Key Points
- Delta lowered its 2026 earnings per share outlook to $5.10–$5.60 from $6.50–$7.50, which CFO Erik Snell said was driven entirely by jet fuel costs now averaging $4.50 a gallon.
- Demand held up underneath the guidance cut: third-quarter revenue rose 16% to $17.59 billion, premium revenue was up 18%, and fourth-quarter revenue is expected up 20% with the quarter nearly 60% booked.
- Delta kept third-quarter capacity flat and Snell said expected industry capacity growth into early 2027 is concentrated in markets where Delta lacks a major presence.
Summary
Delta Air Lines cut its 2026 earnings guidance to $5.10–$5.60 a share, down from $6.50–$7.50, and chief financial officer Erik Snell attributed the change entirely to higher jet fuel costs. Fuel averaged $4.50 a gallon as of Thursday evening, and Snell said Delta will incur $6 billion in fuel expenses this year, with crude and crack spreads both running above where they sat in July. Demand, by contrast, is not the problem: third-quarter revenue rose 16% to $17.59 billion, premium revenue was up 18%, and unit revenue climbed across domestic (16%), transatlantic (11%), Latin America (22%), and transpacific (13%). Delta expects fourth-quarter revenue up 20% year over year at $4.25 a gallon for fuel, and Snell said the quarter is already almost 60% booked at about 20% revenue growth. Capacity was flat in the third quarter, and Snell said Delta’s discipline leaves it well positioned as analysts expect industry capacity to rise into early 2027, mostly in markets where Delta is not a major player.
Source: skift.com
