U.S. airlines reported robust spring demand, supporting higher fares and revenue growth, even as surging jet fuel prices increase operating costs.
Executives said carriers are countering rising expenses through fare hikes and capacity discipline, aiming to offset fuel-driven cost pressures.
Delta Air Lines expects first-quarter revenue growth in the high-single digits, above earlier forecasts, driven by strong consumer and corporate travel demand.
American Airlines now projects revenue growth above 10%, exceeding prior estimates, with demand momentum extending into April and May.
Despite improved revenue, American still anticipates a quarterly loss, though toward the lower end of its previous guidance range.
JetBlue and Frontier Airlines also reported resilient demand, helping mitigate higher costs, although weather disruptions impacted capacity and operations.
Jet fuel prices have surged more than 50% since late February, testing the industry’s pricing power and raising concerns over sustained cost pressures.
Airlines remain confident they can recover rising fuel costs through pricing adjustments, typically with a lag, while maintaining flexibility to cut capacity if needed.
