Delta Airlines Hikes Checked Bag Fee Before Earnings Call As Fuel Costs Surge Amid Iran War

Delta Air Lines Inc. (NYSE:DAL) and Southwest Airlines Co. (NYSE:LUV) announced a hike in check-in luggage fees as the global aviation sector tackles headwinds posed by the conflict in the Middle East.

Delta Hikes Check-In Luggage Fees

Delta and Southwest both announced a $10 hike each on the first and second checked luggage bags on Tuesday, with the prices for checking in luggage at $45 and $55 for the first and second bags, respectively.

Delta also shared that the price for a third checked bag would rise by $50 to $200 and the hikes would be applied to domestic and select short-haul international routes. The hikes would be applied to bookings made on or after Wednesday, the airline confirmed, while Southwest would be applying the hikes from Thursday.

Jet Fuel Costs Surge

Costs of jet fuel have risen considerably ever since the beginning of the war in Iran, which led to the closure of the Strait of Hormuz, a key shipping route responsible for transporting a fifth of the world’s crude oil supply. According to data from Airlines for America, a gallon of jet fuel cost $4.81 on Tuesday.

However, prices for crude oil slipped following the announcement that Washington and Tehran had reached a 2-week ceasefire agreement and that the Strait of Hormuz would be reopened. It’s also worth noting that Delta Airlines owns and operates an oil refinery in Pennsylvania through its subsidiary Monroe Energy, which can shield it from the volatility of the oil markets to an extent.

Delta Airlines Earnings, Amazon Leo Deal

The company is also set to host its Q1 2026 earnings call on Wednesday, with market consensus pointing towards an EPS of $0.62 per share and a revenue consensus of over $14 billion. Delta had previously guided a 5-7% increase in revenue, citing strong demand.

It had earlier picked Amazon.com Inc.‘s (NASDAQ:AMZN) Leo satellite internet service over Elon Musk-led SpaceX‘s Starlink, sharing that it would offer Leo on over 500 aircraft in its fleet starting in 2028.

According to Benzinga Edge Rankings, Delta scores well on the Momentum, Growth, Value and Quality metrics, while also offering a favorable price trend in the Long term.

Price Action: DAL surged 5.58% to $69.28 during overnight trading.

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