Delta Will Spend $2 Billion Extra in Fuel Costs - But Still Expects a $1 Billion Profit. Here's How.

"Delta will cut about 3.5% of flights in the second quarter, raise fares and increase bag fees - moves CEO Ed Bastian says could recover up to half of the higher fuel costs."

"Delta reported $15.9 billion in revenue for the first three months of the year, with particularly strong sales of premium seats and credit card spending."

"The demand set has been strong across all geographies, across all products, categories. It's a healthy travel time."

Delta Airlines faces $2 billion in increased quarterly costs due to rising fuel prices following the Iran war. To mitigate these costs, Delta will reduce flights by 3.5%, raise fares, and increase bag fees. CEO Ed Bastian estimates these measures could recover up to half of the additional fuel expenses. Despite the price hikes, Delta anticipates a profit of around $1 billion before taxes, supported by strong demand for flights and significant revenue of $15.9 billion in the first quarter.

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