The news: Delta CEO Ed Bastian doesn’t believe his airline has hit the limits of premium demand, even as United and other airlines are making their own pitch for affluent consumers.

“I don’t think [the premium market is] getting crowded,” he told The Wall Street Journal, adding that Delta has carved out a unique niche. “We’ve been at it for 15 years. Premium is the overall experience, not just bringing in new seats or adding Starlink. I think we’re probably still in the early to mid innings in terms of the overall premium supply versus demand. Demand for it is very, very high.”

The context: Bastian’s confidence is backed by Delta’s Q3 results. Premium and loyalty revenues each grew 18% YoY, as affluent consumers continued to spend on travel despite broader economic pressures.

That resilience reflects the divergent economic realities facing higher- and lower-income households. During Delta’s earnings call, Bastian noted that the top 40% of US households, which account for the majority of Delta’s customers, are “nearly $40 trillion wealthier than they were just a few years ago” and are prioritizing experiences such as travel.

Federal Reserve data point in the same direction. Families in the top decile of the usual income distribution saw their median net worth rise 31% between 2022 and 2025, while Americans 75 and older saw their wealth increase 37%. That helps explain why premium travel demand can remain strong even as broader measures of consumer confidence point to greater caution.

But strong premium demand can only provide so much insulation from rising costs. Higher jet fuel prices prompted Delta to slash its 2026 profit outlook to between $5.10 and $5.60 per share, down from $6.50 to $7.50.

Implications for the travel and hospitality industries: Delta was able to pass along much of its roughly $6 billion increase in fuel costs this year without significantly changing traveler behavior, but most airlines don’t have the same concentration of affluent customers or pricing power. As a result, many carriers are pulling back capacity to protect margins.

Bastian expects sustained fuel prices to intensify that pressure. “If we see today’s fuel prices on a sustained basis, you will see fallout of some variety,” he told The Journal. He noted that only three airlines are profitable this year, a pattern that has largely persisted since the pandemic and has increased pressure on money-losing carriers to improve their performance.

That could create a difficult cycle for the broader travel industry. Higher fuel costs push airlines to reduce capacity, fewer seats can support higher fares, and rising fares can push more price-sensitive consumers to travel less.

The fallout from further capacity cuts could extend well beyond airlines and ripple through hotels, restaurants, attractions, and retailers that depend on traveler spending.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.