DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Delta Air Lines sharply reduced its 2026 profit outlook as elevated fuel prices squeezed the carrier, even as CEO Ed Bastian said rising fares have not discouraged travelers. The airline also missed Wall Street earnings estimates for the first time in two years.

Delta now expects adjusted earnings of $5.10 to $5.60 per share for the full year. In July, when fuel prices were lower, the airline projected earnings of $6.50 to $7.50 per share.

The carrier also lowered its free cash flow forecast for the year to $2.5 billion. Delta had expected as much as $4 billion when it issued its July outlook.

Bastian said fares have continued moving higher as Delta passes along much of a $6 billion increase in fuel costs this year. Despite those higher ticket prices, travelers have continued to make bookings across the company’s network.

“The consumer response continues to be quite strong. We’re seeing it across all channels, all cabins of service, all geographies, business, leisure,” Bastian said.

Jet fuel prices in the U.S. Gulf of Mexico region have nearly doubled from a year ago, according to FactSet. Prices reached $4.34 on Thursday, compared with $2.19 during the same period a year earlier.

Delta projected that fourth quarter revenue would rise 20% from the same period last year. That would exceed the 16% increase recorded during the third quarter after adjusting for the airline’s benefit from its refinery in Trainer, Pennsylvania.

The refinery converts crude oil into jet fuel and other products, providing Delta with an advantage over rival carriers. Bastian acknowledged that energy market turbulence was affecting the outlook, saying, “Obviously the fuel pricing, the volatility of fuel prices have something to do with that.”

Delta is the country’s most profitable airline and the first carrier to report results from the third quarter, which includes the busy summer travel season. Its fourth quarter guidance nevertheless came in below analyst estimates.

The increase in fuel prices since the Iran war began in February has weighed on airline profits, even as carriers have exercised pricing power. Fuel is the industry’s second largest cost after labor.

The latest inflation reading in September showed airfare rising more than 23% from a year earlier. That jump illustrates the higher prices facing travelers as carriers contend with significantly more expensive fuel.

Delta reported third quarter net income of $756 million, equal to $1.15 per share. That was down 47% from net income of $1.42 billion, or $2.17 per share, in the same quarter last year.

After adjusting for sales from the refinery, maintenance operations and profit sharing, revenue climbed 16% from the prior year to $17.59 billion. That figure was below the $17.67 billion expected by Wall Street, based on LSEG consensus estimates.

Total operating revenue jumped 21% during the third quarter to $20.19 billion. Premium revenue, which has become a larger share of Delta’s total sales, increased 18% to $6.82 billion, while main cabin sales rose 12% to $6.8 billion.

Delta also recently announced plans to add Amazon Leo satellite internet to its aircraft. The move comes almost four years after the airline announced free Wi-Fi throughout its fleet and as carriers compete to deliver living room quality internet speeds on board.

SpaceX CEO Elon Musk criticized Bastian on X after the View from the Wing travel blog reported that the Delta CEO told staff, “We do not want to be with Elon Musk. Trust me.” Musk said Bastian would “lose his job over this.”

SpaceX’s Starlink has become the main satellite Wi-Fi supplier, with airline partners including United Airlines, American Airlines, Southwest Airlines and Alaska Airlines. Bastian dismissed the suggestion of a personal dispute and said Delta held talks with SpaceX six years ago, but the company “weren’t ready to scale.”

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.