Delta Air Lines maintained its first-quarter profit guidance and raised its revenue expectations on Tuesday, despite facing increased fuel costs since the onset of conflict in Iran. CEO Ed Bastian told media that the airline has incurred a $400 million loss in the fourth quarter as a result so far, but demand remains "exceptionally strong," leading to revenue growth exceeding the company’s initial projections. “Higher revenue has not only offset fuel expenses, but we also faced a particularly severe winter storm season,” he stated. “Taking these factors into account, we expect earnings per share to fall within the original guidance range of 50 to 90 cents.” Previously, Delta had projected sales growth of up to 7% for the first three months of 2026, with adjusted earnings per share between 50 and 90 cents for the quarter. Shares of Delta Air Lines rose 5% in premarket trading. Jet fuel is the second-largest expense for airlines, accounting for one-fifth or more of costs depending on the carrier. United Airlines CEO Scott Kirby said in early March that airfares may rise as carriers seek to cover escalating fuel prices. In an 8-K filing on Tuesday morning, Delta indicated it had raised its revenue outlook due to strong demand momentum, noting robust performance in main cabin, premium cabin, and loyalty program segments. The airline also reported mid-single-digit year-over-year growth in both domestic and international unit revenue. Delta added that it maintains the strongest balance sheet in its history. Bastian noted that a significant portion of the airline’s revenue comes from higher-spending leisure travelers and corporate clients who continue to prioritize travel. “This quarter, we recorded eight of the ten highest sales days in company history, five of which occurred in the final week of March alone,” he said. “Even amid ongoing conflict, our revenue and bookings have increased 25% compared to the same period last year.” The year-over-year growth was aided by a lower comparison base, as bookings in the prior-year period were affected by customer hesitation due to tariff concerns.
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