Delta Keeps Fares Up 11%-12% Despite 36% Jet Fuel Drop
Updated
Updated · KSL.com · Jul 10
Delta Keeps Fares Up 11%-12% Despite 36% Jet Fuel Drop
3 articles · Updated · KSL.com · Jul 10
Summary
Delta said second-quarter fares are still running 11%-12% higher and will not fall even as jet fuel spot prices have dropped 36% from their peak.
Strong demand is offsetting cheaper fuel, with premium passenger revenue up 17% and main cabin revenue up 8% as affluent travelers keep prioritizing trips.
Fuel still hurt results after the Iran-linked oil spike lifted adjusted fuel expense by $1.9 billion, cutting adjusted income by $358 million, though earnings still beat Wall Street forecasts.
Delta expects current-quarter fuel costs to fall 20% from the second quarter and said strong fares should keep it on track for the full-year earnings target set before the war.