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00:02Delta Airlines said it will reduce capacity growth as fuel costs rise following the Middle East
00:07War, according to CNBC. The airline expects second quarter adjusted earnings of $1 to $1.50
00:12per share on revenue growth in the low teens percentage range, compared with expectations
00:17of 1.41 per share and roughly 10% growth. Capacity is expected to be flat year over year.
00:23Lower capacity is pushing airfares higher as Delta, JetBlue, and United raise bag fees,
00:28while global carriers add surcharges or increase fares due to rising fuel costs and import
00:33reliance. The airline said its fuel bill will increase by $2 billion this quarter and expects
00:38fuel costs of $4.30 per gallon. CEO Ed Bastian said it is unclear when customers may pull
00:44back, and noted Delta's refinery provides an advantage if fuel prices remain elevated.
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