Fuel Crisis Impact: Expect Airline Consolidation — or Elimination, Delta CEO says
Photo Credit: A file photo of a Delta Air Lines Airbus A330. Vincenzo Pace / Vincenzo Pace
Skift Take
Delta is now grappling with elevated fuel costs, causing the carrier to cut capacity and raise fares. Delta CEO Ed Bastian said the oil crisis is different from past crises due to the speed at which fuel prices have increased.
Delta Air Lines CEO Ed Bastian said he expects elevated fuel prices to bring about more structural shifts to the airline industry as low-cost carriers struggle with higher operational costs.
“I think high fuel prices more than any other factor, have created that sense of urgency amongst the industry to either improve through performance, improve through rationalization, improve through consolidation, or face being eliminated,” Bastian said during a call with reporters.
He said that the current oil crisis was unlike past crises for the industry due to how quickly prices have increased. The average jet fuel price from major U.S. cities was at $4.81 a gallon as of Tuesday, according to data compiled by Argus Media and p
