Airline expects fourth-quarter sales to top Wall Street estimates as revenue momentum offsets pressure from sharply higher fuel costs
Delta Air Lines (DAL) issued a stronger-than-expected fourth-quarter revenue outlook on Friday, but lowered its full-year earnings guidance as elevated fuel costs continue to pressure profitability.
The airline expects fourth-quarter adjusted earnings of $1.15 to $1.65 per share, compared with the $1.51 consensus estimate. At the midpoint, Delta’s forecast comes in slightly below Wall Street expectations.
Revenue is projected to reach approximately $17.53 billion during the December quarter, exceeding analysts’ estimate of $17.19 billion. Delta said revenue momentum is continuing into the fourth quarter, with strength across products and geographic markets.
Despite the solid demand environment, higher fuel prices remain a major headwind. Delta said its fourth-quarter guidance assumes fuel prices based on the forward curve as of Oct. 2 and includes an estimated refinery benefit of roughly $0.40 per gallon. The carrier expects an all-in fuel price of approximately $4.25 per gallon.
Delta highlighted what it described as the structural durability of its business despite the challenging fuel environment, noting that the company expects to absorb roughly $6 billion in increased fuel costs.
The airline also lowered its full-year 2026 adjusted earnings outlook to between $5.10 and $5.60 per share, down substantially from its previous forecast of $6.50 to $7.50. Wall Street analysts had been expecting approximately $5.59 per share.
The revised outlook puts greater emphasis on Delta’s ability to maintain pricing power and revenue growth while navigating higher operating expenses.
For investors, the report presents a mixed picture: underlying travel demand remains resilient and fourth-quarter revenue could exceed expectations, but elevated fuel costs are taking a significant bite out of earnings and forcing Delta to reset its full-year profit expectations.
