United Airlines reports its third-quarter results after the stock market closes on Tuesday, Oct. 20, with its earnings call set for Wednesday morning. Investors will be looking for signs that the fuel costs that hit Delta Air Lines are weighing on United too.
Delta cut its 2026 profit forecast on Oct. 9 because of higher fuel costs, Reuters reported. Alaska Airlines is also scheduled to report on Tuesday.
What Delta said
- New outlook: Delta now expects adjusted earnings of $5.10 to $5.60 per share for 2026. It had forecast $6.50 to $7.50 in July.
- Fuel bill: Delta expects its fuel costs to rise by about $6 billion this year. Its chief financial officer, Erik Snell, said the cut was entirely due to fuel.
- Third quarter: Adjusted earnings were $1.72 per share, compared with $1.70 a year earlier. Revenue hit a record, driven by higher fares and growth in premium travel.
- Fuel expense: Adjusted fuel spending rose 62% to about $4.14 billion. The average fuel price climbed 60% to $3.61 a gallon.
- Profit: Delta still expects about $4.5 billion in adjusted pre-tax profit for the full year.
- Fourth quarter: Delta guided to adjusted earnings of $1.15 to $1.65 per share, assuming fuel at about $4.25 a gallon.
CEO Ed Bastian said demand remains strong. Delta’s costs outside of fuel also rose. Non-fuel unit costs increased 7.3%, mainly because of higher crew and revenue-related costs and summer storms.
Why fuel prices have jumped
Gulf Coast jet fuel cost $4.34 a gallon on Oct. 8, almost double the $2.19 of a year earlier, according to FactSet data cited by CNBC. The war with Iran has pushed up oil and refined fuel prices. For the latest on shipping in the region, see our report on the tanker attacks in the Strait of Hormuz.
Delta’s advantage and United’s challenge
Delta owns an oil refinery near Philadelphia, which is expected to add around $700 million to its earnings this year and partly offsets higher fuel costs. Not every airline has that cushion. American Airlines cut its outlook in July after an 83% jump in fuel costs. Unlike Delta, it does not hedge fuel and has no refinery, according to Benzinga.
What to watch Tuesday
- Whether United lowers its own 2026 forecast.
- How much of the higher fuel bill United says it passed on through fares.
- What United says about demand heading into the holidays.
Higher fares can help airlines recover costs, but they may also discourage some travelers from booking.
