Bastian pointed to strong performance across core, and premium segments, while maintaining Delta’s first-quarter earnings outlook despite pressures from fuel costs and adverse weather conditions.
Delta Air Lines is feeling the heat from surging oil prices. Ed Bastian, CEO of Delta Air Lines Inc. (DAL), has warned that jet fuel prices have nearly doubled this quarter, creating a $400 million cost headwind even as travel demand remains strong, helping offset the impact.
Speaking in a CNBC interview, Bastian stated that a sharp increase in jet fuel prices has significantly raised expenses this quarter, even as customer demand continues to exceed expectations.
“Jet fuel prices have almost doubled just since the start of quarter. That’s a fairly significant hit for us about $400 million in the quarter. That said the demand drive has been great.”
-Ed Bastian, CEO, Delta Air Lines
Earlier this month, the United States and Israel commenced strikes on Iran aimed largely at stopping Tehran’s nuclear program. The conflict has since spread across the Middle East, disrupting oil shipments through the vital Strait of Hormuz.
Delta Airlines' stock traded over 5% higher in Tuesday’s premarket.
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