The news: Higher airfares aren’t deterring travelers, giving United and Delta confidence they can raise prices to offset rising fuel and other costs, executives said.

• United expects to fully recover $6 billion in additional energy expenses by Q4 2026, having already recouped roughly half of the $2.3 billion in additional fuel costs incurred in Q2.
• Delta is passing along roughly 60% of its additional fuel costs to consumers, a share it expects will approach 100% this quarter, CEO Ed Bastian told CNBC.

Zoom in: That United and Delta are confident about their pricing power is unsurprising, given that both cater more to higher-income consumers who tend to be less cost-sensitive and more inclined to spend freely.

• Bastian told CNBC that he believes high prices are “sustainable” due to strong demand, more diverse seating options, and a more disciplined approach to capacity expansion.
• Similarly, United CEO Scott Kirby said the airline had “minimal to no negative impact on demand” from higher prices in Q2, a trend that has continued into the current quarter.

That strength was reflected in their Q2 results, with both carriers noting a sizable increase in premium sales.

• United’s premium revenues rose 16.4% YoY in Q2, outpacing 11% growth for its Basic Economy offering.
• Delta’s premium cabin generated higher revenues and grew faster than its main cabin, with ticket sales rising 17% to economy’s 8%.

Implications for the travel industry: Consumers hoping for lower travel costs have a long wait ahead. The decline of budget airlines has given carriers like United and Delta more room to raise prices, enabling them to easily recoup higher expenses related to fuel, labor, airport fees, and maintenance. That reflects the K-shaped dynamic in the travel sector, as lower- and middle-income consumers rethink vacation plans while wealthier households forge ahead.

• 38% of Americans with household incomes of less than $100,000 plan to travel this summer, a decline from 46% last year, according to Deloitte’s Summer Travel Survey.
• Roughly two-thirds of US consumers are foregoing travel this summer, with the top reasons being the inability to afford it (35% of non-travelers) and feeling that travel is too expensive right now (32%).
• By comparison, households with incomes between $100,000 and $199,000 plan to take an average of three trips this summer and spend 24% more than last year, while those with over $200,000 in income are increasing their budgets by 14%.

Still, as Delta and United recognize, the desire to travel extends across income lines. Both companies are making a bigger play for aspirational consumers: Delta with its “basic business” offering and United with a new Economy Plus fare featuring a blocked middle seat option, giving travelers a more comfortable experience at a lower price.

Go further: Check out our Travel 2026 Infopack.