Delta Air Lines expects a more than $2 billion increase in jet fuel prices through June, while reducing capacity growth plans in the short term amid rising fuel costs and geopolitical unrest in the Middle East.
“The war in the Middle East has driven an unprecedented spike in jet fuel, with prices roughly double what they were earlier in the year,” said Chief Executive Officer Ed Bastian during a Wednesday morning earnings call. The Atlanta-based carrier will be “meaningfully reducing” capacity until the environment improves.
Bastian added that “it is premature to project the full year” and won’t provide an updated outlook at this time, highlighting the industry’s volatile situation with the ongoing global conflict.
The airline also sees a $300 million benefit from its refinery near Philadelphia.
“Delta is best positioned to navigate this environment, with a leading brand, strong financial foundation, and the benefit of our refinery,” Bastian said. “And while the recent fuel spike is currently impacting earnings, I’m confident this environment ultimately reinforces Delta’s leadership and accelerates long-term earnings power.”
The airline’s first-quarter revenue increased 9.4% year over year to $14.2 billion, above prior expectations of $14 billion. The carrier cited strength from premium, loyalty, and corporate spending.
Passenger revenue from its premium products, like Delta One and Delta Premium Select fares, grew 14%. Main Cabin revenue saw growth for the first time since late 2024, up 1%. The carrier’s remuneration from American Express also increased 13% to $2 billion.
“The economy is strong, corporate customers are moving, and the first quarter has been a step up from what we saw exiting last year,” said Chief Commercial Officer Joe Esposito. “Most of those are in premium-type cabins and merchandising.”
Delta raised checked baggage fees on Tuesday in response to higher fuel prices, joining rival carriers United and JetBlue in the move. The airline’s Tel Aviv flights from New York and Atlanta remain paused until at least early September.
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