Delta trims summer flying

Delta Air Lines is cutting some summer flights after a jump in jet-fuel costs upended the airline’s growth plans for the June quarter. (usatoday.com) Delta told investors on April 8 that it would hold June-quarter capacity growth flat, not expand as previously planned, while it absorbs more than $2 billion in higher fuel expense at the forward price curve. The airline said it still expects about $1 billion in pre-tax profit for the quarter. (ir.delta.com) The route changes now showing up in Delta’s summer schedule include New York John F. Kennedy to Memphis and St. Louis, Detroit to Reykjavik, Boston to Nassau, and Seattle to Cancun, according to USA Today’s report on the carrier’s filings and schedule updates. Delta said the cuts reflect “high and volatile fuel prices.” (usatoday.com) Jet fuel is one of an airline’s biggest operating costs, and carriers cannot quickly swap to a cheaper substitute when oil markets move. Delta said the recent spike was large enough to erase planned summer growth even as demand stayed strong. (cnbc.com) The fuel shock is not limited to Delta. CNBC reported on April 7 that U.S. jet-fuel prices had climbed sharply after the Feb. 28 U.S. and Israeli attack on Iran, while airlines and analysts were also watching whether enough supply would be available in some markets. (cnbc.com) Other airlines have already started trimming service. CBS News reported on April 17 that Delta, Air Canada and other carriers were cutting selected routes as higher kerosene costs and geopolitical instability reshaped summer schedules. (cbsnews.com) Delta is also trying to recover part of the added fuel bill from travelers. For tickets bought on or after April 8, the airline raised checked-bag fees by $10, bringing the first checked bag on many domestic flights to $45 and the second to $55. (usatoday.com) The company told investors it expects lower capacity, higher fares and ancillary charges to recapture 40% to 50% of the fuel increase in the June quarter. Delta also said its refinery ownership should provide a roughly $300 million benefit during the period. (travelweekly.com) For travelers, the practical effect is less about one canceled route than a summer of moving pieces: fewer nonstop options on some city pairs, more schedule revisions, and a higher chance that fares and fees keep shifting with fuel markets. Delta has not signaled a broad retreat from summer flying, but it has made clear that its network will stay flexible while fuel prices remain uncertain. (usatoday.com)