Delta CEO says airline will 'meaningfully' cut growth plans, sees $300 million boost from its refinery
Delta is scaling back its flight plans as fuel costs grow to reduce its expenses.
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In this article DAL Follow your favorite stocks CREATE FREE ACCOUNT A Delta Air Lines Airbus A330 airplane departs from Harry Reid International Airport en route to Atlanta on March 15, 2026 in Las Vegas, Nevada. Kevin Carter | Getty Images Delta Air Lines CEO Ed Bastian said the carrier will "meaningfully reduce" its capacity growth plans in the near term as fuel costs soar, solidifying a pullback from airlines that have been roiled by a historic run-up in jet fuel due to the Middle East war . Shares were up more than 11% in premarket trading, extending gains U.S. carriers saw after oil prices dropped. Delta on Wednesday forecast adjusted per-share earnings of $1 to $1.50 in the second quarter, below the $1.52 a share analysts were expecting, with revenue up in the "low-teens" percentage points compared with a year earlier, above the roughly 10% Wall Street forecast. Capacity will likely be flat on the year, Delta said. Delta said its fuel bill will be $2 billion higher this quarter because of the spike in fuel costs. Here's what Delta reported for the first quarter compared with what Wall Street was expecting, based on consensus estimates from LSEG: Earnings per share: 64 cents adjusted vs. 57 cents expected Revenue: $14.2 billion adjusted vs. $14 billion expected Delta is the first of the major U.S. airlines to report first-quarter results, though United Airlines , Delta and others had already been trimming capacity for the quarter. Less capacity can mean higher airfare, which is already on the rise. Delta also joined JetBlue Airways and United in raising its checked bag fees on Tuesday. Carriers around the world are more even more affected by the rise in fuel costs because of their countries' reliance on imports and have added fuel surcharges or announced fare increases. Bastian said demand remains strong, despite the higher travel costs, and that Delta's customer base continues to spend on travel, particularly for higher-end products like more spacious seats. S...
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