Delta CEO: Ticket Prices May Not Drop Even if Oil Prices Fall

Delta Air Lines has reported that it plans to spend an additional $2 billion on fuel during the three-month period ending in June, driven by sharp increases in jet fuel prices due to tensions with Iran. Despite this cost surge, the company aims to close the period with a significant profit.

To offset these high costs, the airline announced it will trim its flight schedules by approximately 3.5% in the second quarter. CEO Ed Bastian, speaking before the ceasefire agreement reached Tuesday evening, noted that this capacity cut—along with higher ticket prices and surcharges—would help cover about half of the increased fuel expenses.

While oil prices dropped sharply on Wednesday following the ceasefire announcement, Bastian stated it is still too early to assess the definitive impact on airline operations. He mentioned that volatility in the fuel market makes analyzing full-year projections challenging.

Delta expects to earn a pre-tax profit of approximately $1 billion in the current quarter, with revenues projected to rise by at least 10% compared to last year. Company officials emphasized that flight demand remains resilient despite the rising ticket prices.