Delta to cut more US capacity due to fuel costs

[FA Mikey]

Delta to cut more domestic capacity than previously expected due to fuel prices

Delta Air Lines Inc. plans to cut domestic capacity by an extra 3 percent in the second half of this year due to record fuel prices.

The Atlanta-based company disclosed its plans in a regulatory filing, and president and chief financial officer Ed Bastian discussed the capacity cuts later Wednesday during the Merrill Lynch Global Transportation Conference in New York that was broadcast on the Internet.


The airline will cut domestic capacity by 13 percent during the second half of the year, an increase from the 10 percent reduction announced in March.

Bastian suggested at the conference that Delta's domestic capacity cuts won't end there.


story here

 

[jimntx]

I don't think any of the "announced" cuts from any major airline are the final word at this point. AMR advised in April that 4th qtr cuts would be 4.6%. Less than a month later, it was increased to 11-12%. And, that was when oil was still under $130/bbl. Today on the NY Mercantile, oil rose to $137.65/bbl for August delivery even though the Saudis announced an increase in production.

Oh no, dear children. We have not yet heard the last of the domestic capacity cuts.

 

[FA Mikey]

I agree, Like you I am waiting to hear more of what the extent of the cuts will be at AMR. DAL has done great with the info on the cuts and getting people to leave, avoiding hopefully any furloughs

 

[Ch. 12]

I don't think any of the "announced" cuts from any major airline are the final word at this point. AMR advised in April that 4th qtr cuts would be 4.6%. Less than a month later, it was increased to 11-12%. And, that was when oil was still under $130/bbl. Today on the NY Mercantile, oil rose to $137.65/bbl for August delivery even though the Saudis announced an increase in production.

Oh no, dear children. We have not yet heard the last of the domestic capacity cuts.

Saudi 'announcement' was nothing more than cosmetic. Their 500,000 extra barrels of oil per day amounts to less than 1% increase. Even if this new oil magically makes it through the refineries w/o being slowed, it will mean only a penny change that the pump.

I agree...more cuts to come...from everyone (except maybe southwest?)