Delta Air Lines CEO Ed Bastian stated on Friday that despite the recent drop in oil prices from highs seen in recent years, the current higher ticket prices are expected to continue.
In an interview with CNBC, Bastian mentioned that due to strong demand, a more diverse selection of flight options, and the aviation industry’s increased professionalism after learning from past losses, the airline may maintain its high ticket prices and is unlikely to immediately expand capacity after the drop in oil prices.
Regarding the high ticket prices, he told CNBC, “I believe this is sustainable.”
Since the outbreak of the Iran war at the end of February this year, with Iran attacking commercial ships and effectively blocking the Strait of Hormuz, international oil prices have skyrocketed, leading to a significant increase in aircraft fuel costs. Airlines have taken measures to cope, including raising flight ticket prices and baggage fees, passing on the higher fuel costs to consumers.
Although oil prices have significantly declined since the US and Iran reached a memorandum of understanding for peace talks, the aviation industry has not immediately adjusted pricing. Bastian mentioned in the interview on Friday that this pricing strategy is expected to continue, allowing the company to achieve its profit goals for the year.
Following a record increase in fuel prices earlier this year, airlines have scaled back expansion plans, cut unprofitable flights, and substantially raised ticket prices.
According to the latest data from the US federal government, air ticket prices in May increased by nearly 27% compared to the same period last year. However, airline executives have stated that they have not fully passed on the increased fuel costs to consumers.
Bastian stated that over the past few months, Delta Air Lines has passed on around 60% of the increased fuel costs to consumers, and this percentage is expected to be close to 100% for this quarter.
Delta Air Lines’ net income for the second quarter decreased by 25% year-on-year to $1.6 billion, or $2.44 per share, but operating revenue increased by 19% compared to the same period in 2025, reaching $19.76 billion.
Delta Air Lines’ refinery in Trainer, Pennsylvania, was also a highlight, as its revenue in the second quarter soared by 83% year-on-year to $2.09 billion.
(Reference: CNBC)