Delta will raise pay by 4% for nearly all its employees globally effective May 1, according to a company memo seen by Reuters. A company spokeswoman, who confirmed the increase, said it would be received by about 75,000 employees, but that it would not apply to pilots, who are covered under a union contract, and some others including senior-level executives. Delta CE Ed Bastian said in the memo to employees that the Atlanta-based airline is "seeing healthy demand for spring and summer travel as customers continue to return to Delta, with corporate offices re-opening, business travelers rebuilding face-to-face relationships and international restrictions lifting." The "base pay increase, for eligible scale and merit employees globally," Bastian wrote, "is the direct result of the dedication, hard work and excellence that you demonstrate every day." He added that Delta continues to be "optimistic in our ability to generate a profit this year." Bastian noted that it was March 2020 when "the United States declared a national emergency over the COVID-19 outbreak, which began the most difficult and challenging time in the history of our company. We’ve come a long way since the darkest days of 2020." <br/>
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Higher oil prices are set to lead to a 10% increase in air fares, according to the boss of one of the world's biggest airlines. Delta head Ed Bastian said the final impact "really depends where fuel prices settle". Oil prices have reached 14-year highs after Russia's invasion of Ukraine. Emirates, Japan Airlines and AirAsia are among the big carriers to introduce surcharges on their tickets recently to cover the higher cost of jet fuel. Before the pandemic, in 2019, 200m customers flew on Delta, making it the world's second biggest airline by passenger numbers. Bastian said that on a domestic US flight the rise in fuel prices "is probably about $25 on a ticket, that could be anywhere between 5% to 10% at these high levels of oil... and international [flights] will be a bit higher than that". Delta is planning to introduce fuel surcharges on the international flights which account for about 35% of its business, and increase US ticket prices.<br/>
Delta will help Airbus in its effort to develop a hydrogen-powered passenger airplane, the companies said Thursday. Delta is the first US-based airline the European planemaker is partnering with for hydrogen aircraft. Atlanta-based Delta said the partnership does not entail any financial investment on its part. Airbus has plans to produce a small "ZEROe" passenger aircraft powered by hydrogen to enter service in 2035, and wants to get feedback from customers while the new aircraft is being developed, Amanda Simpson, vice president for research and technology at Airbus, said in an interview. "We're in...the pre-product development phase, where we're trying to understand clearly what is the realm of the possible - what is going to work," Simpson said. Last month, Airbus said it would build a demonstrator to test propulsion technology for hydrogen airplanes in co-operation with French-US engine maker CFM International. Amelia DeLuca, vice president of sustainability at Delta, said the collaboration would focus on understanding the requirements for the new plane's deployment including the production of green hydrogen in the United States and its accessibility at the country's airports. The carrier said the partnership would also advocate for a decarbonized future in aviation, including hydrogen pathways, with key stakeholders.<br/>
Grupo Aeromexico has emerged from its restructuring process and will invest $5b over the next five years to expand its fleet as it prepares to start growing again. The carrier won court approval to emerge from Chapter 11 in late January but still had to fulfill certain conditions to finalize the process, Aeromexico said Thursday. The company is looking to “significantly” increase its network and fleet, which will grow to 147 jets from the current 124 by the end of the year. The $5b investment in the next five years will focus mostly on additional fleet growth, but also on meeting its environmental, social and governance, or ESG, goals. The reorganized company is valued at $2.56b. Mexico’s second-largest airline filed for bankruptcy in the US in 2020 as the pandemic caused a severe downturn in travel. Aeromexico saw the number of passengers it carried plummet more than 90% as governments grounded flights and travelers stayed home. The carrier, unlike its counterparts in the US and Europe, received little to no support from the government. “We look forward to starting a new chapter in our company’s history, backed by a sound financial base, solid capital structure, and investors who have full confidence in our future,” said CEO Andres Conesa.<br/>