Airlines affirm earnings guidance as jet fuel prices surge, with Delta and United projecting $4 billion and $6 billion cost increases in 2026.
Delta Air Lines and United Airlines maintained or raised earnings outlooks for the second quarter despite a sharp rise in jet fuel costs. Higher crude oil prices and tight supplies through the Strait of Hormuz drove fuel expenses significantly higher, pressuring operating income year-over-year.
Both carriers cited fuel as the primary driver of increased operating expenses. Delta expects fuel costs to rise by $4 billion in 2026 compared to 2025, while United projects a $6 billion increase over its original estimate. Despite the headwind, management teams signaled confidence in offsetting the impact.
Shares of both airlines have been viewed as undervalued, with investors weighing the fuel cost surge against broader demand trends and cost management strategies.