Delta: $70-a-barrel oil is coming and we're ready for it
Delta is getting ready for oil at US$70 a barrel. "We've got to make sure the business is positioned to perform with $70 oil," CFO Paul Jacobson said Tuesday. With prices "poised to touch $50 here pretty soon, the reality is we know oil prices are going to be higher," he said. It's not impossible to sustain high margins and high profits with higher oil prices, Jacobson said. After all, he said, "We were making record profits at $100 oil. As you can tell from our margin guide, we're optimistic." Monday, Delta raised its annual operating margin goal by 300 basis points to between 17% and 19% from between 14% and 16%. Additionally, Delta said Monday that it will cut second-half capacity growth by a percentage point, so that capacity will grow 2.5% rather than 3.5%. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-05-19/sky/delta-70-a-barrel-oil-is-coming-and-were-ready-for-it
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Delta: $70-a-barrel oil is coming and we're ready for it
Delta is getting ready for oil at US$70 a barrel. "We've got to make sure the business is positioned to perform with $70 oil," CFO Paul Jacobson said Tuesday. With prices "poised to touch $50 here pretty soon, the reality is we know oil prices are going to be higher," he said. It's not impossible to sustain high margins and high profits with higher oil prices, Jacobson said. After all, he said, "We were making record profits at $100 oil. As you can tell from our margin guide, we're optimistic." Monday, Delta raised its annual operating margin goal by 300 basis points to between 17% and 19% from between 14% and 16%. Additionally, Delta said Monday that it will cut second-half capacity growth by a percentage point, so that capacity will grow 2.5% rather than 3.5%. <br/>
