Delta, American Raise Revenue Guidance, Citing Growth in Demand Delta Air Lines and American Airlines raised their revenue expectations for the first quarter on Tuesday, despite facing higher jet fuel prices since the war in Iran began. Delta CEO Ed Bastian told CNBC that demand growth is offsetting the rising cost of fuel, with the airline reporting strong performance across main cabin, premium, loyalty programs, and other segments. Both carriers adjusted their revenue guidance ahead of the JPMorgan industry conference, reflecting increased confidence in market conditions. Delta acknowledged a $400 million hit to its fourth-quarter earnings but emphasized that demand has been "really, really great," leading to higher revenue growth than initially anticipated. Bastian noted that the increased revenue is helping counterbalance not only fuel costs but also the impact of a challenging winter season marked by severe weather. He added that the airline expects to meet its original earnings guidance of 50 to 90 cents per share for the first quarter. Delta had previously forecast a 7% sales increase and adjusted earnings between 50 and 90 cents per share. American Airlines also revised its revenue outlook, projecting a more than 10% increase for the first quarter, up from its earlier expectation of 7% to 10%. CEO Robert Isom highlighted the "incredibly strong" revenue growth, stating that the trend is expected to continue throughout the year. Both airlines faced significant financial pressures, with American reporting a $400 million expense hit for the first quarter due to fuel costs. Isom emphasized the industry's resilience, noting that the company is prepared to adapt to ongoing challenges.#delta_air_lines #american_airlines #ed_bastian #robert_isom #jpmorgan_conference
