At least one United States airline is forecasting lower profits and stunted expansion plans due to the high cost of jet fuel.
Delta Air Lines, one of the first U.S. carriers to report its first quarter earnings amid the Iran war, said on Wednesday that it expects its profits in the second quarter of 2026 to be lower than originally expected.
The carrier’s CEO Ed Bastian said that executives are taking steps such as “meaningfully reducing capacity growth, with a downward bias until the fuel environment improves.” That means Delta will nix capacity growth plans for the second quarter, cutting supply by about 3.5 percentage points, according to Reuters.
The airline’s first quarter earnings were in line with previous guidance, but its forecast for the second quarter shows the enormous strain carriers face with surging fuel costs.
Fuel is often the largest or second-largest expense for airlines, and aviation fuel prices have almost doubled since the war began at the end of February.
For Delta, that means a fuel bill that could increase by $2 billion compared to 2025’s prices, Reuters reports.
However, Bastian was optimistic about the airline’s ability to recapture profits and recoup higher costs, noting that Delta also has the benefit of owning its own fuel refinery.
“In the June quarter, we expect to lead the industry with $1 billion of profit. And while the recent fuel spike is currently impacting earnings, I’m confident this environment ultimately reinforces Delta’s leadership and accelerates long-term earnings power,” Bastian said on Wednesday.
Delta and other carriers have also raised fees for checked baggage in an effort to balance out higher fuel prices.
Other signs of hope emerged on Wednesday morning, as the U.S. and Iran agreed on a two-week ceasefire that would give the nations time to negotiate and see increased access to oil in the meantime.
Reuters reported that U.S. airline stocks jumped by double digits on Wednesday in hopes that fuel prices would soon decrease.
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