Rising fuel costs slashed Delta’s profit outlook despite strong demand

Delta Air Lines cut its profit forecast despite heightened demand as fuel costs surge across the air travel sector. The Atlanta-based air carrier said in its third-quarter earnings report released on Friday that it expects its annual fuel costs to jump by $6bn, as ongoing tensions between the United States and Iran have sent fuel prices surging across the global aviation sector. Overall, US airlines spent nearly $43bn on fuel in the first eight months of the year, a $13.2bn increase from the same period a year earlier. On Wall Street, Delta cut its earnings outlook for the year to adjusted earnings per share of $5.10 to $5.60, down from its July forecast of $6.50 to $7.50. The midpoint of the new range is below analysts’ average estimate of $5.