Delta Air Lines misses third-quarter profit forecast on higher fuel costs

Revenue of $17.59 billion also fell short of the $17.78 billion Wall Street had expected

Delta Air Lines reported third-quarter earnings of $1.72 a share, $0.27 below what analysts had expected. Revenue came in at $17.59 billion, short of the $17.78 billion forecast.

Chief Financial Officer Erik Snell said the airline absorbed more than $500 million in higher fuel costs compared with its July guidance, which kept earnings roughly level with a year earlier.

Delta said it expects December quarter revenue to grow about 20% from a year earlier, with adjusted earnings per share of $1.15 to $1.65 for the quarter. For the full year, the company guides to adjusted earnings per share of $5.10 to $5.60 and free cash flow of about $2.5 billion.

The company plans to pay down more than $2 billion of debt in 2026, aiming to bring gross leverage down to about 2.2 times. The miss appears to stem largely from the swing in fuel costs rather than from weaker demand, which Delta describes as steady. The revenue growth built into its December quarter guidance and the full-year earnings range suggest management is still counting on the top line to offset cost pressure on margins. The debt paydown target, alongside the dividend maintained last month, points to balance sheet repair as a continuing priority. Fuel costs, more than demand, look like the factor investors will be watching into year end.