Delta Air Lines says elevated airfares are likely to persist despite a recent drop in oil prices, as it reported record-high quarterly revenue and strong travel demand. CEO Ed Bastian told CNBC that the airline has been able to pass along 60% of its extra fuel costs to consumers and plans to eventually pass along all elevated costs, with the company posting a $1.4 billion profit. Bastian noted that Delta's premium revenue grew 17% year-over-year while main cabin sales increased 8%, and that the airline's customers are at the top end of the K-shaped economy with significant wealth accumulation. He added that airfares, which are up 12 to 15% from last year, remain a tremendous bargain amid overall inflation, and that flyers are still willing to spend on travel due to a post-COVID effect.
Delta Air Lines IncDelta reports ability to pass on fuel costs and expects higher airfares to persist, boosting revenue and profit.