Delta warns of more airline capacity restraint as fuel shock hits profits
DAL•Delta cut its 2026 adjusted earnings outlook to $5.10-$5.60 a share from $6.50-$7.50, as it expects fuel costs to rise about $6 billion from last year. CEO Ed Bastian said airlines may need to restrain capacity further next year to protect profitability.
1. Profit outlook cut
Delta said its annual fuel bill is now expected to rise roughly $6 billion from last year, about $2 billion more than projected in July, as higher jet fuel prices weigh on profits. Its new adjusted earnings forecast is below the previous range, and third-quarter adjusted profit of $1.72 a share missed analysts’ average estimate by 4 cents.
2. Capacity and fares
CEO Ed Bastian said the industry may need to curb flight growth further next year, saying, “In a high-cost environment you cannot grow your way out of it.” He said Delta raised ticket prices roughly 20% this year with limited passenger resistance and expressed confidence that higher fares could be sustained after fuel costs decline.
3. Travel demand remains strong
Delta expects fourth-quarter revenue to grow about 20% year over year despite modest capacity expansion, with more than 60% of the quarter already booked. The airline said premium and corporate travel remained strong and its main cabin business was improving; Bastian said Delta would remain cautious about its 2027 capacity plans until fuel prices were clearer.
