For most of 2026, airfares have seen record price jumps due to the higher cost of oil amid the Iran war. But that hasn’t stopped many travelers from continuing to fly in droves.
Now one airline CEO says travel demand shows no signs of slowing down, even into 2027.
“We’re not meeting any resistance. Consumers understand why prices are up,” Delta Air Lines CEO Ed Bastian said in an interview with CNN. “We can see the holidays, we can see the first part of next year through advance bookings. There’s no slow down in sight.”
Travelers are weathering some of the most significant airfare markups in years. Ticket prices for Thanksgiving and December holiday travel in 2026, for example, have reached 10-year highs, according to recent data from flight analytics company Hopper.
Bastian noted that although the airline is focusing more and more on premium fliers, customers across all cabin classes are absorbing the costs of higher airfares.
“We expect prices to be about $6 billion higher than they were a year ago, and that’s a substantial shock,” Bastian said.
However, as the so-called “K-shaped” economy becomes the new standard across the airline industry, Delta is continuously zeroing in on the top arm of the K, where it sees the largest profits.
“Over 60% of our revenues are not in our main cabin,” said Bastian. “It’s coming from the premium side, and that’s growing double digits.”
The CEO noted that Delta’s core consumer demographic has minimum household earnings of $100,000 a year, and about 40% of households in the United States meet that definition.
“95% of our revenues come from that demographic,” Bastian said. “And that demographic, if you look post-COVID, has accumulated enormous wealth.”
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