Delta Air Lines reported record third-quarter revenue, but higher jet-fuel costs pushed adjusted spending sharply higher and led the airline to lower its 2026 earnings outlook. CEO Ed Bastian also addressed the dispute with SpaceX founder Elon Musk over in-flight Wi-Fi, saying the decision to choose Amazon Leo over Starlink came down to timing and differences over the business model—not a personal feud.
“This isn’t a back-and-forth for me,” Bastian told CNBC on October 9. He denied that Delta passed on Starlink because he did not want to work with Musk, saying he supports Starlink and drives a Tesla. Bastian added that he had not been bothered by Musk’s earlier suggestion that the decision would cost him his job.
Higher fuel bills weigh on Delta’s earnings outlook
Delta’s third-quarter revenue rose 16% year over year to $17.6 billion, a record for the period. Pretax profit was $1.5 billion, unchanged from a year earlier. Adjusted fuel expense, however, climbed 62% to $4.1 billion after jet-fuel prices rose following the outbreak of war in Iran in February. The cost increase left Delta short of analysts’ profit expectations for the first time in two years.
The airline now expects 2026 earnings per share of $5.10 to $5.60 and projects fuel costs will add $6 billion for the full year. For the fourth quarter, Delta forecast revenue growth of about 20% year over year.
Premium travelers continued to support results. Revenue from premium tickets rose 18% to $6.8 billion in the third quarter, while loyalty revenue also increased 18%. Payments associated with Delta’s co-branded business with American Express are expected to exceed $9 billion this year, underscoring the role of the frequent-flyer program in the airline’s business.
Delta says timing and business model shaped its Leo choice
The dispute with Musk began in March, when Delta selected Amazon Leo rather than SpaceX’s Starlink for its next-generation in-flight connectivity. The agreement calls for Leo to be installed on 500 aircraft starting in 2028. Delta has said Leo can support services including retail, Amazon Prime, video and gaming, at a substantially lower price than Starlink.
Musk offered a different account in May. He said Delta wanted passengers to log in through its Delta Sync portal, linking Wi-Fi access to its loyalty program and presenting connectivity as a Delta benefit. In a post on X, he argued that this would make internet access more cumbersome, difficult and expensive for passengers. Delta said that account was inaccurate.
Bastian did not confirm a claim, circulated earlier, that he had told employees he did not want to work with Musk. The remark was attributed to him by aviation social-media account JonNYC, but Delta did not confirm it. Musk later posted on X that Bastian would lose his job over the decision.
Bastian said Delta first approached SpaceX about six years ago and made an aircraft available for testing. He said the tests went well, but SpaceX was not ready to scale deployment on the timetable Delta needed. The companies also differed on commercial questions, including how customers would access the service. Bastian did not provide further details of the negotiations.
United and American move ahead with Starlink
Delta’s rivals have used their Starlink plans to court its customers. On October 1, United launched a status-match offer for Delta members, while American invited travelers reconsidering their loyalty to switch. Musk reposted both announcements.
American later said it would begin installing Starlink across its mainline fleet of more than 1,030 aircraft in 2027. United signed its Starlink agreement in 2024 and expects to complete fleetwide installation by the end of 2027. Under current plans, Delta will be the only one of the three largest U.S. airlines not using Starlink, and its Leo installations are not due to begin until 2028.
Until Leo is available, Delta will continue using its existing Hughes and Viasat systems for onboard internet. Bastian said passengers should see significant improvements to those services by the end of this year. The connectivity plans matter to Delta’s competition for premium travelers and loyalty-program members, while its published rollout schedule remains later than those of its two major rivals.