Delta Air Lines Cuts Full-Year Guidance by Nearly 24% as Fuel Costs Surge

Delta Air Lines (DAL) cut its full-year adjusted earnings guidance to $5.10–$5.60 per share, down from July's $6.50–$7.50 estimate — a roughly 24% reduction at the midpoint — after rising jet fuel prices driven by the U.S.-Iran conflict weighed on quarterly profit. Shares fell 3.5% in premarket trading Friday. The airline reported third-quarter adjusted revenue of $17.6 billion, up about 16% year over year, but adjusted EPS of $1.72 missed the LSEG estimate of $1.76. Adjusted operating margin fell to 9.4% from 11.1% a year earlier. Fuel expenses jumped 62% to $4.1 billion, exceeding July's forecast by more than $500 million. Delta expects full-year fuel spending to rise $6 billion over 2025, $2 billion above prior projections. CEO Ed Bastian said demand remains strong, with premium revenue up 18% and American Express (AXP) partnership income up 15%. The carrier is also weighing whether to launch its Atlanta-Riyadh route on October 23 after an attack on Saudi Arabia's King Khalid International Airport killed three people.