Delta Air Lines Faces a Fuel Crisis—But There's a Silver Lining

Delta Air Lines (NYSE: DAL) is set up for a Q4 pullback as rising fuel costs cut into its earnings. The pullback could reach as low as $70 before it bottoms, but once it does, the recovery may be rapid.

That’s because results, impaired as they are by fuel costs, remain robust. The company produced record Q3 revenue, underpinned by broad-based demand, pointing to a strong Q4 and a high probability that the trend will continue into the next year.