
Delta Air Lines ' profit goal is in reach this year as the carrier passes along higher fuel costs to customers, pricing power CEO Ed Bastian expects to last even as oil prices drop from multiyear highs.
"I think it's sustainable," Bastian told CNBC in an interview. He said fares will likely stay strong thanks to robust demand, more diverse seat options, and a more disciplined airline industry that's learned from the past and isn't likely to expand capacity as soon oil falls.
Delta on Friday forecast third-quarter per-share earnings of between $2.00 and $2.50, compared with analysts' estimates of $2.02 a share for the period. The company also projected revenue would be up in the mid-teens compared with the July-through-September period of 2025. For the full-year, the carrier reaffirmed its January per-share earnings forecast of between $6.50 and $7.50.
Here's what Delta reported for the second quarter compared with what Wall Street was expecting, based on consensus estimates from LSEG:
Earnings per share: $1.56 adjusted vs. $1.48 expected
$1.56 adjusted vs. $1.48 expected Revenue: $17.67 billion adjusted vs. $17.53 billion expected
Bastian said demand is strong across the board, noting that Delta, the most profitable U.S. airline, caters to higher-income customers in the K-shaped economy.
Indeed, its premium seat sales outpaced the back of the plane in coach. Its premium tickets like first class brought in $6.92 billion in revenue for the quarter, while the main cabin reported $6.85 billion in revenue.
Bastian said World Cup demand was stronger than expected, including from inbound visitors to the U.S. In an earnings release, the airline also said corporate travel rose in the second quarter, with the aerospace and defense, banking, and automotive sectors leading growth.