Delta CEO warns higher airfare costs could last even as oil prices fall

Delta CEO Ed Bastian warned Friday that travelers could see higher airfare costs continue even as oil prices fall from multi-year highs – which he expects will help boost the carrier’s profits to hit its annual goal.

“I think it’s sustainable,” Bastian told CNBC when he was asked about high ticket prices, nodding to robust travel demand, more seating options and an industry that has been burnt in the past – and is hesitant to expand capacity as soon as oil starts to drop.

Domestic and international airfare have dipped in recent weeks from highs in April and May – but consumers are still coughing up much more for a ticket than they did last year as the Iran war has pushed jet fuel to a premium, multiplying operating costs for major airlines.

Last week, the average domestic airfare hit $366, 38% higher than the same time last year, while the average international ticket cost $919 – finally falling below the $1,000 level but still 24% higher than 2025 prices, according to the latest Kayak data.

Expectations that airfare will stay elevated helped the Atlanta, Ga.-based airline reaffirm its full-year earnings per share forecast of $6.50 to $7.50.

In the third quarter, the airline expects earnings per share of $2 to $2.50, compared to analysts’ expectations of $2.02.

Delta also shared its second-quarter results, with adjusted earnings per share of $1.56, beating expectations of $1.48, and revenue of $17.67 billion, topping a forecast of $17.53 billion.

Bastian said Delta – the most profitable US airline – has benefited from catering to higher-income customers in a K-shaped economy, which has seen wealthier Americans continue to spend big while lower-income individuals cut back.

The carrier’s premium seat sales raked in $6.92 billion in revenue in the second-quarter, while the main cabin brought in $6.