14-May-2017 7:01 PM
Delta expects fuel costs to rise over next few years; success requires ability to pass cost on
Delta Air Lines stated (11-May-2017) fuel costs are expected to increase over the next few years but they will "remain well below historic highs". Fuel prices are projected to range between USD1.70 to USD2.00 per gallon based on the forward curve from 2017 to 2020. Delta said long-term success requires the ability to pass fuel costs on through ticket prices. The carrier aims to drive cost advantage and operational uncertainty through its refinery, with refinery financials mitigating the impact of rising crack spreads in Delta's fuel cost. Delta also pointed out that insight into the jet fuel supply chain and the threat of self-supply has removed the risk of escalating supplier margins. [more - original PR]