HMM: Flight Costs Are Up, but Travelers Aren’t Deterred, U.S. Airlines Say.
At an investor conference on Tuesday, executives from most major U.S. airlines said that robust travel demand was offsetting the effects of winter storms and a huge rise in the cost of jet fuel since the start of the war in Iran. The price of jet fuel on Monday was about 50 percent higher than it was before the war began on Feb. 28.
Executives at American Airlines, Delta Air Lines and United Airlines said they had incurred $400 million each in higher fuel costs, but that they were not changing their profit forecasts for the first three months of the year because ticket sales remained strong. The executives said their airlines had broken daily or weekly records for ticket sales this year.
“It’s across all segments, covering corporate, covering international, covering premium leisure, covering main cabin, covering our domestic system,” Delta’s chief executive, Ed Bastian, said at the J.P. Morgan 2026 Industrials Conference in Washington. “We’re seeing strength in every market that we look at.”
It’s the same story with beef prices. They’re at or near record highs, but consumer are still buying — there’s little-to-none “protein substitution” going on, even with 80/20 ground beef nearing $7 a pound at Walmart.
Whatever the press tells you about how pinched consumers are, we’re still spending on the things we like.