Delta Airlines Reports as War Drives Gas Prices Higher

Major airlines are struggling with skyrocketing fuel costs as Delta Airlines prepares to share its financial results this week, marking the start of earnings season (the time when companies report their profits).

The war between the U.S., Israel, and Iran has caused oil prices to jump 77% in just three months. Since fuel is one of the biggest expenses for airlines, this price surge is eating into their profits. Here's what's happening:

• Airline stocks are down 12% overall since the war began in February • Delta's stock is actually up 2% because it owns its own oil refinery (a facility that turns crude oil into jet fuel) • Wall Street expects companies to report 13.2% higher profits despite the challenges

The travel industry faces a split reality. Wealthy travelers continue booking flights and cruises without concern, while middle and lower-income families are cutting back on travel due to higher costs. Delta's executives say they're focusing on premium customers who are "immune" to economic worries.

Other companies like Carnival cruises report record demand, while FedEx says the conflict hasn't hurt their shipping business. However, analysts worry about how long airlines can keep raising prices before customers stop flying.

The bottom line: Airlines must balance rising fuel costs with customer demand. Delta's results this week will show whether the travel boom can survive $100+ oil prices and ongoing global tensions.

This is an AI-generated summary. Read the original article at: https://www.marketwatch.com/story/delta-kicks-off-an-earnings-season-focused-on-surging-gas-prices-and-the-iran-war-4a4226fc?mod=mw_rss_topstories