Key Takeaways
- Delta Air Lines (DAL) slashed its full-year profit forecast by nearly 25% due to a projected $6 billion increase in fuel costs, despite reporting record third-quarter revenue.
- Tesla (TSLA) saw a 5% year-over-year increase in China-made vehicle sales for September, delivering 95,366 units as it continues its recovery in the world's largest auto market.
- Ukrainian President Volodymyr Zelenskyy reported extensive damage to the national power grid and transmission facilities following a massive wave of Russian strikes.
- In Spain, right-wing parties Partido Popular (PP) and Vox are leading in the polls with a combined 50.8% support ahead of a snap general election scheduled for November 29.
Delta Air Lines Hit by Surging Fuel Costs
Delta Air Lines (DAL) reported mixed third-quarter results on Friday, as record travel demand was overshadowed by a dramatic spike in energy prices. The carrier posted adjusted earnings per share (EPS) of $1.72, missing analyst estimates of $1.82. While adjusted revenue reached $17.59 billion, surpassing expectations, the company was forced to absorb a 62% jump in adjusted fuel expenses, which totaled $4.1 billion for the quarter.
The airline significantly lowered its full-year 2026 guidance, now expecting adjusted EPS between $5.10 and $5.60, down from its previous range of $6.50 to $7.50. Management noted that the revision is almost entirely due to the "higher for longer" fuel environment, with the company expecting to absorb a total $6 billion fuel hike for the year. Despite the guidance cut, Delta remains optimistic about year-end travel, projecting December quarter revenue growth of approximately 20%.
Tesla China Sales Maintain Upward Momentum
Tesla (TSLA) continues to show resilience in the competitive Chinese market, with new data from the China Passenger Car Association (CPCA) showing the sale of 95,366 China-made vehicles in September. This represents a 5% increase compared to the same period last year. The growth was supported by strong performance from the Model 3 and Model Y, alongside strategic discounts of up to 7,000 yuan ($1,044) offered on selected variants to maintain market share.
The September figures contribute to a strong third quarter for Tesla’s Shanghai Gigafactory, which saw a 13.7% annual growth in deliveries. This recovery comes at a critical time as the automaker faces intensifying competition from domestic Chinese rivals like BYD and Xiaomi. Analysts suggest that the recent launch of the six-seater Model Y variant has been a key driver in sustaining consumer interest in the region.
Geopolitical and Macroeconomic Developments
In Ukraine, the energy crisis has reached a critical point following what President Volodymyr Zelenskyy described as "vile" strikes on infrastructure. The attacks have caused extensive damage to power grids and electricity transmission facilities, leading to emergency blackouts in Kyiv and several other regions. Restoration efforts are reportedly underway around the clock as the country prepares for a difficult winter season.
Meanwhile, Spain is bracing for a significant political shift. Following the calling of a snap general election for November 29, recent polling indicates a surge in support for the right-wing alliance. The conservative Partido Popular (PP) and the hard-right Vox party are currently projected to capture a combined 50.8% of the vote, potentially ending years of left-leaning governance under Prime Minister Pedro Sánchez. The election is expected to be dominated by the ongoing housing affordability crisis and recent protests over surging rents.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.