Delta says higher airfares expected to last despite drop in oil prices
Summary
Delta Airlines said it expects high airfares to continue even though oil prices have recently dropped. The company reported strong demand for travel and made a $1.4 billion profit in the latest quarter, passing most of its higher fuel costs to customers.Key Facts
- Delta had its highest ever quarterly fuel expenses but still made $1.4 billion profit.
- The airline passed along about 60% of extra fuel costs to customers and plans to pass on all elevated costs eventually.
- Strong travel demand helped Delta keep airfares high despite lower oil prices recently.
- Delta’s premium ticket sales grew 17% year-over-year; main cabin sales grew 8%.
- Delta serves mostly wealthier customers with more money to spend on travel.
- The airline introduced a “basic business” class without some business perks to attract more flyers.
- Although gas prices dropped last month, prices are rising again and remain higher than last year.
- Other airlines like United and American will report earnings later this month.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
