Delta Air Lines, Inc. (NYSE: DAL) stock fell Friday after the airline reported third-quarter 2026 results that beat Wall Street's revenue estimate but missed adjusted earnings expectations.

The company also cut its full-year earnings outlook as higher fuel costs continued to pressure profitability.

Revenue Rises, but Earnings Miss Estimates

Delta reported adjusted earnings of $1.72 per share, missing the $1.81 estimate. Revenue rose 21% year over year to $20.186 billion, beating the $17.654 billion estimate.

Adjusted operating revenue climbed 16% to a record $17.585 billion, while passenger revenue increased 15% to $15.534 billion.

Premium-ticket revenue rose 18% to $6.818 billion, while Main Cabin revenue grew 12% to $6.802 billion.

However, adjusted operating margin narrowed to 9.4% from 11.1% a year earlier.

Higher Fuel Costs Squeeze Margins

Adjusted fuel expenses surged 62% to $4.143 billion as the average fuel price increased 60% to $3.61 per gallon.

CFO Erik Snell said the company's quarterly earnings absorbed more than $500 million in additional fuel costs compared with its early July forecast.

Meanwhile, operating cash flow totaled $1.713 billion, while free cash flow reached $463 million.

Delta ended the quarter with $3.787 billion in cash and cash equivalents.

Delta Slashes 2026 Earnings Forecast

Delta lowered its full-year adjusted earnings forecast to $5.10-$5.60 per share from $6.50-$7.50, compared with the $5.59 estimate.

For the fourth quarter, the airline expects adjusted earnings of $1.15-$1.65 per share, compared with the $1.51 estimate.

Delta also projects revenue of $17.527 billion, above the $17.192 billion estimate, and an operating margin of 7%-9%.

The outlook assumes fuel costs of about $4.25 per gallon.

CEO Ed Bastian said Delta expects approximately $4.5 billion in full-year pretax profit despite absorbing a $6 billion increase in fuel costs.

The airline also expects about $2.5 billion in free cash flow and plans to repay more than $2 billion in debt this year.

DAL Price Action: Delta Air Lines shares fell 4.43% to $78.50 in Friday's premarket trading, according to market data.