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# Delta's Refinery Lost $33 Million In The September Quarter, After Earning $351 Million In June
- URL: https://www.bullished.co/deltas-refinery-lost-33-million-in-the-september-quarter-after-earning-351-million-in-june-e40b4569/
- Published: 2026-10-09T21:06:42.000Z
- Updated: 2026-10-09T21:06:42.000Z
- Description: Delta's 10-Q blames crude volatility and a mid-June outage, and says the refinery should be profitable again in the December quarter.
- Author: Matteo Parrino
- Tags: SEC Filings, DAL, Industry: Industrials

[Delta](https://www.bullished.co/tag/dal/)'s refinery [lost $33 million](https://www.sec.gov/Archives/edgar/data/0000027904/000002790426000038/dal-20260930.htm?ref=bullished.co) at the operating line in the latest quarter, the 10-Q says. The June quarter had brought $351 million of profit. The unit Delta owns to supply its own jet fuel swung to a loss in the quarter when the airline's average jet fuel purchase price was 63% higher than a year earlier.

## The finding: a refinery loss as fuel costs climbed

The 10-Q says the drop in refinery income came mainly from volatility in crude pricing and a temporary outage that halted production starting in the middle of June 2026\. A year earlier, in the September 2025 quarter, the refinery earned $53 million.

The nine-month figure is $278 million of operating income, against $42 million a year earlier. The $33 million loss therefore cut into the $311 million the unit had earned through June.

The [prior 10-Q](https://www.sec.gov/Archives/edgar/data/0000027904/000002790426000031/dal-20260630.htm?ref=bullished.co) reported the $351 million June-quarter profit. The new filing adds that the outage "initially halted production and subsequently resulted in reduced operating capacity" during the September quarter. Management projects profit again in the December 2026 quarter, with output back to normal by the end of September.

The refinery typically produces about 200,000 barrels a day of gasoline, diesel and jet fuel. Non-jet output is sold to or exchanged with third parties.

## The catch: costs grew faster than revenue

[Operating income was $1.5 billion](https://markets.ft.com/data/announce/detail?dockey=600-202610090630PR%5FNEWS%5FUSPRX%5F%5F%5F%5FCL67681-1&ref=bullished.co), down $230 million from the September 2025 quarter. Total revenue rose $3.5 billion, or 21%, to $20.186 billion, while total operating expense rose $3.7 billion, or 25%, to $18.732 billion.

Aircraft fuel and related taxes rose $1.8 billion to $4.351 billion. The average price per gallon was $3.80, up 68% from $2.26\. Delta says elevated jet fuel costs are expected to last until market disruptions and geopolitical events are resolved.

Refinery sales to third parties climbed to $2.601 billion from $1.476 billion, and Delta strips them out of its adjusted figures. Adjusted revenue rose 16%, and adjusted operating expense rose 18%.

Non-operating results swung to a $380 million expense from $93 million of income, mainly on mark-to-market losses on equity investments.

## Who it touches

For holders, the 10-Q gives a testable claim: the refinery should be back in profit in the December quarter. Operating cash flow was $5.7 billion for nine months, against $6.1 billion a year earlier. Liquidity stood at $6.9 billion at September 30, and free cash flow was $463 million in the quarter.

Delta also paid down $3.3 billion of debt and finance leases in the nine months, and it expects 2026 capital spending of over $5 billion. Its market capitalization was $54.0 billion at Friday's close, with the shares at $82.17.

The next 10-Q will show whether the refinery's December-quarter profit arrives as management expects.

### Sources

- [10-Q Filing — Delta Air Lines (DAL)](https://www.sec.gov/Archives/edgar/data/0000027904/000002790426000038/dal-20260930.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Delta Air Lines (DAL), Q2 FY2026 filed 2026-07-10 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0000027904/000002790426000031/dal-20260630.htm?ref=bullished.co) — SEC EDGAR
- [Delta Air Lines (DAL) Q3 2026 earnings](https://www.cnbc.com/2026/10/09/delta-air-lines-dal-q3-2026-earnings.html?ref=bullished.co) — CNBC
- [Delta Air Lines Announces September Quarter 2026 Financial Results – Company Announcement - FT.com](https://markets.ft.com/data/announce/detail?dockey=600-202610090630PR%5FNEWS%5FUSPRX%5F%5F%5F%5FCL67681-1&ref=bullished.co) — Financial Times
- [Delta sees record revenue in third quarter while fuel costs rise](https://www.ajc.com/business/2026/10/delta-sees-record-revenue-in-third-quarter-while-fuel-costs-rise/?ref=bullished.co) — ajc.com
- [Delta Air slashes profit forecast over fuel-cost surge](https://www.rte.ie/news/business/2026/1009/1594762-delta-air-third-quarter-results/?ref=bullished.co) — rte.ie
- [Delta reports Q3 earnings miss, cuts guidance as fuel costs surge 62% from year ago](https://finance.yahoo.com/markets/stocks/article/delta-reports-q3-earnings-miss-cuts-guidance-as-fuel-costs-surge-62-from-year-ago-103121231.html?ref=bullished.co) — Yahoo Finance

### More on Delta Air Lines

- [Delta CEO Ed Bastian Says Domestic Rivals Earn 3% On Invested Capital, Against Delta's 11%](https://www.bullished.co/delta-ceo-ed-bastian-says-domestic-rivals-earn-3-on-invested-capital-against-deltas-11-bc07eb67/)
- [Delta's Fuel Bill Cut Quarterly Net Income To $756 Million, But Adjusted Earnings Edged Up](https://www.bullished.co/deltas-fuel-bill-cut-quarterly-net-income-to-756-million-but-adjusted-earnings-edged-up-6f73bc25/)

[All Delta Air Lines (DAL) coverage →](https://www.bullished.co/tag/dal/)