Delta’s jet fuel expenses jumped $2 billion year-over-year as geopolitical tensions drove crude prices higher in the second quarter.
Delta Air Lines reported spending over $4 billion on fuel in the second quarter, a $2 billion increase from the same period last year. The surge was driven by soaring energy prices amid the war in Iran and the closure of the Strait of Hormuz, which disrupted global oil supplies.
The airline’s Pennsylvania refinery partially offset the cost, generating $2.09 billion in revenue year-to-date and reducing jet fuel expenses by $0.11 per gallon. US Gulf Coast jet fuel swaps, a key benchmark, remain about 60% higher than at the start of the year.
Investors will watch American Airlines’ upcoming earnings for signs of whether its projected $4 billion annual fuel cost increase is materializing. Higher fuel bills threaten profitability, particularly for carriers with limited hedging or operating in competitive markets.