Fuel is taking a chunk out of Delta Air Lines' profits. The carrier on Friday sharply lowered its outlook for the year, reflecting a $6 billion increase in fuel costs.

But even with fuel prices back on the rise, Delta Chief Executive Ed Bastian said his airline -- the most profitable in the U.S. -- is best-positioned to ride out the wild swings.

Airlines have cut money-losing routes and managed to charge higher fares and increase fees for checked bags. So far, consumers have largely been willing to pay and travel demand has been resilient. But some carriers are on track to lose money this year -- unlike Delta.

The Wall Street Journal spoke with Bastian about how the industry is navigating the turbulence, the never-ending appetite for new premium-travel amenities, and why the industry's high-end leader is sticking to its decision to skip Starlink Wi-Fi.

WSJ: Last time we spoke, there seemed to be a lot more optimism that fuel prices were coming down. How do you see things now?

BASTIAN: Well, obviously that didn't come to pass. It's real hard to predict what's going to happen. So what we're doing is focusing on things we can control.

If you consider fuel prices were up 60%, and the company earned a level of profitability comparable to where we were a year ago, it's pretty stunning, and certainly very different than anything that you would have seen within the industry going back over a number of cycles of prior fuel spikes.

WSJ: Are there any segments of consumers where you are seeing any resistance to higher fares? Are there people out there who are kind of throwing in the towel?

BASTIAN: I wouldn't say throwing in the towel, but those at the lower end of the economic curve are going to be the most sensitive, and that's why we reduced our supply offering in that market.

Holiday bookings look strong. We're expecting our fourth-quarter revenues to be up 20%.

WSJ: We saw Spirit Airlines go under earlier this year. If high fuel prices are sustained, do you expect there to be more industry fallout?

BASTIAN: I don't know what the next year holds, but if we see today's fuel prices on a sustained basis, you will see fallout of some variety.

The reality is, you only have three airlines this year that are profitable. And by and large, you've only had three airlines that have been profitable really since Covid-19.

There's a lot of money being lost on the other properties, and as a result, the shareholders of those airlines must be demanding accountability to the managers of those airlines to enhance their performance.

WSJ: Is there an upper limit to premium demand? Do you feel that it's getting crowded?

BASTIAN: I don't think it's getting crowded. But just because someone says they're going premium, that does not make them a premium airline.

We've been at it for 15 years. Premium is the overall experience, not just bringing in new seats or adding Starlink.

I think we're probably still in the early to mid innings in terms of the overall premium supply versus demand. Demand for it is very, very high.

WSJ: Funny you mentioned Starlink. Does that get to you at all when you see Elon Musk out there criticizing you?

BASTIAN: I don't read it.

All kidding aside, we know what we're doing in the space, and we've been the pioneer in Wi-Fi. We set that standard launching free, fast Wi-Fi that forced the industry to adopt it.

Starlink's a great product, and we know it well. We were involved in the early years of bringing it to aviation, and they had a different business model than we had. We're happy with where we sit.

WSJ: Your competitors are kind of making hay of all this. You don't see this being a competitive disadvantage?

BASTIAN: I think it's easy to advertise, but you actually have to show up and deliver.

This interview has been edited and condensed for clarity.