Delta raises revenue guidance as CEO says travel demand has been great

Delta Airlines The company is maintaining its first-quarter earnings guidance and raising revenue forecasts, despite airlines dealing with rising jet fuel prices since the start of the war in Iran, the company said on Tuesday.

CEO Ed Bastian told CNBC’s Phil LeBeau that Delta has generated $400 million in profit so far in the fourth quarter, but that demand has been “really impressive,” resulting in higher revenue growth than the airline had originally guided for.

“The higher revenues offset not only the cost of fuel, but we also had a very difficult winter season in terms of storms,” he said. “If you put it all together, we expect to come in within original guidance of 50 to 90 cents per share.”

Delta had previously expected a sales increase 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 in the first quarter.

Delta stock rose 5% in pre-market 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 airfares are likely to rise en route as airlines cover higher fuel costs.

In the 8K order filed Tuesday morning, Delta said it was raising revenue guidance due to momentum in demand, citing strength across main cabin, premium, loyalty and more. The airline also said revenues from its domestic and international units are growing in mid-single digits year-on-year.

Delta added that it has the strongest balance sheet in its history.

Most of Delta’s revenue comes from high-spending customers who still want to fly, as well as from corporate customers, Bastian said.

“We saw eight of the 10 best sales days in our history this quarter, and five of them were just in the last two weeks, just in the last week of March,” he said. “Even as the war continues, our revenues and bookings are up 25% year-on-year.”

Q4 bookings are a softer comparison as the airline dealt with customer withdrawal due to tariff concerns.