Delta Air Lines cuts 2026 forecast on fuel surge, but CEO says demand is still strong

Hey Joe, this is a miss on the top and the bottom line for Delta in the third quarter. The company earning a buck 72 a share, three cents shy of estimates at a buck 75. Revenue coming in shy of expectations at 17.59 billion. The street was expecting 17.67 billion. Now the metrics of the numbers within the numbers in the quarter and jet fuel is the story of the quarter, not just for Delta but for all airlines. In the third quarter, Delta spent more than $4.1 billion on jet fuel, up 62% year-over-year. Cost per seat mile, excluding fuel, up 7.3% year-over-year. And then there's revenue per seat mile. It was up 15%. Remember Delta and all the airlines, they are raising airfares to offset the impact of higher jet fuels. That's why the revenue numbers are stronger. Domestic revenue up 16% compared to the third quarter last year. Uh, international revenue up 12%, main cabin revenue up 12%. Premium revenue, people continue to pay up for the premium experience up 18% compared to the third quarter of 2025. Operating margin of 9.4%. It was 11.1% in the third quarter of last year. Free cash flow of $463 million. That is well below where it was in the third quarter of last year. Now for the part that people are going to be focused on today, the guidance from Delta in the fourth quarter. The company expects to earn between a buck 15 and a buck 65 a share. Right now the street is at a buck 42. So just two cents above the midpoint between buck 15 and a buck 65. Uh then you have the delta revenue guidance expected to be up 20% compared to the street expecting an increase of 17% and for the full year delta is now expecting earnings per share of between 510 and 560. Right now the street is at 546.