Delta cuts its outlook as a $6 billion fuel bill bites

Delta Air Lines cut its 2026 earnings forecast to $5.10–$5.60 a share, from $6.50–$7.50, citing about $6 billion in higher fuel costs. Third-quarter adjusted earnings of $1.72 a share missed the $1.76 analysts expected, and the shares fell 3.5% before the open.

Executives warned that fares will rise if fuel prices stay high. That adds to the pressure on household budgets: diesel hit a record $6.52 a gallon in September, according to AAA, and the University of Michigan’s consumer sentiment index fell to a five-month low this week.

Energy markets had another reason to stay tense. Hurricane Isaias shut in 62.9% of Gulf of Mexico oil production on Thursday, about 1.28 million barrels a day, before coming ashore near Destin, Florida, as a Category 2 storm on Friday evening.

A G7 agreement on October 2 to release up to 100 million barrels from strategic reserves had pulled WTI to about $89.60 on Tuesday. By Friday it had settled at $91.85, with Brent at $104.72, after President Trump said the U.S. would not attack Iran before the November midterms but that its blockade of Iranian shipments remains in force.