Delta cuts full-year profit forecast as fuel costs surge

Delta Air Lines lowered its full-year profit forecast by almost a quarter, citing higher fuel costs and expecting fuel expenses for the year to be about $6 billion higher than the previous year, with an adjusted earnings per share target of $5.10 to $5.60.

In the third quarter, Delta reported an adjusted EPS of $1.72, slightly below the analyst estimate of $1.76, while its adjusted operating margin fell to 9.4% from 11.1% in the prior quarter; fuel expense rose 62% to $4.1 billion, exceeding the July expectation by more than $500 million.