Delta Air Lines said Wednesday that it expects higher fuel costs tied to the Iran war to exceed $2 billion through June, prompting the carrier to remain cautious about its outlook while maintaining a previous full-year profit forecast.
CEO Ed Bastian said on an earnings conference call that high fuel prices had become the biggest pressure point for the airline industry, forcing carriers to reassess pricing, capacity and spending plans.
Bastian said Delta was considering additional fare increases beyond those already implemented, as airlines weigh how much of the higher fuel burden can be passed on to consumers without hurting demand.
Despite the cost pressures, Delta kept its 2026 earnings-per-share forecast unchanged at $6.50 to $7.50.
“I’m not walking it back,” Bastian said about the forecast, adding that the company would be in a better position to update guidance once it had greater clarity on how long elevated fuel prices would persist.
The Atlanta-based carrier also said it plans to make “meaningful capacity reductions,” trimming capacity by about 3.5% from levels planned at the start of the quarter. Bastian said the cuts would likely affect less attractive travel periods, including overnight and midweek flights.
He signaled that Delta could move to preserve capital expenditure and cash flow if higher fuel prices remain in place for an extended period.
Last month, Delta said it had already seen a $400 million increase in fuel costs in the first two weeks of March as oil prices climbed above $100 per barrel.
By Mucahithan Avcioglu
Anadolu Agency
energy@aa.com.tr
