Delta Air Lines announced Tuesday that it maintains confidence in its first-quarter earnings projections while boosting revenue forecasts, even as jet fuel costs surge due to ongoing Middle East tensions.
The Atlanta-based airline reported that both leisure and business travel demand has strengthened throughout March, with robust performance across standard, premium, and frequent flyer program revenues.
Investor confidence responded positively, with Delta’s stock price climbing 3.55% during pre-market trading sessions.
The carrier has revised its first-quarter revenue growth projection upward to high single-digit percentages, surpassing its previous estimate of 5% to 7% growth.
Delta continues to target adjusted earnings per share between 50 cents and 90 cents for the quarter.
Company officials stated they remain strategically positioned to handle current market conditions and are prepared to adjust flight capacity if fuel costs remain high.
Aviation fuel prices have skyrocketed more than 50% following U.S. and Israeli military actions against Iran in late February, as Iranian retaliation across the oil-rich region has disrupted supply chains and closed critical shipping lanes.
For airlines, fuel represents the second-highest operational cost behind employee wages, generally comprising 20% to 25% of total operating expenses. Current jet fuel prices range between $150 and $200 per barrel, a significant increase from approximately $100 per barrel before the conflict began.
