Delta Air Lines cuts growth plans as fuel costs rise

DELTA AIR LINES INC has announced a reduction in its growth strategy as surging jet fuel prices, linked to the conflict in Iran, weigh on second-quarter profit expectations. The Atlanta-based carrier is removing all planned capacity growth for the June quarter, representing a supply cut of approximately 3.5 percentage points compared to its original schedule.

The current energy environment is placing significant strain on airlines across the United States. Since late February, jet fuel prices have nearly doubled, marking a critical post-pandemic stress test for the industry. Since mid-March, domestic carriers have already reduced planned capacity growth by more than half a percentage point. Because fuel typically accounts for a quarter of operating costs, carriers are highly exposed when prices rise faster than ticket fares, which are often sold months in advance.