Delta posts revenue of $20.2 billion, cuts profit outlook as fuel costs weigh

Key Facts

Delta Air Lines announced on October 9, 2026, that it was cutting its annual profit outlook as higher fuel costs weighed on third-quarter results, according to Reuters. The airline reported revenue of $20.2 billion for the quarter, according to its earnings release for the period ended in September. Adjusted earnings per share were $1.72, falling 4 cents short of analysts' average estimate, the news agency reported. Reported earnings per share were $1.15, according to the company, compared with the higher earnings it announced on an adjusted basis. Delta shares fell 1.7% in afternoon trading on the day of the results, coinciding with the announcement of the cut to its annual outlook.

The company's adjusted revenue totaled $17.6 billion in the third quarter, according to Delta's statement, a measure separate from total reported revenue. Adjusted revenue rose 16% from the same period a year earlier, while capacity remained flat during the period covered by the results. In its passenger business, premium travel revenue grew 18% year on year, outpacing growth in the company's overall adjusted revenue. Cargo revenue also increased 29% from the corresponding quarter a year earlier, according to the figures Delta provided in its earnings release. Cargo thus grew faster than premium travel, while total adjusted revenue growth came without an increase in capacity.

Adjusted fuel expenses, meanwhile, totaled $4.1 billion in the third quarter, creating the pressure that accompanied the cut to the annual profit outlook. These expenses rose 62% year on year, according to the company's statement, outpacing growth in premium travel revenue, cargo revenue and adjusted revenue. The adjusted fuel price for the quarter was $3.61 per gallon, according to the figures Delta announced in its results. Reuters reported that higher fuel costs outstripped gains in ticket prices, prompting the company to lower its full-year profit outlook. Delta warned that the airline industry needed "further restraint in flight growth" to protect profitability, according to the news agency.

The results fell below the earnings range Delta had forecast for the third quarter when it announced results for the period ended in June and issued guidance in July. In that release, the company had forecast third-quarter adjusted earnings of between $2.00 and $2.50 per share, before the latest results were published. At the time, it had maintained its full-year adjusted earnings outlook at between $6.50 and $7.50 per share. It also forecast annual free cash flow of between $3 billion and $4 billion in July, according to its June-quarter earnings release. The latest guidance revision covered earnings and free cash flow, compared with the levels the company had targeted when it announced its outlook in July.

On its financial position, Delta reported free cash flow of $463 million in the third quarter, according to its earnings release. Adjusted net debt stood at $13.4 billion at quarter-end, the figure the company included among its financial position metrics. It also disclosed available liquidity of $6.9 billion at the end of the period, including undrawn credit facilities. The disclosed liquidity thus includes resources available through undrawn facilities, alongside the other liquidity components included in the company's total. The reported free cash flow reflects what Delta generated during the quarter, while the net debt and liquidity figures refer to the end of the period.

For the quarter ending in December 2026, Delta expects adjusted earnings of between $1.15 and $1.65 per share, according to the company's statement. Guidance for that period assumes an all-in fuel cost of about $4.25 per gallon, among the assumptions underpinning its quarterly outlook. This assumption applies to the fourth quarter, while the company reported a lower adjusted fuel price for the third quarter covered by the results. For full-year 2026, Delta is targeting free cash flow of about $2.5 billion, according to the guidance accompanying its September earnings announcement. That is below the bottom of the annual range announced in July, leaving the company entering the December quarter with reduced earnings and cash flow forecasts.