Delta CEO video on summer travel

Delta Air Lines CEO Ed Bastian used a May 18 television interview to lay out how the carrier is handling higher jet fuel costs, heavy summer demand and the fallout from Spirit Airlines’ shutdown. In the segment, published by TODAY and on YouTube, Bastian said Delta is taking on part of the fuel increase while passing part through to fares. He also linked Spirit’s collapse to broader stress in the low-cost end of the U.S. airline market. The interview landed as U.S. carriers adjust summer schedules and competitors move to fill routes Spirit left behind. ### What did Ed Bastian say about fares and fuel? Ed Bastian told TODAY that Delta is “absorbing probably 50% of the cost on our own and probably 50% will go into pricing,” referring to higher fuel costs facing airlines. TODAY said the interview focused on the effect of rising fuel costs on ticket prices for travelers. Bloomberg reported on May 14 that Bastian had also tied rising jet fuel costs to a widening split between airlines that cater to premium travelers and those that compete mainly on price. In that interview, Bloomberg said Bastian described Spirit Airlines’ collapse as evidence of pressure on the budget model. (today.com) ### Why was Spirit part of the conversation? Spirit Airlines’ shutdown has become a reference point for the industry because it removed a large ultra-low-cost carrier from the domestic market. CNBC reported on May 4 that Spirit had abruptly ceased operations overnight and that rivals were moving quickly to capture routes, gates and customers. (bloomberg.com) Barclays airline analyst Brandon Oglenski said in a note cited by CNBC that Spirit’s already reduced summer schedule represented about 1.5% of U.S. domestic capacity, but that the loss could still have a broader effect on pricing. He said the removal of “excess point-to-point capacity” could lift unit revenue across the industry in the near term. (cnbc.com) ### What has Delta done since Spirit suspended operations? Delta said on May 2 that it was offering reduced, nonrefundable fares in affected markets for five days after Spirit suspended operations. The airline said those fares were available across domestic markets where Spirit had operated, including routes Delta served nonstop and through one-stop connections, as well as U.S.-Latin America routes where Spirit flew. (cnbc.com) Delta also said Spirit pilots and flight attendants could access standby travel on Delta under existing agreements for 10 days, and that qualified Spirit employees could apply for open roles through a dedicated careers microsite. ### What does this mean for summer travelers right now? (news.delta.com) May 19 coverage from the Detroit Free Press and USA Today said travelers should expect rising fares, worsening delays and fewer low-cost options after Spirit’s shutdown. Those reports said the summer market is being shaped by higher airline costs and reduced budget capacity. WPTV reported on May 19 that travelers looking for deals after Spirit’s collapse were being pushed to shop earlier and compare alternatives more carefully. That reporting matched Bastian’s comments that at least some higher airline costs are now feeding into ticket prices. ### Where can readers see the interview themselves? (freep.com) The May 18 segment is available on TODAY’s website under the headline “Delta Airlines CEO on Rising Costs, Summer Travel, Spirit Collapse.” The same interview was also posted to YouTube under that title. Bloomberg also aired a separate May 14 interview with Bastian covering consumer demand, fuel costs, Spirit’s collapse and possible industry consolidation. (wptv.com) That appearance provides the closest additional public record of the same themes Bastian raised again in the May 18 segment. (bloomberg.com) (today.com)