Delta Raises Q1 Revenue Forecast Amid Fuel Surge

Delta Air Lines raised its first-quarter revenue growth forecast on Tuesday, projecting high single-digit increases despite surging jet fuel prices driven by escalating tensions in the Middle East. The Atlanta-based carrier, which maintained its adjusted earnings per share guidance at 50 to 90 cents, attributed the upgrade to robust demand in both leisure and business travel as March advanced. Shares of Delta rose about 4 percent in premarket trading, following a 3.5 percent gain the previous day.

The revision marks an improvement from Delta's January outlook of 5 to 7 percent revenue growth, with the company now anticipating up to $15.3 billion in first-quarter sales. Executives cited accelerating momentum across main cabin, premium, loyalty, and corporate segments, noting that domestic and international unit revenues are expanding in the mid-single digits year over year. "Demand has been really, really great," Delta CEO Ed Bastian said in an interview with CNBC, adding that higher revenues are offsetting not only a $400 million fuel cost spike in March but also disruptions from a harsh winter storm season. Bastian emphasized the airline's strongest balance sheet in its...