Despite posting quarterly results that surpassed Wall Street expectations, shares of Delta Air Lines (NYSE: DAL) fell more than 3% on Friday, highlighting investor concerns over persistently high fuel costs.

The company's second-quarter report showed adjusted earnings per share of $1.56, exceeding the range of analyst forecasts between $1.48 and $1.51. Adjusted revenue reached $17.7 billion, also topping estimates of $17.53 billion. However, net profit declined 25% year-over-year to $1.6 billion, dragged down by soaring fuel prices.

During the quarter, the airline's average fuel cost per gallon surged 75% to $3.93, marking the highest quarterly fuel expenditure in the company's history. Management indicated that fare increases offset only about 60% of the rise in fuel costs.

Chief Executive Ed Bastian stated that while oil prices have moderated, the pricing power gained from the surge in jet fuel prices is expected to persist. He emphasized that the company is managing cost pressures through higher fares, supported by robust travel demand. In a statement, Bastian noted that achieving $1.4 billion in pre-tax profit while absorbing record quarterly fuel costs demonstrates resilient demand, brand preference, and the strength of diversified revenue streams.

Looking ahead, the airline maintained its full-year guidance for adjusted earnings per share between $6.50 and $7.50, well above the analyst consensus of $5.95. For the third quarter, it expects earnings per share in the range of $2.00 to $2.50 and revenue growth of approximately 15% year-over-year. The company also announced a 15% increase in its quarterly dividend.