Airfares to Stay Higher 8/3/26
Speakers
Joe Zidle
— Founder & Chief Investment Strategist, Zidle Macro Strategies Group; former Chief Investment Strategist at Blackstone
Bob Jordan
— CNBC host
Bob Isom
— CEO, American Airlines
Scott Kirby
— CEO, United Airlines
Ed Bastian
— CEO of Delta Air Lines
Summary
Airline CEOs from Southwest, American, United, and Delta indicate airfares will remain elevated due to strong demand and the ability to pass through higher fuel costs, while analyst Joe Zidell highlights Delta's pricing power with high-income consumers.
- Southwest CEO Bob Jordan reports no resistance to higher fares and incredibly strong demand.
- American Airlines CEO Bob Isom cites record third-quarter revenue and customers buying up.
- United CEO Scott Kirby notes airfares are still down 13% in real terms from pre-COVID.
- Delta CEO Ed Bastian asserts the airline will recover all higher jet fuel costs at current fuel levels.
- Joe Zidell of Zidell Macro Strategies says higher-income consumers pay any price to fly, giving Delta pricing power.
- The overall message is that airline pricing power remains robust, supporting continued elevated airfares.
Ideas
Joe Zidle
Founder & Chief Investment Strategist, Zidle Macro Strategies Group; former Chief Investment Strategist at Blackstone
1:33
Delta has strong pricing power.
Higher-income consumers pay any price to fly, giving Delta the pricing power to pass through 100% of fuel costs, indicating strong revenue and margin potential.
