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12-Oct-2017 4:14 PM

Delta Air Lines expects continued pressure on margins in 4Q2017

Delta Air Lines stated (11-Oct-2017) it expects continued pressure on margins in 4Q2017 as its unit revenue momentum catches up to the rise in fuel prices that began in Jul-2017. Adjusted fuel increased USD230 million as market fuel prices increased throughout 3Q2017. Delta's adjusted fuel price per gallon for 3Q2017 was USD1.68, which includes USD0.03 of benefit from the refinery. Non-fuel unit costs is expected to increase 4% year-on-year, CFO Paul Jacobson said, noting: "Harmonisation of profit sharing plans, accelerated depreciation of narrowbody aircraft and pressure from weather-related cancellations have added over a point of pressure to costs from our previous guidance". [more - original PR] [more - original PR - II]  [more - original PR - III]

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