Bloomberg Intelligence Delta Airlines More Upbeat for First Quarter Amid March Bookings
Mar 17, 2026
Jeffrey Langbaum, a REIT analyst focused on office market trends; Kristina Peterson, a food industry reporter covering CPG strategy; and Sid Philip, an aviation correspondent on airlines and fuel costs. They discuss Delta’s upbeat bookings and pricing power. They cover TSA staffing and summer travel risks. They examine Kraft Heinz’s healthier product push and R&D bets. They explore office demand driven by AI hiring and premium space scarcity.
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Bookings Look Good But Fuel Uncertainty Drives Margins
- Booking visibility looks healthy but profitability hinges on where jet fuel prices settle relative to fares.
- If fares rise slower than fuel, airlines suffer; if fuel falls or fares outpace fuel, profitability improves.
Avoid Repeat Hedging Mistakes Without A Natural Hedge
- Airlines largely stopped fuel hedging after COVID losses from wrong-way hedges, so most U.S. carriers currently avoid hedging.
- Delta's refinery ownership provides a partial natural hedge, which it cites as a cushion against fuel spikes.
TSA Staffing Crunch Threatens Summer Travel
- Long TSA lines stem from staffing and pay issues; airlines and industry groups urge a deal to get TSA staff paid to reduce queues before peak summer travel.
- Executives warn lines will worsen into the summer without early resolution.