Airlines are betting that they can hold onto their pricing power even as the price of fuel decreases due to strong demand and fewer competitors in the industry.
Delta is not hiking fees on its credit cards even as its competitors continue to increase annual fees and roll out premium travel credit cards in an increasingly saturated market.
After a frenzy of speculation about airline M&A, talks have dried up. The industry is too consolidated for the big carriers to merge, and the smaller ones don't have viable partners.
In just the span of two months fuel costs are up more than double since the start of the Iran war, according to new data from the Department of Transportation.
Amid wide speculation that United may want to do a mega-merger with American, Delta says it sees more consolidation happening among struggling carriers.
Delta is investing more than $1 billion in refreshing its business class cabins as airlines race to upgrade their premium seats to cater to high demand.
Travel companies betting on the premium boom may tend to view post-Covid wealth creation as an immutable fact. But a protracted economic shock would test the durability of the trend and their strategies.