Delta Reports 62% Rise in Fuel Expense as Travel Demand Holds

Delta’s adjusted fuel expense jumped 62% to $4.1 billion in the September quarter, but strong travel demand helped lift operating revenue and passenger sales despite largely unchanged capacity.

Adjusted operating revenue reached $17.6 billion for the quarter ended Sept. 30, up 16% from a year earlier. Adjusted total revenue per available seat mile increased 15%, while capacity was essentially flat.

The airline’s adjusted fuel price averaged $3.61 per gallon, including a 13-cent-per-gallon refinery benefit. Under generally accepted accounting principles, aircraft fuel and related taxes totaled $4.351 billion, up 69% from $2.570 billion a year earlier. The increase was primarily driven by a 63% rise in the average jet-fuel purchase price.

Passenger revenue rose 15% to $15.534 billion. Passenger revenue per available seat mile increased 15%, and passenger mile yield climbed 14%.

“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,” Ed Bastian, Delta’s chief executive officer, said.

Delta expects to absorb about $6 billion in additional fuel costs during 2026 and lowered its full-year 2026 earnings-per-share forecast to $5.10-$5.60. The company expects to generate roughly $4.5 billion in pretax profit for the full year.

Its December-quarter outlook assumes an all-in fuel price of about $4.25 per gallon, based on the forward curve as of Oct. 2, including an estimated 40-cent-per-gallon refinery benefit.

U.S. domestic airfares averaged $445 in the second quarter, up 2.0% from the inflation-adjusted first-quarter average of $436. The figure includes ticket prices and required fees but excludes optional charges such as baggage and seat-selection fees.

Brent crude futures rose from $72 per barrel on July 1 to above $100 on July 23, reached $109 on Sept. 15 and averaged about $104 during the final two weeks of the quarter.

Delta’s revised outlook follows earlier coverage of its fuel-cost pressure and earnings forecast.