Delta Air Lines has raised its first-quarter revenue outlook, citing stronger-than-expected demand across both corporate and leisure travel segments despite a sharp rise in jet fuel prices.
In a filing with the US Securities and Exchange Commission ahead of CEO Ed Bastian’s appearance at the J.P. Morgan Industrials Conference in Washington, the airline said it now expects first-quarter revenue of $15.0bn to $15.3bn, representing high-single-digit growth year-on-year.
That compares with Delta’s earlier guidance for 5–7% revenue growth, and exceeds consensus estimates of around $14.67bn.
The airline attributed the stronger outlook to “accelerated trends in consumer and corporate demand” and strength across its domestic and international networks.
Despite the surge in fuel prices, Delta maintained its full-year earnings guidance of $6.50–$7.50 per share, saying it remains “well positioned to navigate the current environment”.
Speaking at the conference, Bastian said demand has remained exceptionally strong through the quarter, with the carrier recording eight of the ten highest sales days in its history.
“Sales have been very strong all quarter long,” he said, adding that bookings over the past week were up 25% year-on-year.
Demand growth has been broad-based across the network, including corporate travel, international markets and premium leisure segments.
The airline noted a modest decline in point-of-sale bookings from Europe following the outbreak of war in the region, though the impact is limited given that less than 20% of its transatlantic sales originate there.
Bastian emphasised that Delta’s premium-focused strategy provides resilience against rising costs and economic uncertainty.
Approximately 90% of the airline’s revenue is generated from premium products, including premium cabins, loyalty programmes and co-brand credit card partnerships.
“Our premium brand gives us a position of strength in which to price for higher fuel,” he said.
He added that the industry has already begun increasing fares to recover rising fuel costs, noting that pricing has been raised twice in recent weeks.
The airline also benefits from its Monroe refinery, which provides a partial hedge against jet fuel refining margins.
Jet fuel prices have nearly doubled since the start of the year, driven not only by higher crude prices but also by widening refining spreads.
Delta estimates that the March fuel spike alone will add around $400m in additional costs, while winter storms reduced capacity by roughly two percentage points during the quarter.
Nevertheless, the airline reaffirmed its first-quarter EPS guidance of $0.50–$0.90, supported by strong revenue performance and pricing power.
Bastian argued that the current environment could ultimately strengthen the position of more profitable airlines.
“When you double your number-one cost item overnight, carriers that don’t have margin simply can’t absorb that,” he said. “That tends to make the strong carriers stronger.”
Delta said corporate travel remains robust, with every sector it tracks reporting double-digit growth year-on-year.
Industries including financial services, technology and defence have seen corporate travel demand increase by more than 20% compared with last year.
Bastian also pointed to the resilience of higher-income consumers.
“The economy is still very strong, particularly at the top end of the ‘K-shaped’ recovery that we serve,” he said. “Travel and experiences remain at the top of their discretionary spending list.”