Rising fuel costs slashed Delta’s profit outlook despite strong demand

What the report says

Delta Air Lines reduced its full-year profit outlook after a sharp rise in fuel costs, even as travel demand remained strong, according to Al Jazeera’s reporting on the carrier’s third-quarter earnings released Friday. The Atlanta-based airline said it now expects annual fuel expenses to increase by $6bn, reflecting higher prices across the aviation sector amid tensions between the United States and Iran.

The revised forecast brought Delta’s expected adjusted earnings per share to $5.10 to $5.60, down from a July estimate of $6.50 to $7.50. That new range sits below analysts’ average estimate of $5.46, based on LSEG data cited in the report. Delta shares fell in midday trading after the announcement. The company also said it has raised prices by about 20 percent this year and believes those fares could hold even if fuel prices ease.

Despite the pressure from fuel, Delta said demand remains healthy. The airline said 60 percent of its fourth-quarter flights were already booked and added new international routes for next year, including service from Seattle to Tokyo, Boston to Venice and Austin to Paris. CEO Ed Bastian also pointed to strong premium travel, with premium seat revenue up 18 percent from a year earlier.

The report noted a broader squeeze on consumers and airlines, with U.S. carriers spending nearly $43bn on fuel in the first eight months of the year, up $13.2bn from the same period in 2025. More generally, airlines with higher exposure to fuel prices may face continued cost pressure if global energy markets remain volatile.