Delta Logs Main Cabin Revenue Growth Despite $2B Jet Fuel Headwind
Delta posted positive unit revenue growth in its main economy cabin for the first time in more than a year as 85% of companies expect flat or higher Q2 corporate travel spend. The airline forecast lower Q2 profit and will cut capacity to offset $2 billion in extra jet fuel costs.
1. Main Cabin Unit Revenue Growth
Delta achieved positive unit revenue growth in its main economy cabin for the first time in more than a year, driven by strong premium-seat demand and corporate travel projections, with 85% of companies expecting flat or higher spending in the June quarter.
2. Q2 Guidance Impacted by Fuel Costs
The airline forecast lower-than-expected profit for the second quarter and plans to reduce capacity to mitigate approximately $2 billion in additional jet fuel expenses, as fuel costs have more than doubled since the onset of Middle East conflict.