Delta Air Lines reported third-quarter 2026 results that beat Wall Street's revenue estimate but missed adjusted earnings expectations, and cut its full-year earnings outlook as higher fuel costs pressured profitability. Adjusted earnings came in at $1.72 per share, missing the $1.81 estimate, while revenue rose 21% year over year to $20.186 billion, beating the $17.654 billion estimate. Adjusted operating revenue climbed 16% to a record $17.585 billion, with passenger revenue up 15% to $15.534 billion, premium-ticket revenue up 18% to $6.818 billion, and Main Cabin revenue up 12% to $6.802 billion, though adjusted operating margin narrowed to 9.4% from 11.1% a year earlier. Adjusted fuel expenses surged 62% to $4.143 billion as the average fuel price rose 60% to $3.61 per gallon, and CFO Erik Snell said quarterly earnings absorbed more than $500 million in additional fuel costs versus the early July forecast. Delta lowered its full-year adjusted earnings forecast to $5.10-$5.60 per share from $6.50-$7.50, against the $5.59 estimate, and guided fourth-quarter adjusted earnings of $1.15-$1.65 per share versus the $1.51 estimate, with revenue of $17.527 billion and an operating margin of 7%-9%, assuming fuel costs of about $4.25 per gallon. CEO Ed Bastian said Delta still expects approximately $4.5 billion in full-year pretax profit despite absorbing a $6 billion increase in fuel costs, along with about $2.5 billion in free cash flow and more than $2 billion in debt repayment this year.
Delta Air Lines IncDelta cut its full-year earnings forecast and missed adjusted EPS estimates as surging fuel costs squeezed margins.
