WASHINGTON, D.C. — Delta Air Lines Inc. cut its profit outlook for 2024, citing soaring jet fuel costs and lingering disruptions from the Iran‑Israel conflict, even as third‑quarter revenue rose 5.2% to $13.6 billion.

Delta now expects adjusted earnings of $2.5 to $2.7 per share for the full year, down from the $3.0 to $3.2 range forecast in February. The airline said jet fuel prices have risen roughly 15% year‑to‑date, pushing fuel expenses to 31% of operating costs, the highest share in a decade. “Higher fuel costs and operational uncertainty force us to revise our guidance prudently,” CFO Gerald Grinstein told analysts on the earnings call.

KEY POINTDelta now expects adjusted earnings of $2.

The ongoing Iran‑Israel confrontation has forced Delta to suspend several flights to Tel Aviv and nearby regional hubs, reducing capacity by an estimated 3% on Middle Eastern routes. The airline also faces potential regulatory scrutiny as the U.S. Treasury reviews sanctions compliance for carriers operating in the area. “Geopolitical risk remains a material factor for investors, especially as the conflict shows no signs of de‑escalation,” said market analyst Priya Patel of Global Equity Research.

Globally, jet fuel prices are tracking the West Texas Intermediate benchmark, which hovered near $90 per barrel this quarter, a level not seen since 2014. Industry peers such as United and American Airlines reported similar margin pressure, prompting a broader reassessment of airline valuations. Investors are watching Delta’s hedging strategy, which the carrier says has offset roughly $300 million of fuel cost exposure so far.

To mitigate the earnings hit, Delta announced a $1 billion cost‑reduction plan that includes workforce realignment, accelerated retirement of older aircraft, and renegotiated supplier contracts. The airline expects the measures to generate $250 million in annual savings by 2026, a move aimed at restoring confidence among shareholders and bondholders.

Key Takeaways

• Delta lowered its 2024 earnings outlook to $2.5‑$2.7 per share, citing a 15% rise in jet fuel costs.
• Operations in the Middle East are constrained by the Iran‑Israel conflict, affecting route capacity and regulatory risk.
• Investors are monitoring the airline’s $1 billion cost‑cut plan and fuel‑hedging effectiveness as profit recovery strategies.

While the profit downgrade underscores the sensitivity of airlines to energy prices and geopolitical turmoil, Delta’s aggressive cost‑control measures and hedging program aim to cushion the impact and preserve long‑term shareholder value.