Delta caught by falling fuel
Delta Air Lines added to investor concerns Tuesday, about the industry’s ability to manage the recent fall in oil prices as it warned a key revenue metric would fall short of prior expectations. US carriers managed a 40% surge in fuel prices over the past year by raising fares and fees and cutting unprofitable flying, but have historically had more trouble adapting to sharp declines. They have often lost any savings from cheaper fuel by starting extra flights that have triggered price wars in some markets. Delta’s new guidance for unit revenues to rise at the bottom of its prior range in Q4 triggered a sector sell-off, even as carriers said the economy was continuing to drive strong demand, especially for business-class flights and on routes to Europe. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-12-05/sky/delta-caught-by-falling-fuel
https://portal.staralliance.com/cms/logo.png
Delta caught by falling fuel
Delta Air Lines added to investor concerns Tuesday, about the industry’s ability to manage the recent fall in oil prices as it warned a key revenue metric would fall short of prior expectations. US carriers managed a 40% surge in fuel prices over the past year by raising fares and fees and cutting unprofitable flying, but have historically had more trouble adapting to sharp declines. They have often lost any savings from cheaper fuel by starting extra flights that have triggered price wars in some markets. Delta’s new guidance for unit revenues to rise at the bottom of its prior range in Q4 triggered a sector sell-off, even as carriers said the economy was continuing to drive strong demand, especially for business-class flights and on routes to Europe. <br/>
