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Ed Bastian’s Premium Strategy at Delta Faces a $6 Billion Fuel Shock

Delta's premium cabins and American Express partnership are bringing in billions, but soaring fuel costs have forced the airline to slash its 2026 earnings forecast.

Delta Air Lines lowered its 2026 earnings forecast on Oct. 9, saying a $6 billion jump in fuel costs will hold full-year pre-tax profit to roughly $4.5 billion, even as adjusted revenue grew 16 percent during the three months ended Sept. 30, according to a regulatory filing. Despite its lucrative partnership with American Express and growing demand for premium seats, the carrier hasn’t fully offset the surge in fuel expenses.

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“There’s no doubt the cost of oil is having a significant impact on airfares,” Julian Kheel, founder and CEO of Points Path, tells Observer. His company operates a browser extension that compares flight prices in dollars and reward points on Google Flights. Fuel generally accounts for a substantial portion of an airline’s operating costs, he explains, but demand remains strong. “That being said, we have yet to see a significant decrease in travel demand, especially as we enter the holidays. So, as long as people are still........

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