Delta Air Lines said on October 9 that it earned an adjusted pre-tax profit of $1.5 billion in the September quarter, in line with a year earlier, as record revenue offset a 62 percent jump in adjusted fuel costs. The Atlanta-based carrier forecast December-quarter revenue growth of about 20 percent.

Adjusted operating revenue rose 16 percent to $17.6 billion, which the company called a September-quarter record, on capacity that was flat from a year earlier. Adjusted earnings were $1.72 a share, compared with $1.70 a year earlier, while the adjusted operating margin narrowed to 9.4 percent from 11.1 percent, according to the full results release.

On a GAAP (generally accepted accounting principles) basis, Delta reported operating revenue of $20.2 billion, up 21 percent, and pre-tax income of $1.1 billion, down 40 percent. GAAP earnings were $1.15 a share, compared with $2.17. Delta said its adjusted figures exclude mainly third-party sales from its refinery, gains and losses on investments, and hedge results at Monroe Energy, the subsidiary that runs its Trainer refinery. The release was also filed with the Securities and Exchange Commission.

Fuel bill and fares

Delta paid an adjusted average of $3.61 a gallon for fuel in the quarter, 60 percent more than a year earlier, after a refinery benefit of 13 cents a gallon. Adjusted fuel expense rose to $4.1 billion. Chief Financial Officer Erik Snell said the airline absorbed “more than $500 million of higher fuel costs compared to our guidance in early July.”

“Demand remains strong, supported by consumers’ growing preference for experiences and travel, with air travel continuing to be one of the best values in the consumer economy,” Chief Executive Officer Ed Bastian said in the release. He described the period as “one of the most elevated fuel environments in recent times.”

Joe Esposito, the chief commercial officer, attributed the revenue gain to “broad demand strength and healthy yield growth as we cover higher costs and manage the business for margins.” Adjusted total unit revenue, a measure of revenue per seat flown a mile, rose 15 percent. Domestic unit revenue rose 16 percent and international unit revenue 12 percent, led by Latin America at 22 percent.

Premium revenue grew 18 percent on a 6 percent increase in seats, total loyalty revenue rose 18 percent, and cargo revenue climbed 29 percent. Payments from card partner American Express rose 15 percent, and Delta said they are on course to exceed $9 billion for the full year. Corporate sales grew by double digits in all sectors, led by banking, technology and energy, the company said.

Costs excluding fuel rose 7.3 percent per available seat mile. Snell said the increase was driven mainly by higher crew and revenue-related costs, with capacity growth “several points below our original plan,” including nearly one point of impact from summer storms.

Outlook and balance sheet

For the December quarter, Delta forecast earnings of $1.15 to $1.65 a share, based on an all-in fuel price of about $4.25 a gallon that includes a refinery benefit of about 40 cents. The guidance assumes fuel prices at the forward curve as of October 2. Esposito said seats would grow less than 2 percent, including a reduction in Main Cabin seats.

For 2026, the airline expects earnings of $5.10 to $5.60 a share and free cash flow of about $2.5 billion. “For the full year, we expect to generate a pre-tax profit of roughly $4.5 billion, absorbing a $6 billion increase in fuel costs,” Bastian said. Free cash flow was $463 million in the quarter, down from $833 million, and adjusted net debt fell to $13.4 billion, $950 million lower than at the end of 2025. Delta plans to repay more than $2 billion of debt this year and has accrued nearly $900 million in profit sharing toward a payout to employees next February.

Why it matters

The results show Delta covering much of a sharp rise in fuel costs through pricing while keeping adjusted profit roughly flat. The company attributed its revenue growth to demand and yield growth rather than added flying: capacity was flat, and Main Cabin seats fell by a low-single-digit percentage. Higher energy prices have also figured in US monetary policy: the Federal Reserve said in July that inflation partly reflected “supply shocks that have driven price increases in certain sectors, including energy.”

For investors and employees, the outlook depends on fuel. Snell said December-quarter earnings at the upper end of the range would be “consistent with last year,” and the company’s full-year profit forecast already absorbs the $6 billion rise in fuel costs it cited.

The caveats

Delta’s headline figures are adjusted, non-GAAP measures that exclude items such as refinery sales to third parties and investment gains and losses; on a GAAP basis, quarterly profit fell. The guidance rests on fuel prices as of October 2 and is subject to change.

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