✎ Contributed by Ty Griffin
Delta Air Lines lowered its 2026 earnings forecast as rising jet-fuel prices pressured profitability despite continued strength in passenger demand. The carrier now expects adjusted earnings of $5.10 to $5.60 per share, down from its previous forecast of $6.50 to $7.50, and reduced its free cash flow outlook to $2.5 billion from as much as $4 billion.
Jet fuel prices in the U.S. Gulf Coast region have nearly doubled from a year earlier, contributing to an estimated $6 billion increase in Delta’s annual fuel costs. The company said it has passed much of that increase to travelers through higher fares without significantly weakening bookings. Delta expects fourth-quarter revenue to rise 20% from the prior-year period when excluding the impact of its refinery and other non-ticket businesses.
Market Reaction
- Delta Air Lines Inc. (NYSE: DAL): $80.49, down $1.70 (2.07%)
- United Airlines Holdings Inc. (NASDAQ: UAL): $105.58, down $1.87 (1.74%)
- American Airlines Group Inc. (NASDAQ: AAL): $12.60, down $0.20 (1.56%)
- Southwest Airlines Co. (NYSE: LUV): $41.11, down $0.26 (0.62%)
- Alaska Air Group Inc. (NYSE: ALK): $38.60, down $0.92 (2.33%)
Investor Sentiment
Airline shares moved lower as Delta’s reduced forecast highlighted the difficulty carriers face in protecting profits from volatile fuel costs. Strong demand and rising fares provide some support, but investors remain concerned that continued price increases could eventually discourage travelers or force airlines to absorb more of the added expense.
Delta’s refinery gives it some protection that competitors do not have, making elevated fuel prices a potentially greater challenge for other carriers. Market participants will watch booking trends, fare levels and capacity plans as United Airlines, American Airlines, Southwest Airlines and Alaska Air Group report their own results.
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