Delta to raise ticket prices in response to higher fuel costs
The head of Delta has said that higher ticket prices await flyers as a result of the rising cost of oil, in another sign of inflationary pressures seeping into the economy. Ed Bastian, Delta CE, said that the third-largest US carrier would add a fuel surcharge to international flights “as the market conditions permit”. Higher fuel costs “will no question” raise ticket prices, both domestically and internationally, he said. His comments come after jet fuel prices rose sharply after Russia invaded Ukraine last month. While it has partially receded, jet fuel remains about two-thirds higher than a year ago. Glen Hauenstein, Delta president, said at an industry conference earlier on Tuesday that the airline needs “to recapture somewhere between $15 and $20 each way on an average ticket value of about $200”, and that the company is confident passengers will be willing to pay it. Bastian said that customers continued to book flights despite uncertainty over fuel costs and the war in Ukraine. While Delta’s bookings for transatlantic flights fell between 5 and 10% in the week following the invasion, Delta had its biggest ever day of sales last week. The positive outlook was shared by Shai Weiss, CE of Delta’s joint-venture partner Virgin Atlantic, who said that sales have snapped back after taking a hit at the start of the war. Bastian saw no signs US consumers have been put off travelling. “As the conflict continues, there could be an element of caution. But we’re not seeing any significant impact,” he said. Delta said that in Q1 it had 83% of seat capacity compared to 2019, before the pandemic. The Atlanta-based airline forecast a pre-tax quarterly loss but a profit for the month of March.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-03-16/sky/delta-to-raise-ticket-prices-in-response-to-higher-fuel-costs
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Delta to raise ticket prices in response to higher fuel costs
The head of Delta has said that higher ticket prices await flyers as a result of the rising cost of oil, in another sign of inflationary pressures seeping into the economy. Ed Bastian, Delta CE, said that the third-largest US carrier would add a fuel surcharge to international flights “as the market conditions permit”. Higher fuel costs “will no question” raise ticket prices, both domestically and internationally, he said. His comments come after jet fuel prices rose sharply after Russia invaded Ukraine last month. While it has partially receded, jet fuel remains about two-thirds higher than a year ago. Glen Hauenstein, Delta president, said at an industry conference earlier on Tuesday that the airline needs “to recapture somewhere between $15 and $20 each way on an average ticket value of about $200”, and that the company is confident passengers will be willing to pay it. Bastian said that customers continued to book flights despite uncertainty over fuel costs and the war in Ukraine. While Delta’s bookings for transatlantic flights fell between 5 and 10% in the week following the invasion, Delta had its biggest ever day of sales last week. The positive outlook was shared by Shai Weiss, CE of Delta’s joint-venture partner Virgin Atlantic, who said that sales have snapped back after taking a hit at the start of the war. Bastian saw no signs US consumers have been put off travelling. “As the conflict continues, there could be an element of caution. But we’re not seeing any significant impact,” he said. Delta said that in Q1 it had 83% of seat capacity compared to 2019, before the pandemic. The Atlanta-based airline forecast a pre-tax quarterly loss but a profit for the month of March.<br/>
