(Reuters) – Delta Air Lines Inc (NYSE) failed to meet Wall Street’s estimates of quarterly revenue Wednesday. The company warned that a steep rise in fuel costs would cause a pretax loss for its fourth quarter.

Multi-year highs in oil prices threaten the recovery of the airline industry. The third quarter’s adjusted operating costs for Delta amounted to nearly 20%, largely due to high fuel prices.

The airline expects to profit from the strong holiday travel demand, as well an improvement in international corporate travel. In November, the United States will reopen its borders and allow fully-vaccinated travellers from 33 countries to fly to America. This includes China, most of Europe, and India.

In a note before earnings, Stephen Trent, Citi analyst, stated that investors will likely be weighing the rate of demand recovery in particular on Trans-Atlantic corridors, and recent price pressure.

According to airline, 35% of transatlantic travel revenue in the third quarter was higher than the 2019 comparable period.

Delta is the first U.S. major airline to announce financial results. It forecasts an adjusted fuel price per gallon between $2.25 – $2.40 in the fourth quarter. For the fourth quarter of 2018, the fuel price per gallon adjusted was $1.94

As a result of a rapidly-growing Delta variant, the demand for air travel dropped in August and September by 34% to $8.28 trillion from 2019, adjusted operating revenues fell 34%.

According to Refinitiv data, analysts have an average estimate of $8.40 Billion.

From $1.50 Billion or $2.31 Per Share in 2019, net income decreased to $1.21Billion or $1.89/share in the three month ended Sept. 30, from $1.50 Billion or $2.31/share in 2019.

The company made $194million, which is 30 cents per share, excluding all other items.