Delta’s Weak Outlook Drags Airline Stocks Lower as Investors Shift Focus
Delta Air Lines' disappointing 2026 profit forecast sent shockwaves through the aviation sector, with shares dropping 2% in early trading. The Atlanta-based carrier projected adjusted earnings of $6.50-$7.50 per share, falling short of Wall Street's $7.26 consensus estimate. This guidance miss dragged down the broader JETS ETF, with American Airlines and Southwest Airlines both slipping about 1%.
The aviation industry's fundamental challenge comes into sharp focus—passenger operations continue losing money while credit card partnerships prop up earnings. Delta's reliance on its lucrative co-branded card business underscores the sector's struggle with rising operational costs outpacing ticket revenue. Market sentiment suggests investors are reevaluating airline stocks as cost pressures persist.
