Delta Air Lines will cut about 3.5% of its flights next quarter and raise baggage fees as jet fuel costs surge following the Middle East conflict, forcing carriers to reverse growth plans.
Delta expects jet fuel to exceed $4.30 per gallon, more than double pre-war prices, and anticipates an additional $2 billion in fuel costs in the second quarter after already paying about $400 million extra.
Willie Walsh, director general of the International Air Transport Association, said the war has closed the Strait of Hormuz and damaged oil refining infrastructure, meaning jet fuel supplies will take months to return to normal.
United Airlines and JetBlue have also increased baggage fees, and Asian carriers including Korean Air have moved into emergency management amid widespread flight cuts and rising fares. Delta still projects about $1 billion in second-quarter profit and uniquely owns a Pennsylvania refinery that may help buffer fuel costs.
This article is based on reporting from Jalopnik.
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