Oil was near $110 a barrel. Jet fuel costs were up 8% from a year ago. Delta had one of its best quarters. These two things should not go together. But they do.

The airline reported Q1 revenue of $14.2 billion on Wednesday. It beat Wall Street hopes and rose over 9% from the same quarter last year. Adjusted earnings per share were $0.64, well above the $0.57 that experts thought.

High-End Travelers Carried the Quarter

The boost came from Delta's high-end work. First class, business class, and top loyalty folks kept booking through the war, the oil jump, and a rough winter.

Fuel cost Delta $2.6 billion for the quarter - up 8% from a year ago. But demand was strong enough to handle it. The airline posted work income of $652 million and a work margin of 4.6%.

The Ceasefire Helped the Stock Even More

Delta's earnings were strong by themselves. But the ceasefire boosted the stock more. Lower oil means lower fuel costs ahead. That's the biggest thing for any airline's profit.

The stock jumped 12% in early trading on Wednesday.

Worth Noting

Delta isn't the only airline with strong demand. American and JetBlue both raised their Q1 view earlier this week. The trend is clear: people still fly, even when it costs more.

Fuel is the second-biggest bill airlines pay. With oil down, that bill just got way cheaper.