Delta To Cut Back On International Flights
Despite recording the best quarter in company history when it announced earnings this week, Delta Air Lines said it will cut back its international flights later this year, in what many analysts are saying is a prudent financial move.
The cutbacks will be in the fall and winter, and are in markets most affected by the strong dollar.
These are also markets where a continued decline in oil prices has affected demand.
"Key actions for the December quarter will include a 15-20 percent reduction in service from Japan, a 15 percent reduction to Brazil, a 15-20 percent reduction to Africa, India and the Middle East, and suspension of service to Moscow for the winter season," Delta said in its earnings release.
In total, it still only amounts to an overall three percent cut in international capacity.
The airline recorded its highest first quarter earnings ever in a time frame (January through March) that is traditionally the worst for airlines, as cancellations and delays from winter weather wreak havoc on schedules.
Delta had net income of $746 million in the first quarter, compared to $213 million in the same period last year.
Delta began Wednesday with its stock price hovering at $43 a share. By mid-day Thursday it shot up to $45.25 and, just before close on Friday, was sitting at $44.83 as investors clearly liked the news of a reduction in flights and that Delta would not overgrow capacity.
More by Rich Thomaselli
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