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Fuel prices took flight after the Iran war began, adding $2 billion to Delta\u2019s quarterly costs. But the airline has a plan for a soft landing<\/a>. How is that possible? Delta will cut about 3.5% of flights in the second quarter, raise fares and increase bag fees \u2014 moves CEO Ed Bastian says could recover up to half of the higher fuel costs. The airline still expects to earn a profit of about $1 billion before taxes.<\/p>\n The strategy is working. Delta reported $15.9 billion in revenue for the first three months of the year, with particularly strong sales of premium seats and credit card spending. The airline has raised fares twice since the war started in late February and increased bag fees by $10 for the first and second checked bags.<\/p>\n It also doesn\u2019t hurt that there is still a large demand for flights despite higher ticket prices. \u201cThe demand set has been strong across all geographies, across all products, categories,\u201d Bastian told reporters and analysts on a call. \u201cIt\u2019s a healthy travel time.\u201d<\/p>\n<\/p><\/div>\n Fuel prices took flight after the Iran war began, adding $2 billion to Delta\u2019s quarterly costs. But the airline has a plan for a soft landing<\/a>. How is that possible? Delta will cut about 3.5% of flights in the second quarter, raise fares and increase bag fees \u2014 moves CEO Ed Bastian says could recover up to half of the higher fuel costs. The airline still expects to earn a profit of about $1 billion before taxes.<\/p>\n The strategy is working. Delta reported $15.9 billion in revenue for the first three months of the year, with particularly strong sales of premium seats and credit card spending. The airline has raised fares twice since the war started in late February and increased bag fees by $10 for the first and second checked bags.<\/p>\n It also doesn\u2019t hurt that there is still a large demand for flights despite higher ticket prices. \u201cThe demand set has been strong across all geographies, across all products, categories,\u201d Bastian told reporters and analysts on a call. \u201cIt\u2019s a healthy travel time.\u201d<\/p>\n<\/p><\/div>\n