<span>STORY: U.S. airlines on Tuesday reported stronger-than-expected travel demand heading into spring, supporting higher fares and revenue growth.</span><span>This was despite the rise in jet fuel prices associated with the Iran war further increasing operating costs.</span><span>Executives said carriers have already taken action to mitigate the impact through fare increases and capacity discipline, and they believe resilient consumer and corporate demand will allow the industry to recover at least some of the additional expense if high fuel prices persist.</span><span>Shares of most U.S. airlines, including American, United and Delta, rose Tuesday morning following the new guidance. </span><span>Delta’s CEO said at a conference on Tuesday that consumer and corporate demand accelerated in March, leading the airline to raise its first-quarter revenue forecast while maintaining its earnings outlook.</span><span>But the company later said it canceled some flights due to delays caused by the partial government shutdown, which led to very long wait times at TSA security checkpoints.</span><span>A TSA administrator told Fox News that the stalemate over funding could lead to the closure of some smaller airports in the coming weeks.</span><span>American Airlines also informed investors on Tuesday that first-quarter revenue is now expected to rise more than 10%, above its previous forecast of 7% to 10%, as demand beat expectations.</span><span>The carrier said it still expects an adjusted loss per share but now sees it toward the lower end of its previous guidance.</span><span>Jet fuel prices have risen sharply since the US and Israel attacked Iran in late February; This has increased costs for an industry where fuel is second only to labor in terms of expenses and typically accounts for around 20% to 25% of total operating costs.</span><span>U.S. airlines are particularly at risk because most do not hedge their fuel costs, unlike some European and Asian airlines that use hedging to cushion price shocks.</span><span>Still, Scandinavian carrier SAS said on Tuesday it would cancel some flights in the short term, citing the “sharp and sudden increase in fuel prices.”</span><span>Delta, meanwhile, said the industry has already implemented two fare increases in the past two weeks and remains well positioned to offset higher costs with the flexibility to reduce capacity if fuel prices remain high.</span>
