Bullish investors in Delta Air Lines (NYSE: DAL) argue that the company’s shift toward premium cabin revenue, loyalty programs, and income from its co-branded American Express credit card will help it consistently cover its costs, even through the industry’s inevitable…
latility. And with jet fuel prices doubling in 2026 as a result of the conflict in the Persian Gulf, now is the perfect time to test out the theory
Delta’s challenges in 2026 Things change quickly in the travel industry. When Delta’s management turned up to present at the J.P. Morgan Industrials Conference in mid-March, it had many positive things to say about the market.
In fact, it raised its revenue guidance for the first quarter from an increase of 5%-7% to “high single digits” on the back of what CEO Ed Bastian described as “very, very strong all quarter long” sales with particular strength in the March spring season, which is typically the season when travel bookings really start to accumulate. While the Iran war began in late February, it was too early to tell what the consequences would be in mid-March. By May, the steep rise in jet fuel prices caused by the closure of the Strait of Hormuz sent crude oil prices above $100, and the jet fuel crack spread (the difference between crude oil and jet fuel prices) to exceptional heights.