Delta to reduce planned capacity growth to below 2% for 2H2016, 'fares continue to be depressed'

Delta Air Lines announced (16-May-2016) plans to reduce planned capacity growth to below 2% for 2H2016, as it seeks to address current fuel and revenue headwinds and position itself to achieve its long-term goals. The carrier will remove up to one point of planned capacity growth for 4Q2016 to address rising fuel prices and improve its unit revenue trajectory, while domestic growth will be reduced from 4%+ during the first three quarters to 2.5% in 4Q2016. Delta said international capacity will be flat to down in 2H2016 for the second year in a row, with Atlantic capacity to come down from 3%-4% during the summer season to flat for the winter IATA season. Latin capacity growth will turn negative in 2H2016, while Pacific capacity will see capacity reductions in 4Q2016. The carrier will also defer the delivery of four widebody aircraft from 2018 to 2019/2020. Delta said it is continuing to deliver on its aggressive targets as well as investing in its long-term business. Volumes across most corporate sectors remain positive, Delta said, although "fares continue to be depressed." [more - original PR]