Why it matters
- Delta now expects 2026 adjusted earnings of $5.10 to $5.60 a share, down from the $6.50 to $7.50 it affirmed in July, and free cash flow of about $2.5 billion, down from $3 billion to $4 billion.
- Third-quarter adjusted revenue hit a September-quarter record of $17.6 billion, up 16%, and adjusted EPS was $1.72, but adjusted fuel expense jumped 62% to $4.1 billion.
- Delta shares were down about 2.6% in premarket trading at about 8:50 a.m. ET on Friday, according to Yahoo Finance data.
Updated Oct. 9: Delta shares closed at $82.17 on Friday, up 3 cents, or 0.04%, from Thursday's close of $82.14, after trading down about 2.6% before the bell, according to Yahoo Finance data.
Delta Air Lines cut its 2026 profit forecast on Friday, Oct. 9, and now expects adjusted earnings of $5.10 to $5.60 a share, down from the $6.50 to $7.50 range it affirmed on July 10. The airline said in its third-quarter earnings release, filed with the SEC, that it expects to absorb a $6 billion increase in fuel costs this year despite record revenue.
At the midpoint, the new range is about 24% below the old one. Delta also lowered its free cash flow outlook to about $2.5 billion, from $3 billion to $4 billion.
Delta shares traded at about $80.02 at 8:53 a.m. ET in premarket trading, down about 2.6% from Thursday's close of $82.14, according to Yahoo Finance data.
What did Delta report for the third quarter?
Adjusted operating revenue rose 16% from a year earlier to $17.6 billion, a record for a September quarter, on flat capacity, Delta said. Adjusted earnings were $1.72 a share, in line with last year. On a GAAP basis, operating revenue was $20.2 billion and earnings were $1.15 a share.
| Measure | Q3 2026 |
|---|---|
| Adjusted operating revenue | $17.6 billion (+16%) |
| Adjusted pre-tax income | $1.5 billion |
| Adjusted EPS | $1.72 |
| GAAP EPS | $1.15 |
| Adjusted fuel expense | $4.1 billion (+62%) |
| Adjusted fuel price | $3.61 a gallon (+60%) |
Source: Delta Air Lines earnings release, Oct. 9, 2026.
Premium revenue rose 18%, cargo revenue rose 29% and total loyalty revenue rose 18%, the company said. Delta said payments from its American Express card partnership grew 15% and are on track to top $9 billion for the year.
Why did Delta cut its profit forecast?
Fuel is the main reason. "For the full year, we expect to generate a pre-tax profit of roughly $4.5 billion, absorbing a $6 billion increase in fuel costs," Chief Executive Ed Bastian said in the release. Chief Financial Officer Erik Snell said Delta absorbed more than $500 million of higher fuel costs in the third quarter compared with its early-July guidance.
Non-fuel unit costs also rose 7.3% from a year earlier, which Delta blamed mainly on higher crew and revenue-related costs and slower-than-planned capacity growth.
What is Delta's outlook for the fourth quarter?
Delta expects December-quarter revenue to grow about 20% from a year earlier and adjusted earnings of $1.15 to $1.65 a share. That guidance assumes an all-in fuel price of about $4.25 a gallon, based on the forward curve as of Oct. 2. Delta said it plans to pay down more than $2 billion of debt in 2026.
The forecast cut comes as oil prices stay high. Brent crude settled at $104.28 a barrel on Thursday, as we reported in Brent Oil Settles Up 4% at $104.28 on Iran Fears and Hurricane Isaias. For more company results, see our companies section and the energy section.
