Delta Cuts 2026 Profit Forecast Following Additional $6 Billion Fuel Cost

Delta Air Lines lowered its earnings per share forecast for 2026 to a range between $5.10 and $5.60, compared to a previous range between $6.50 and $7.50, after expecting to incur an additional $6 billion in fuel costs this year.

The company's Chief Financial Officer, Erik Snell, said the reduced forecast is "entirely attributable to higher jet fuel costs," which currently average around $4.50 per gallon.

Despite fuel pressure, Delta's third-quarter revenue rose 16% to $17.59 billion, with unit revenue growing in every major international region where the company operates.

The lowered guidance reflects the pressure of fuel costs on airlines globally, making jet fuel prices a governing variable in corporate decisions regarding routes and pricing, which ultimately impacts passenger ticket costs.

What do these terms mean?

Earnings per Share: The portion of a company's profit allocated to each individual share of stock, calculated by dividing net profit by the total number of shares.

Earnings Guidance: A company's publicly announced estimates of its upcoming profits and revenues, used by investors for evaluation.

Gallon: A unit of liquid measurement equal to approximately 3.8 liters, used to price jet fuel in the US market.

Unit Revenue: The average revenue generated per seat or per mile sold by the airline, measuring operational efficiency independent of flight volume.