US EditionDelta Cuts Growth Plans as Fuel Costs Rise; Refinery Adds $300 Million
Delta expects a $300 million refinery benefit as it trims capacity growth and warns second-quarter earnings will trail analysts’ estimates.
- Delta Air Lines CEO Ed Bastian announced on Wednesday the carrier will "meaningfully reduce" capacity growth plans in the near term as soaring jet fuel costs roil the airline industry.
- Rising jet fuel prices increased first-quarter costs by $332 million, though Delta's Philadelphia-based refinery provides a $300 million benefit, offsetting fuel expenses. Jet fuel prices surged nearly 88% since late February through April 6.
- Reporting first-quarter results, Delta posted $14.2 billion in revenue and $423 million in net income, with premium-ticket revenue rising 14% over last year. Premium travel demand continues driving performance.
- On Tuesday, Delta joined United Airlines and JetBlue Airways in raising checked bag fees, a strategy aimed at improving performance across the industry amid higher operating costs.
- Bastian declined to update the full-year forecast due to fuel price uncertainty, though Delta projects second-quarter adjusted earnings between $1 and $1.50 per share. The refinery remains critical to offsetting fuel volatility.
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17 Articles
Delta scraps capacity growth plans as fuel price surge drives up costs
Delta Air Lines on Wednesday forecast second-quarter profit below expectations and said it would pull all planned capacity growth from the June quarter as soaring jet fuel prices driven by the Iran war squeeze margins.
Delta Cuts Growth Plans As Fuel Costs Surge
Delta Air Lines will scale back its growth plans as soaring fuel costs reshape the airline industry, CEO Ed Bastian said, reported by industry updates. Delta expects capacity to remain flat this year as jet fuel prices surge amid the Middle East conflict. Delta’s fuel expenses will rise by nearly $2 billion this quarter, pushing the airline to adjust operations. However, its refinery business is expected to provide a $300 million boost, offering…
Times of India
The Economic TimesUS Stocks: Delta scraps capacity growth plans as fuel price surge drives up costs, shares up
Delta Air Lines on Wednesday forecast second-quarter profit below expectations and said it would pull all planned capacity growth from the June quarter as soaring jet fuel prices driven by the Iran war squeeze margins.
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