economy
Delta Air Lines CEO says airline will 'meaningfully' cut growth plans, sees $300 million boost from its refinery
Delta is scaling back its flight plans as fuel costs grow to reduce its expenses.
TL;DR
- Delta plans to "meaningfully reduce" its capacity growth due to high fuel costs.
- The airline's fuel bill is expected to be $2 billion higher this quarter.
- Delta forecast adjusted second-quarter earnings between $1 and $1.50 per share.
- Capacity is expected to be flat year-over-year in the second quarter.
- Delta's refinery is expected to provide a $300 million benefit in the second quarter.
- Jet fuel prices have increased significantly since late February.
- Premium travel demand remains strong, with premium ticket revenue up 14% in the first quarter.
- Delta reported a net loss of $289 million in the first quarter, but adjusted net income was $423 million.