Delta Air Lines stock falls amid rising fuel costs and missed earnings targets

Delta Air Lines shares dropped more than 3% on Friday morning after the company released its third-quarter earnings report, which missed analyst expectations. The airline's revenue rose 16% year-over-year to $17.59 billion, but fell slightly short of the $17.67 billion forecast by Wall Street.

Earnings per share also missed targets, coming in at $1.72 adjusted versus the expected $1.75. Net income saw a significant decline of 47% year-over-year, falling to $1.15 billion from $2.17 billion.

The company's fuel expenses and average price per gallon increased substantially, rising 69% and 68% year-over-year respectively. Fuel costs reached $4.35 billion, with the average price per gallon at $3.80.

Delta has revised its full-year 2026 financial outlook to a more conservative range. The company now anticipates earnings per share between $5.10 and $5.60, down from its previous forecast of $6.50 to $7.50. The projected cash flow for the year has also been reduced to approximately $2.5 billion, down from a prior range of $3 billion to $4 billion.

Despite the recent stock dip, Delta has been the best-performing stock among the major U.S. carriers this year, with its shares up 18.94% year-to-date as of Thursday's close. In comparison, United Airlines shares are down 4.93%, American Airlines shares have fallen 17.31%, and Southwest Airlines shares are largely unchanged.