Delta’s boss says strong demand has let airlines pass on much of a sharp rise in fuel costs to passengers, keeping higher fares in place for now.
01Summary
- 01Delta CEO Ed Bastian said on CNBC on Friday that higher ticket prices may last as long as demand stays strong.
- 02Delta’s adjusted revenue for the third quarter was $17.6 billion, up 16% year on year but slightly below analysts’ estimate of $17.67 billion.
- 03The airline said adjusted jet fuel costs rose 62% from a year earlier, adding $1.6 billion in the quarter.
- 04Average domestic trip prices reached $445.26 in the second quarter, while airline ticket prices rose about 23% year on year, according to US data cited in the story.
- 05Delta cut its full-year profit outlook to $5.10 to $5.60 per share from $6.50 to $7.50 and missed Wall Street’s earnings estimate for the first time in two years.
02Why it matters
Higher fares and resilient demand are helping airlines offset expensive fuel, which can support revenues across the sector. But if fuel costs stay elevated, passengers may keep facing pricier tickets.
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