Delta cut its 2026 adjusted earnings forecast to $5.10-$5.60 per share from $6.50-$7.50, as its annual fuel bill is expected to rise by about $6 billion. Its shares fell 3% in premarket trading.
Delta cut its annual adjusted earnings forecast to $5.10-$5.60 per share, down from $6.50-$7.50 in July. The new midpoint of $5.35 was below analysts’ average estimate of $5.46. Third-quarter adjusted earnings of $1.72 per share narrowly missed the $1.76 average estimate, and adjusted operating margin fell to 9.4% from 11.1%.
Delta expects its annual fuel bill to rise by roughly $6 billion from last year. Third-quarter fuel expense increased 62% year over year to $4.1 billion, more than $500 million above the company’s July expectation. Delta forecast fourth-quarter fuel costs of $4.25 per gallon, up from $3.61 in the third quarter.
Delta said demand remained strong and expected fourth-quarter revenue growth of about 20% from a year earlier, with almost 60% of the quarter already booked. The company expects its Philadelphia-area refinery to generate $700 million in profit this year, partly offsetting higher fuel costs. It forecast fourth-quarter adjusted earnings of $1.15-$1.65 per share.
