Delta Air Lines announced on Tuesday that it is sticking to its profit forecast for the first quarter while also increasing its revenue expectations. This comes despite the challenges posed by soaring jet fuel prices since the onset of the conflict in Iran. CEO Ed Bastian shared insights with CNBC’s Phil LeBeau, revealing that Delta has faced a $400 million impact during the fourth quarter. However, he emphasized that strong demand is fueling revenue growth, surpassing earlier predictions.
“The demand has been really, really great,” Bastian said, adding that increased revenue is helping to counterbalance the rising fuel costs and the adverse weather conditions experienced during a difficult winter. Delta continues to expect earnings per share (EPS) to fall between 50 and 90 cents, consistent with its original guidance.
Previously, Delta forecasted a sales increase of up to 7% for the first three months of 2026, highlighting its anticipated adjusted earnings in the same range. Following this positive news, Delta’s stock rose by 5% during premarket trading.
Jet fuel remains a significant expense for airlines, accounting for at least 20% of costs, depending on the airline. Reflecting on the sector’s landscape, United Airlines CEO Scott Kirby suggested earlier this month that rising airfares are inevitable as carriers grapple with escalating fuel expenses. In a regulatory filing, Delta attributed its enhanced revenue forecasts to strong demand, noting robust performance across its main cabin, premium offerings, and loyalty programs. The airline reported growth in both domestic and international unit revenue, which is up by mid-single digits compared to the previous year.
Bastian highlighted that most of Delta’s revenue comes from travelers willing to spend more, particularly among corporate clients. “We’ve seen eight of the top 10 sales days in our history this quarter, and five of those just within the last week of March,” he said, reflecting the airline’s resilience even amid geopolitical tensions. He noted a 25% year-over-year increase in bookings, indicating robust consumer sentiment.
Last quarter’s figures had shown softer results as Delta navigated customer hesitancy stemming from tariff concerns, but current momentum suggests a positive turnaround.
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Categories: Delta Air Lines, Airline Industry, Business News
Tags: Delta, earnings forecast, jet fuel prices, corporate travel, revenue growth
Original Source: https://www.cnbc.com/2026/03/17/airline-guidance-iran-war-oil.html
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Publish Date: 2026-03-17 16:57:00
