sky

Delta Air Lines Monday cut its operating margin forecast for the current quarter, citing higher costs, and said it expected passenger unit revenue to be at the lower end of its forecast. The airline said its margins will likely contract this year as the pace of revenue improvement lags cost increases. "Market fuel prices are tracking up about 55% for the quarter, which is expected to be the greatest year-on-year increase in 2017," the company said. Delta Air now expects operating margins to increase about 10-11%, less than 11-13% rise it had previously forecast. The airline now expects passenger unit revenue, to be about flat in Q1 ending March. It had earlier expected passenger unit revenue to be between flat and up 2%. <br/>

Alitalia is making some amendments to its “re-launch business plan,” which it expects to finalise by the end of this week. During a meeting March 6, the Alitalia board reviewed a plan prepared by independent advisor Roland Berger. “The board agreed that a final adjusted business plan will be approved by the end of this week,” Alitalia said Monday. Alitalia described its financial situation as “complex,” but January saw a 4.4-point increase in load factors to 78% and ticket sales were 7% up versus Jan 2016. Preliminary data for February is also “promising.” Alitalia CE Cramer Ball said the airline was on track to achieve at least E160m (US$170m) in cost savings for 2017, excluding including labour costs. “Further savings, again not related to labour costs, have been identified and will be implemented in a planned timeframe,” Alitalia said. <br/>