Delta cuts profit forecast as fuel costs rise $6bn

Delta Air Lines lowered its full-year profit forecast on Friday, saying higher fuel costs were expected to add $6 billion to its bill.

The US carrier said third-quarter fuel expenses reached $4.1 billion, a 62 percent rise from the same period a year earlier. It now expects 2026 earnings per share of $5.10 to $5.60, down from a July projection of $6.50 to $7.50.

Delta chief executive Ed Bastian said “demand remains strong” and that the company was navigating “one of the most elevated fuel environments in recent times”.

The company reported third-quarter adjusted earnings per share of $1.72, below the $1.75 FactSet consensus. Bastian said Delta expected to generate pre-tax profit of about $4.5 billion for the full year while absorbing the fuel-cost increase.

Energy costs have risen since late February as US-Israel strikes targeting Iran prompted Tehran to retaliate by blocking the Strait of Hormuz, a key route for energy transport.