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Delta Air Lines Shares Edge Higher as CEO Addresses Starlink Talks and Fuel Costs Hit Outlook

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DAL$82.17 0.04%

Delta Air Lines Inc. (DAL) stock edged 0.04% higher in premarket trading to $82.17 following comments from Chief Executive Officer Ed Bastian regarding past connectivity negotiations with satellite provider Starlink. Bastian stated that while the airline tested Starlink equipment six years ago, negotiations stalled over scaling timelines and customer access terms. Delta has since chosen alternative satellite providers, including Amazon Leo, Viasat, and Hughes, to support its free passenger Wi-Fi.

The disclosure follows a third quarter impacted by surging energy expenses. Delta's quarterly fuel costs jumped 62% year-over-year to $4.14 billion, contributing to missed quarterly targets. Adjusted earnings reached $1.72 per share on $17.59 billion in revenue, falling below average analyst projections of $1.76 per share and $18.92 billion. Consequently, management trimmed its 2026 adjusted earnings forecast to a range of $5.10 to $5.60 per share, down from the prior $6.50 to $7.50 estimate.

Going forward, investors will monitor the rollout of planned Wi-Fi upgrades alongside management's balance sheet strategy. Delta still expects to deliver around $2.5 billion in full-year free cash flow and plans to pay down over $2 billion in debt.

Key points

  • Delta Air Lines Inc. (DAL) stock rose 0.04% premarket to $82.17 following a 2.2% decline last week.
  • CEO Ed Bastian confirmed early Starlink tests six years ago stalled over deployment timing and commercial access terms.
  • Third-quarter adjusted earnings of $1.72 per share on $17.59 billion in revenue missed Wall Street expectations.
  • Fuel expenses increased 62% year-over-year to $4.14 billion during the third quarter.
  • Delta lowered its 2026 adjusted earnings guidance to $5.10–$5.60 per share from $6.50–$7.50 per share.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

Why did Delta Air Lines not partner with Starlink?

Delta CEO Ed Bastian stated that Starlink was not ready to scale when Delta was prepared to deploy service, and the companies disagreed on customer access terms during discussions six years ago.

Why did Delta lower its 2026 earnings forecast?

Delta lowered its 2026 adjusted earnings guidance to $5.10-$5.60 per share due to rising jet fuel prices, which jumped 62% year-over-year in the third quarter to $4.14 billion.

What were Delta Air Lines third-quarter earnings and revenue?

Delta reported third-quarter adjusted earnings of $1.72 per share on $17.59 billion in revenue, missing analyst forecasts of $1.76 per share and $18.92 billion.