Delta fare hikes may be on the horizon
Delta Air Lines is aiming to be the first major airline to boost its fares this year as it faces rising fuel costs and revenue headwinds. The airline said it will cut expansion plans, including going back on its plans to add new flights in the second half this year as well as pushing back delivery of new planes by 1 to 2 years. Delta’s passenger capacity will grow at about 2.5% in Q4 of this year, down from about 4% growth in the first 3 quarters of 2016. International capacity will remain relatively flat. The moves are part of a larger plan to stop airfares from falling and help reverse that trend altogether. Slowing capacity will help boost its airfares over the coming months, said Delta CFO Paul Jacobson Tuesday. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-18/sky/delta-fare-hikes-may-be-on-the-horizon
https://portal.staralliance.com/cms/logo.png
Delta fare hikes may be on the horizon
Delta Air Lines is aiming to be the first major airline to boost its fares this year as it faces rising fuel costs and revenue headwinds. The airline said it will cut expansion plans, including going back on its plans to add new flights in the second half this year as well as pushing back delivery of new planes by 1 to 2 years. Delta’s passenger capacity will grow at about 2.5% in Q4 of this year, down from about 4% growth in the first 3 quarters of 2016. International capacity will remain relatively flat. The moves are part of a larger plan to stop airfares from falling and help reverse that trend altogether. Slowing capacity will help boost its airfares over the coming months, said Delta CFO Paul Jacobson Tuesday. <br/>
