Delta pulls growth plans as fuel spike pressures airline profits

Delta Air Lines said it is halting planned capacity growth for Q2 2026 after a sharp jump in jet fuel costs tied to Middle East disruption. Delta expects more than $2 billion of extra fuel expense in the June quarter, sees jet fuel at about $4.30 per gallon, and guided Q2 earnings to $1.00 to $1.50 per share, below Wall Street expectations. The airline also plans to trim lower-revenue flying and recover part of the fuel hit through higher fares and baggage fees.

Winners

Oil majors

If jet fuel prices stay high, that usually supports crude pricing and cash flow for major upstream energy companies. Delta’s warning highlights that the fuel spike is large enough to change airline growth plans, which is a bullish read-through for large US oil producer ...