Delta Airlines And American airlines On Tuesday, revenue expectations for the first quarter were raised, despite carriers facing higher jet fuel prices since the start of the war in Iran.
Delta CEO Ed Bastian told CNBC’s Phil LeBeau that Delta had a $400 million loss so far for the fourth quarter, but that demand was “really, really strong,” leading to higher revenue growth than the airline had initially expected.
“The higher revenues not only offset the cost of fuel, but we also had a pretty tough winter season in terms of storms,” he said. “So if you put all that together, we expect to meet the original guidance of 50 to 90 cents per share.”
Delta previously forecast sales growth of up to 7% in the first three months of 2026 and adjusted earnings of between 50 cents per share and 90 cents per share for the first quarter.
At the same time, American said in a securities filing that it now expects total revenue to rise more than 10%, compared with previous expectations of 7 to 10%, due to stronger-than-expected demand.
“American’s revenue growth in the first quarter is incredibly strong, and we see that growing throughout the year,” CEO Robert Isom said at a JPMorgan conference Tuesday.
Shares of Delta and American were up about 5% in premarket trading.
Jet fuel is the second largest cost for airlines and accounts for a fifth or more of expenses, depending on the carrier. United Airlines CEO Scott Kirby told CNBC in early March that higher airfares were likely coming as airlines cover rising fuel costs.
Isom said Tuesday that American would also take a loss of about $400 million on its first-quarter expenses, in part because of higher fuel prices.
“As we look at all the turbulence the industry is currently experiencing, we are making sure we are prepared to deliver on our promises no matter what comes our way,” Isom said.
In an 8-K filed Tuesday morning, Delta said it was raising its revenue forecast due to demand dynamics, citing strength in main cabin, premium, loyalty and more. The airline also said its domestic and international unit revenues increased in the range of 5% year-over-year.
Delta added that it has the strongest balance sheet in company history.
Bastian said most of Delta’s revenue comes from higher-spending customers who want to continue traveling, as well as corporate customers.
“We had eight of the 10 best sales days in our history this quarter, and five of them in the last two weeks, in the last week of March,” he said. “Even with the war, our revenue and bookings were up 25% year over year.”
Last quarter’s bookings were a more subdued comparison as airlines faced customer withdrawals due to pricing concerns.