Several airlines raised their revenue expectations for the first quarter on Tuesday, despite carriers dealing with higher jet fuel prices since the war in Iran started.
Delta Air Lines CEO Ed Bastian told CNBC's Phil LeBeau that Delta had taken a $400 million hit so far for the fourth quarter, but that demand has been "really, really great," which was leading to higher revenue growth than the airline had originally guided for.
"The higher revenue is offsetting the cost of not just the fuel, but we've also had a pretty tough winter season in terms of storms," he said. "So you put that all together, we're expecting to come in within the original guidance of 50 to 90 cents EPS."
Delta had previously forecast an increase in sales of as much as 7% in the first three months of 2026 and adjusted earnings of between 50 cents per share and 90 cents per share for the first quarter. The airline now said it expects first-quarter revenue to grow at a high-single-digit percentage.
Meanwhile, American Airlines said in a securities filing Tuesday that it expects total revenue to increase by more than 10%, compared with previous expectations of 7% to 10%, due to stronger-than-expected demand.
"The revenue growth for American in the first quarter is incredibly strong, and we see that progressing as we move throughout the year," CEO Robert Isom said at a JPMorgan conference Tuesday.
Shares of Delta closed up 6%, while American ended the day up 3%.
— Source: CNBC Business (https://www.cnbc.com/2026/03/17/airline-guidance-iran-war-oil.html)
