Delta Air Lines
Wikipedia

Delta Air Lines raised its first-quarter revenue guidance on Tuesday after CEO Ed Bastian told investors the carrier had logged eight of its top 10 sales days in history this quarter, with bookings running 25 per cent above year-ago levels despite a sharp rise in jet fuel costs tied to the war in Iran.

Speaking at the annual J.P. Morgan Industrials Conference, Bastian said five of those record days came within the past fortnight. Delta now expects first-quarter revenue to grow at a high-single-digit rate, up from its earlier forecast of 5 to 7 per cent.

In an 8-K regulatory filing that morning, the airline cited strength across premium seats, corporate accounts, loyalty members, and the main cabin. Delta also said it holds the strongest balance sheet in its history.

American Airlines and United Airlines delivered similar updates at the same event. American CEO Robert Isom said first-quarter revenue would grow by more than 10 per cent year on year - the largest quarterly increase in the carrier's history, worth roughly $1.3 billion (£1.02 billion). Eight of America's top 10 revenue booking days also fell this quarter, according to a conference transcript published by Investing.com.

United CEO Scott Kirby said the first 10 weeks of 2026 were the carrier's strongest ever for ticket sales, with the past fortnight the best on record, the Associated Press reported.

Record Airline Bookings Absorb $400 Million Fuel Hit

Jet fuel prices have climbed more than 50 per cent since hostilities broke out on 28 February, straining oil supplies around the Strait of Hormuz. Bastian told CNBC the added cost reached roughly $400 million (£315 million). American Airlines reported a similar figure.

'The higher revenue is offsetting the cost of not just the fuel, but we've also had a pretty tough winter season in terms of storms,' Bastian said.

Most of Delta's strength comes from higher-spending customers - corporate travellers, premium leisure flyers and loyalty members, Bastian said. He acknowledged the main cabin had not shown the same momentum, and that reaching the top of Delta's guidance would depend on economy passengers picking up. Year-on-year comparisons also flatter the picture, as bookings during the same period last year were soft amid tariff-driven uncertainty.

Airlines have already raised ticket prices twice in the past fortnight. Analysts say travellers appear to be locking in fares before further increases, which is accelerating purchases rather than dampening them.

Budget Carriers Feel the Squeeze as Fuel Costs Spike

Southwest Airlines
Wikipedia

Southwest Airlines CEO Bob Jordan said at the same conference that his carrier's January forecast remained 'fully on track.' JetBlue raised its operating revenue guidance to a 5 to 7 per cent increase, up from a previous estimate of flat to 4 per cent.

Frontier Airlines was less fortunate. The budget carrier said its full-year 2026 guidance was under review, with jet fuel now expected to average about $3.00 (£2.36) per gallon for the first quarter - up from the $2.50 (£1.97) it had previously forecast - adding $45 million to $50 million (£35 million to £39 million) in fuel expenses, Reuters reported.

Kirby said the divide between premium-heavy carriers and the rest could widen further if fuel costs stay elevated. 'Where this gets really interesting is if fuel prices stay higher for longer,' he told investors at the conference.

Delta shares closed up 6 per cent on Tuesday. American gained 3 per cent. United, which did not update its guidance, said it has a goal this year to fully offset the increase in fuel prices.

Operational disruptions from the conflict continue. More than 25,000 Middle East flights have been cancelled since hostilities began, with airspace over parts of the region closing intermittently over missile threats.

Isom said American expects more than 10 per cent unit revenue growth in March, with that strength continuing into April and May.

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