Delta Says, Travel Rebound Helpful to Offset Rise in Jet Fuel Price

Delta Air Lines said that as airlines anticipate a busy summer, increased travel demand is helping to offset the sharp rise in jet fuel prices.

Delta Air Lines reported a $940 million loss over the past three months and said that it returned to profitability during March, despite soaring fuel prices and expects to report a profit in the second quarter.

The surge in Covid-19 Omicron variants was a setback for airlines earlier this year. Leisure travellers cancelled trips, the company hesitated to return the employee to the office, and the flight was interrupted when the employee was called in sick.

Prices have risen to their highest levels since 2008 when Russia's invasion of Ukraine caused oil prices to skyrocket. Delta reported that jet fuel prices rose 33% to $2.79 a gallon in the first quarter. The company expects prices to rise to $3.35 per gallon in the second quarter, including a 20-cent gallon profit from the refinery.

Delta's core businesses and international travel also began to recover during the quarter, the company said. Profitable business travellers are returning more slowly than leisure travellers who are more or less returning to pre-pandemic flight levels.