gallon, resulting in a projected all-in fuel price of about $4.25 per gallon. The report is a read-through for American Airlines, which cut its 2026 outlook in July to adjusted earnings per share guidance of negative 65 cents to positive 65 cents after record second-quarter revenue was almost entirely offset by an 83% jump in fuel costs; unlike Delta, American does not hedge fuel and has no refinery to offset it.

Delta Air Lines cut its guidance after missing third-quarter earnings and revenue estimates, which the airline attributed to rising fuel costs. In a separate development, Microsoft pushed back against the Trump administration's H-1B restrictions. Amazon founder Jeff Bezos also said recently that Blue Origin will hold an IPO in the future. The items were discussed by a market panel that included Business Insider Today executive editor Dan DeFrancesco, Yahoo Finance's Pras Subramanian, SHAKTI partner Liz Harrow, Wall Street veteran Turney Duff, and Zacks Investment Management chief market strategist Brian Mulberry.

Jet fuel prices in New York and Los Angeles are approaching $5 per gallon as Ukrainian strikes on Russian refineries and reduced Middle East shipments of refined products pressure supplies. Jet fuel reached $4.95 per gallon in New York on Thursday, the highest level since late March, while Los Angeles prices climbed to $4.91, the highest since late April. Gulf Coast prices, the U.S. benchmark region, have declined slightly from last month. Delta Air Lines said Friday it expects to absorb approximately $6 billion in additional fuel costs this year compared to 2025, according to its earnings outlook, and projects a fuel price of $4.25 per gallon for the upcoming quarter. Diesel supplies have faced the most pressure both internationally and in the U.S., with stockpiles at their lowest seasonal levels on record, and jet fuel production has fallen back near March levels after increasing between April and September.

Delta Air Lines shares fell about 5% in premarket trading after the carrier reported September-quarter adjusted earnings of $1.72 per share, missing the $1.82 consensus estimate, and lowered its full-year profit outlook to about $5.35 per share. Adjusted revenue rose 16% to $17.59 billion but came in slightly below expectations, with Delta citing elevated fuel costs that surged 62% to $4.14 billion in the quarter; the airline absorbed more than $500 million in additional fuel costs versus its early July guidance and expects $6 billion in higher fuel expenses for the full year. Tesla shares gained about 3.6% after China Passenger Car Association data showed deliveries of Model 3 and Model Y vehicles from its Shanghai factory rose 5% year-over-year to 95,366 units in September, extending its streak of annual sales gains to 11 consecutive months, while third-quarter shipments of Shanghai-built vehicles grew 13.7% even as global deliveries declined 2.1%. Apple shares fell about 2.6% in premarket trading on reports it cut component orders for some iPhone 18 Pro models after weaker-than-expected demand, and telecom stocks dropped sharply after SpaceX agreed to acquire a nationwide low-band spectrum license, with AT&T down 8%, Verizon Communications down 7.8%, and T-Mobile US down 7.6%, while SpaceX shares rose 4.3%. Ambarella shares rose 5.3% following reports that Qualcomm may be working with advisers on a possible deal to acquire the chip designer, speculation circulated via a Betaville alert that follows prior reports Ambarella is in advanced talks with potential buyers including NXP Semiconductors. Wall Street regained some momentum on Friday, with the S&P 500 up 0.4%, the Dow up 0.6%, and the Nasdaq Composite up 0.5%.

Delta Air Lines reduced its full-year earnings outlook, sending its shares down 2.6% in premarket trading, after persistently high jet fuel prices tied to the war in the Middle East pushed fuel costs $500 million higher in its most recent quarter. The carrier said strong travel demand was not enough to offset the higher fuel expense, and unlike European airlines, U.S. carriers do not hedge jet fuel, leaving them more exposed to spot prices. Humana surged after 18 of its Medicare Advantage contracts received ratings of at least four stars, up from seven a year earlier, a jump that can translate into bonuses worth billions of dollars and boost future revenue. CVS shares fell as ratings for some of its largest plans deteriorated, while UnitedHealth shares were little changed in premarket trading. Apple shares slipped after a report that the company cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand.

The current bull market is on track to become the seventh since the 1950s to complete at least four full years on October 12th, according to a new analysis by Truist Co-chief investment officer Keith Lerner. The 119% advance sits near the middle of the pack when measured against every bull market dating back to the 1950s, well below the 401% gain during the 2009 to 2020 cycle and the 582% gain from 1987 to 2000, while the historical average advance in Lerner's measurement period is 184%. Over the 10 prior bull markets, six lasted longer than four years. But early signs of trouble are emerging this earnings season as inflation hits corporate America: Delta said its fuel expense rose by nearly $2 billion year-over-year, a 69% increase, and guided well below consensus on fourth-quarter earnings because of higher fuel prices. PepsiCo cut its full-year profit outlook on Thursday, in part because of inflation hitting all areas of its business, from wheat and corn to the diesel in the trucks that deliver potato chips to supermarkets.

Delta Air Lines posted its first earnings miss in two years, ending a seven-quarter streak of beats, with Q3 earnings of $1.72 per share falling 8 cents or 4.44% short of the Zacks consensus and revenue of $17.59 billion coming in 0.89% below estimates. The company's press release pointed to fuel costs as the problem, up 62% year over year and about $500 million more than the company guided back in July, with those costs now expected to continue into next quarter's numbers and forward estimates moving lower. Ahead of the open, pre-market futures were higher, with the Nasdaq up 210 points, the Dow up 59 points, the S&P 500 up 25 points and the small-cap Russell 2000 up 6 points, while bond yields sat at 5.26% on the 10-year, 4.79% on the 2-year and 5.265% on the 30-year. Oil prices were down modestly despite Iran-backed Houthi rebels in Yemen attacking Saudi Arabia's Riyadh airport and killing three, with WTI trading around $91 per barrel and Brent crude at $103 per barrel, off recent highs but plateauing at four-year highs. At 10 am ET, the preliminary University of Michigan Consumer Survey for October is expected to tick up slightly to 48 from 47.8, still below the 50 threshold that indicates negative consumer sentiment. Next week brings September CPI and PPI data, after last month's year-over-year CPI of 3.4% and PPI of 5.4%, along with the start of big-bank earnings on Tuesday, when JPMorgan is seen gaining 17% on earnings and 12% on revenues, Citigroup 18.75% on earnings and 7% on revenues, and Wells Fargo 7% on earnings and 3% on revenues.

Humana shares surged 13% after the Centers for Medicare & Medicaid Services upgraded its primary Medicare Advantage contract, designated H5216, to four stars for 2027, restoring eligibility for quality bonus payments across roughly 2.4 million members. Kopin rose 4% on an $18.6 million sole-source U.S. Army contract for MicroLED microdisplay work, bringing total program funding to $34 million. SpaceX gained 2% after an $8 billion cash deal with Grain Management for up to 14 MHz of nationwide 800 MHz low-band spectrum, a move that sent T-Mobile US, Verizon Communications and AT&T each down more than 6%. On the losing side, Alignment Healthcare tumbled 18% after its primary California contract fell to 3.5 stars, while Delta Air Lines fell 2% on September-quarter adjusted EPS of $1.72 versus the $1.82 consensus and a lowered full-year outlook, with adjusted fuel expense up 62% to $4.14 billion. Apple slipped 2% after Nikkei Asia reported it cut October component orders for the iPhone 18 Pro and iPhone 18 Pro Max by 15% to 20%.

Delta Air Lines missed third quarter revenue and adjusted earnings estimates, with its quarterly fuel bill hitting $4.1 billion, up 62% from a year ago, prompting the carrier to cut its full-year EPS and cash flow guidance. CEO Ed Bastian told reporters the full impact of the guidance cut was "all fuel," with the annual fuel bill now seen at $6 billion, and Delta projects fourth quarter fuel costs of 4250 cents a gallon, roughly a dollar more than this quarter, though it expects its refinery benefit to more than double to 40 cents a gallon. Delta is the only major US airline that still operates a refinery, which gave it a 13 cent per gallon benefit this quarter against an adjusted fuel price of 361 cents a gallon. Separately, Bloomberg reported that OpenAI expects to reach or exceed $70 billion in annualized revenue by year end, up from approximately $50 billion at the end of September, though the Financial Times reported the figure is likely to be closer to $50 billion, a discrepancy driven by how OpenAI and Anthropic count cloud partner revenue. Anthropic also updated its terms to add a prohibition on sustained and needless abusive or cruel behavior toward its models, meaning users can express frustration but Claude will end a conversation if they are too mean. SpaceX's purchase of a swath of low-band spectrum, aimed at a future terrestrial direct-to-cell network with a presumed target of early 2028 service, sent AT&T, Verizon and T-Mobile shares sharply lower, though JPMorgan said it sees limited near-term risk for US wireless incumbents given the time, infrastructure and capital required to build a competitive network. Nikkei reported that Apple has told some suppliers to cut October component production for the iPhone 18 Pro and Pro Max by at least 15% versus initial requests, with one source describing 15% to 20% cuts for both premium models, after higher memory chip costs pushed prices to $1199 and $1299, each $100 above the preceding models.

Delta Air Lines reported weaker-than-expected third-quarter results and cut its full-year earnings outlook, sending its shares down 4% premarket. The airline earned an adjusted $1.72 per share on revenue of $17.59 billion, below the $1.75 per share and $17.67 billion analysts polled by LSEG had expected, with the company citing higher fuel costs. SpaceX shares rose 4% after Grain Management announced an agreement to sell its nationwide 800 megahertz spectrum portfolio to SpaceX, a move expected to bolster Starlink Mobile's capabilities. The spectrum announcement sent telecom providers lower, with T-Mobile down 7%, AT&T nearly 6% lower and Verizon off more than 5%, while tower stocks American Tower and Crown Castle gained 6% and almost 8% respectively. Humana surged 14% after its largest Medicare Advantage contract saw its rating improve under the Centers for Medicare & Medicaid Services' 2027 Star Ratings, while Alignment Healthcare cratered 23%. Apple fell more than 2% after Nikkei Asia reported the company was cutting component orders for its iPhone 18 Pro, with October production orders for that device and the iPhone 18 Pro Max cut by 15% from original plans.

Delta Air Lines reported that its non-fuel unit costs ticked higher as fuel costs surged, according to a chart-based review of the carrier's results. The airline posted non-GAAP earnings per share of $1.72, missing estimates by $0.04, while revenue of $20.2B beat expectations by $1.28B. The cost pressure comes as Delta's third-quarter setup pits revenue strength against EPS cuts and rising fuel expenses. The charts highlight the margin resilience test facing the airline as it manages the fuel-driven cost increase.

Elon Musk threatened that Delta Air Lines CEO Ed Bastian "will lose his job" after the carrier chose Amazon's new Leo satellite internet for its fleet instead of SpaceX's Starlink. The public feud followed the collapse of a would-be deal between the two corporate giants this spring, and escalated after reports that Bastian told internal meetings, "We do not want to be with Elon Musk. Trust me. If you know his reputation, it's all true what they say about him." Musk also mocked Delta's proprietary Delta Sync portal as "painful, difficult and expensive for their customers," while Delta cited cost and the desire to keep connecting users through that portal as other reasons for declining Starlink. Delta's in-flight Wi-Fi is not due to be upgraded to Amazon Leo until 2028, and Amazon's offering is currently only in enterprise beta testing, though the company predicts it will beat Starlink in both upload and download speeds. The article was originally published by Moneywise.com.

Nvidia, Apple and Microsoft now account for over 21% of the S&P 500, the highest concentration of just three stocks in the index's history, according to new data from Creative Planning. The prior peak came in the mid-1980s, when IBM, AT&T and ExxonMobil made up 13.4% of the S&P 500 at their height. The three tech giants have been lifted by favorable news over the past month, pushing them to that record weighting. Separately, Citigroup analyst Atif Malik raised his price target on AMD to $800 from $575, citing more bullish CPU demand tied to Meta's success, and lifted his outlook for the CPU total addressable market to $300 billion in 2030 from $29 billion in 2025, a 60% compound annual growth rate. Morgan Stanley's Adam Jonas called SpaceX cheap, pointing to catalysts including Starship Flight 15, third-quarter earnings that could give a first look at the economics of SpaceX's internal AI services, Starship Flight 16, Grok 4.8, 4.9 and 5.0 releases, and further Neocloud deals. Melius Research analyst Connor Cunningham warned airlines may cut guidance because of rising fuel costs, a risk he said is not reflected in airline stock prices ahead of Delta's report.

Third quarter earnings season begins this week with results due from Constellation Brands, Levi's, PepsiCo and Delta, and Wall Street analysts are heading in with record optimism. According to new data from FactSet, 60% of S&P 500 stocks now carry a buy rating from Wall Street analysts, the highest level on record, leaving next to no margin for error if results or guidance come up short. The optimism is rooted in the earnings outlook: the S&P 500 is expected to report year-over-year earnings growth of 29.5% for the recently completed third quarter, while analysts are calling for growth of 27.6% in the fourth quarter and 32.4% for 2026. Yahoo Finance Executive Editor Brian Sozzi said he is most concerned about Constellation Brands and PepsiCo given pressured consumer wallets, and flagged Delta's outlook as at risk from soaring fuel prices even though sales trends likely stayed strong.

Alaska Airlines is stepping up its international expansion from Seattle, planning to increase its intercontinental destinations from the current level to at least 15 by 2030 and adding Paris and Athens next year. The push will put much of Alaska's international capacity in direct competition with Delta Air Lines in its home market, with 92% of its scheduled intercontinental seats from Seattle through August 2027 on routes also operated nonstop by Delta, according to Cirium data analyzed by Reuters. Alaska entered the push with a lower cost base than larger rivals, reporting adjusted nonfuel cost of 11.85 cents per seat mile in the first half versus 14.58 cents for Delta, though its operating revenue per seat mile was 16.06 cents against Delta's 21.55 cents. The carrier is adding Boeing 787s, premium cabins and lounges while seeking to increase higher-margin revenue, and plans to join American Airlines' revenue-sharing ventures across the Atlantic and Pacific, pending regulatory approvals. Alaska expects revenue from outside the main cabin to reach nearly 60% by 2030, up from 53% this year.

SpaceX CEO Elon Musk warned that Delta Air Lines could lose customers for declining to offer Starlink internet on its flights. The warning followed a post on X by user John LeFevre noting that rival United Airlines already has 600 or more aircraft equipped with Starlink, roughly 36% of its fleet, with that figure set to reach 100% by the end of 2027, while Delta has none and no plans for it. Delta has instead chosen Amazon's LEO satellite internet service, and said earlier this year it plans an initial installation of Amazon Leo on 500 aircraft beginning in 2028. Musk has said Delta was in talks with SpaceX over Starlink but wanted the service delivered through its proprietary portal, which SpaceX rejected. Separately, NASA Administrator Jared Isaacman praised Starship's first orbital flight on Monday, calling it a gorgeous launch after the rocket reached orbit and deployed 26 Starlink V3 satellites.

US airlines have come out against the idea of increasing passenger flights between the United States and China, after President Xi Jinping proposed on Thursday, September 24, in Washington that the two countries add direct flights to promote travel and trade. Chris Sununu, president of the Airlines for America trade group, known as A4A, which represents major US carriers including American Airlines, United Airlines and Delta Air Lines, said Chinese airlines can still fly eight flights through Russian airspace, while US airlines must take detours, driving up their costs. He said the group has urged officials in the Trump administration not to make concessions, because routing around Russia is no small matter but imposes enormous costs on airlines. Currently, US and Chinese airlines can each operate about 50 round-trip flights a week between the two countries. A4A had earlier opposed a request by Air China to add scheduled flights, arguing that US carriers can barely open routes from the US East Coast to China because they cannot pass through Russian airspace. The restrictions came after the United States barred Russian flights from its airspace in March 2022 following Russia's invasion of Ukraine, and Russia retaliated by banning US airlines from its airspace. Then in 2023, the United States and China agreed that additional Chinese flights would not use routes through Russia. However, the proposal had previously been opposed by other US agencies and was shelved ahead of trade talks with China.

A 40% spike in oil futures since the beginning of August has put fuel costs back in focus for the airline and cruise industries, with oil futures challenging $110 per barrel. Within the cruise industry, Carnival is the most vulnerable because it buys fuel at current spot-market prices rather than using hedges, and an industry study finds a 10% increase in fuel costs per metric ton can lower Carnival's annual net income by as much as $140M. Royal Caribbean employs the most efficient hedging strategy, with as much as 60% of its fuel needs locked in at below-market prices, so the same 10% increase costs it roughly $50M annually in net income, while Viking Holdings is the least exposed on a fuel consumption basis thanks to its smaller fleet and higher-income, relatively inelastic customer base. In the airline industry, fuel hedges have cushioned some larger European carriers, but legacy U.S. carriers have abandoned the strategy altogether; Delta Air Lines has its own oil refinery in Pennsylvania, while American Airlines and United Airlines stopped hedging to capitalize on lower fuel prices prior to February 2026, leaving them vulnerable. According to Bloomberg research, every one-cent increase in the price of a gallon of jet fuel raises American's annual operating expenses by about $46M and United's by $40M annually, and since the start of August the oil spike has translated into an 18% drop in United's share price, 24% for American, and 16% for Delta.

Ryanair, one of Europe's largest low-cost airlines, warns that airfares will keep rising if jet fuel prices remain high into 2027, and that some carriers may struggle to survive. The warning follows an escalation in the U.S.-Iran war, which has heightened fears of supply disruptions in the Strait of Hormuz, a key route for about one-fifth of the world's seaborne jet fuel trade. Jet fuel prices have neared $140 a barrel, and the global average jet fuel price is 74.2% higher than last year's average, according to IATA. Ryanair, which has hedged about 80% of its fuel costs at $67 a barrel, is cutting winter traffic targets by about 2 million passengers to reduce exposure to unhedged fuel. Unhedged U.S. carriers like American, United, and Delta each face about $400 million in additional monthly fuel costs, according to DWU Consulting, and may raise ticket prices or cut routes. Travelers are advised to book sooner rather than later, consider hedged airlines for international trips, and avoid basic economy tickets to maintain flexibility.