Delta Air Lines (DAL) has maintained its profit guidance and raised its revenue guidance despite flight cancelations and soaring jet fuel costs caused by the war in Iran.
Delta CEO Ed Bastian said that the carrier has taken a $400 million U.S. hit so far from the disruption caused by the Iran war, but that demand has been “really, really great.”
As such, Delta is in a position to raise its sales guidance, said Bastian.
The carrier has maintained its profit guidance that calls for $0.50 U.S. to $0.90 U.S. in earnings per share (EPS).
Delta also raised its revenue guidance, saying it now expects sales growth of as much as 7% in the first three months of this year.
Jet fuel is an airlines’ second-biggest cost and typically accounts for a fifth of total expenses. That cost has been rising with oil and gas prices surging in recent weeks.
Regardless, Delta said it is raising its revenue guidance due to momentum in demand, citing strength across the main cabin, premium seating, and loyalty reward customers.
Delta CEO Bastian also said that the airline currently has the strongest balance sheet in its history.
DAL stock has gained 30% in the last 12 months to trade at $60.84 U.S. per share.
