Delta executives believe pent-up demand for travel will help offset soaring fuel costs and allow the airline to hike fares by up to 10% from April

Delta Air Lines is counting on travelers to help offset a steep increase in jet fuel prices.

Delta executives indicated Tuesday that the company would raise fares in the second quarter, but seemed confident that travelers would absorb the additional costs because of their desire to travel.

Delta President Glen Hauenstein said at the conference that demand is increasing. Delta had its busiest day of the year last week, but it wasn't clear which day it was.

In the second quarter, Delta will be able to raise fares by up to 20%, equivalent to a hike of 7.5% to 10%.

In an interview with the Financial Times on Tuesday, Ed Bastian, Delta CEO, said higher fuel costs would lead to fare hikes across the board, adding that the airline would add a fuel surcharge to international flights.

According to the International Air Transport Association, jet fuel prices ended last week about 80% higher than a year ago. The price of oil went up after Russia invaded Ukraine.

According to a report from the event, Bastian echoed the optimism of Hauenstein at a conference in London on Tuesday.

The governments of the world decided in the last three weeks that the Covid era is over.

There was a brief blip when the war started, but demand is strong.

Despite a surge in oil prices this year over the $100-a-barrel mark, Bastian said his airline remained wary of fuel-price hedging. Delta lost $4 billion from the practice over eight years, according to Bastian.

I have lost a lot of money doing it. If you are a smaller carrier, you need to have more risk control. I don't think it is healthy in the long run. We can sustain a spike in fuel prices.