DAL Stock Alert: What to Know as Delta Cuts 2026 Guidance

Delta Air Lines (DAL) shares closed lower on Oct. 9 after the air carrier posted weaker-than-expected Q3 results and lowered its guidance for the full year. DAL now expects its adjusted per-share earnings (EPS) to fall between $5.10 and $5.60, representing about a 24% decline from its previous forecast, despite resilient travel demand. 

Delta Air Lines stock is, nonetheless, trading about 15% above its price at the start of 2026. 

What Made Delta Air Lines Cut Guidance 

Delta Air Lines’ reduced outlook reflects fuel expenses running substantially above management’s earlier assumptions. 

CFO Erik Snell said the airline absorbed more than $500 million in additional fuel cost in its fiscal Q3 compared with its guidance in early July. And the pressure is expected to persist: DAL projects an all-in fuel price of about $4.25 per gallon in the December quarter, even after including a refinery benefit of about $0.40 per gallon.

On the plus side, however, demand remains strong. Management expects Q4 sales to grow roughly 20% year-over-year, with seat growth below 2%. Those figures suggest the earnings reset stems from fuel-driven margin pressure, while the underlying travel business continues to expand.

Where Options Data Suggests DAL Shares are Headed 

Despite lowered guidance, options traders remain as constructive as ever on Delta Air Lines for the remainder of 2026. 

The put-to-call ratio on contracts expiring mid-December sits at 0.53x currently, indicating a bullish skew, and the upper price on those contracts, according to Barchart’s data, is set at $89.47 as of this writing, suggesting potential for a more than 100% rally from here. 

That said, DAL shares are currently trading at a forward price-to-earnings (P/E) ratio of about 14x, which makes them relatively more expensive to own than rivals United Airlines and Southwest. 

A 1.06% dividend yield, however, serves to offset some of those valuation concerns. 

How Wall Street Recommends Playing Delta Air Lines 

Wall Street analysts also expect DAL stock to rip higher from here in the months ahead. 

The consensus rating on Delta Air Lines sits at “Strong Buy” currently, with the mean price target of nearly $102 indicating significant upside potential. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.