{"id":9846,"date":"2022-03-18T01:20:10","date_gmt":"2022-03-18T01:20:10","guid":{"rendered":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/"},"modified":"2022-03-18T01:20:10","modified_gmt":"2022-03-18T01:20:10","slug":"airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2","status":"publish","type":"post","link":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/","title":{"rendered":"Airline giant Delta warns oil increases mean higher ticket prices"},"content":{"rendered":"
\n

Higher oil prices will push air fares up 10%, according to the head of one of the world’s largest airlines.<\/b><\/p>\n<\/div>\n

\n

Delta Air Lines chief Ed Bastian told the BBC the ultimate impact “really depends on where fuel prices head off”.<\/p>\n<\/div>\n

\n

Oil prices hit a 14-year high after Russia invaded Ukraine.<\/p>\n<\/div>\n

\n

Emirates, Japan Airlines and AirAsia are among the major airlines that have recently introduced surcharges on their tickets to cover the higher cost of kerosene. <\/p>\n<\/div>\n

\n

Before the pandemic, 200 million customers were flying Delta in 2019, making it the second largest airline in the world by passenger numbers. <\/p>\n<\/div>\n

\n

Mr Bastian said that on a domestic flight in the US the increase in fuel prices is “probably about $25 per ticket, that could be anywhere from 5% to 10% with these high oil levels… and internationally.” [flights] will be slightly higher”. <\/p>\n<\/div>\n

\n

Delta plans to introduce fuel surcharges on its international flights, which account for about 35% of its business, and increase U.S. ticket prices.<\/p>\n<\/div>\n

\n
\n
    \n
  • Oil prices rise on fears of a deficit in Russia<\/li>\n
  • How has the conflict in Ukraine affected gas prices?<\/li>\n
  • How do we replace Russian energy?<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
    \n

    Jet fuel is one of the biggest costs for airlines. Michael O’Leary, CEO of Europe’s largest airline, Ryanair, recently said that the rise in oil prices will lead to “significantly higher” air fares this summer. <\/p>\n<\/div>\n

    \n

    Many airlines try to protect themselves from these changes by purchasing fuel in advance. Easyjet and British Airways both recently said they did so for 60% of their fuel needs this year.<\/p>\n<\/div>\n

    \n

    This year there were big swings. In early January, Brent crude — the international benchmark for oil — was below $80 a barrel, but recently it hit nearly $130 as the US and UK said they would stop using oil from the world’s biggest exporter, Russia.<\/p>\n<\/div>\n

    \n

    according to dr Fatih Birol, Executive Director of the International Energy Agency, further price swings are likely in the short term. He told the BBC: “I think the $100 [oil] we are seeing today may not be the highest price levels we will see over the next few weeks.”<\/p>\n<\/div>\n

    \n

    He warns that this will be felt in all areas of the world economy because it will lead to higher heating and electricity costs in addition to higher transport costs. That would exacerbate the cost of living crisis many countries are facing.<\/p>\n<\/div>\n

    \n

    Reports from India suggest it is considering combating high prices at the pump by buying discounted Russian oil. Many will not buy it due to Western sanctions, and Dr. Birol warned, \u201cOne should not forget that every single dollar of oil goes to the US [the] The Russian economy will fall back on the Ukrainian people as a tank or a bullet. In my view, this moral aspect should not be forgotten.\u201d<\/p>\n<\/div>\n

    \n

    Instead, he wants Middle Eastern countries, including Saudi Arabia, to increase oil production.<\/p>\n<\/div>\n

    \n

    The latest IEA forecast states that three million barrels of Russian oil could be taken off the market every day. However, this drop in supply could be offset by a drop in demand from China, where Covid has prompted fresh lockdowns. <\/p>\n<\/div>\n

    \n

    All of that unpredictability means Delta isn’t trying to buy its fuel upfront, Mr. Bastian said. “Sometimes you win and often you lose.”<\/p>\n<\/div>\n

    \n

    Instead, Delta has the protection of owning its Pennsylvania oil refinery, though it has been unsuccessful in recent attempts to sell it.<\/p>\n<\/div>\n

    \n

    “We’re thrilled to have it now,” says Mr. Bastian.<\/p>\n<\/div>\n

    \n

    The Delta chief also looks to a future where initiatives to combat climate change by reducing aviation’s carbon emissions mean oil prices are less of a concern.<\/p>\n<\/div>\n

    \n

    \u201cExisting fossil fuel and jet fuel technology must be phased out, and we must make these investments for the future toward a sustainable future.\u201d<\/p>\n<\/div>\n

    \n

    This means a shift to sustainable fuels such as biofuels or synthetic alternatives made through chemical processes.<\/p>\n<\/div>\n

    \n

    Mr Bastian says cost is the big obstacle, with such substitutes costing “three to five times what is available on the market today” to produce. <\/p>\n<\/div>\n

    \n

    The difference must be made by governments investing in expanding production. <\/p>\n<\/div>\n

    \n

    \u201cScale will reduce costs over time and inject more capital from private sources into exploration and the search for new technologies. These next five years are critical to making sure we have government support, not just in the US but around the world. “<\/p>\n<\/div>\n

    \n

    Returning to profitability after pandemic losses will also help fund the development of new technologies. The industry lost more than $51 billion last year, according to the International Air Transport Association, with global demand falling 58.4% from 2019.<\/p>\n<\/div>\n

    \n

    As Covid restrictions continue to ease, Delta had two record selling days last week, prompting Mr Bastian to be hopeful about the prospects.<\/p>\n<\/div>\n

    \n

    “The world is returning to travel and governments have decided that Covid is over.”<\/p>\n<\/div>\n

    \n

    “We’re seeing some of the biggest bookings we’ve ever had in our history. And not just in the US, but internationally as well.\u201d However, he adds that Asia is lagging behind other regions.<\/p>\n<\/div>\n

    \n
    \n
      \n
    • AirAsia boss urges governments to open borders<\/li>\n
    • Airline boss warns that fare increases are inevitable<\/li>\n
    • Coronavirus: Boeing says air travel will recover by 2024<\/li>\n<\/ul>\n<\/div>\n<\/div>\n
      \n

      Crucially, demand for lucrative business class fares is also returning. It’s currently around 60% of pre-pandemic levels, but Mr Bastian expects that to rise to 70% by the summer.<\/p>\n<\/div>\n

      \n

      He concedes “there are forms of business travel that will never return that are more efficiently managed via video technology,” but adds that leisure travelers are now showing a greater willingness to invest in premium services. <\/p>\n<\/div>\n

      \n

      Last year, Delta posted a $3.4 billion pre-tax loss, and the coronavirus-related disruption earlier this year means Mr. Bastian believes that will add to that earlier this year. <\/p>\n<\/div>\n

      \n

      “We’re going to lose some money mainly because of Omicron, it’s not fuel prices. But I expect that we will be profitable from the second quarter and beyond.\u201d<\/p>\n<\/div>\n

      \n

      You can catch the full interviews from Ed Bastian and Dr. Watch Fatih Birol on Talking Business with Aaron Heslehurst.<\/b><\/i><\/p>\n<\/div>\n

      \n

      Viewers in the UK can watch the show on Saturday and Sunday at 15:30 GMT <\/b><\/i>BBC News Channel. <\/b><\/i><\/p>\n<\/div>\n

      \n

      In other countries it will be on <\/b><\/i>BBC World News on Saturday at 12:30 & 23:30 GMT and on Sunday at 05:30 & 16:30 GMT.<\/b><\/i><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

      Higher oil prices will push air fares up 10%, according to the head of one of the world’s largest airlines. Delta Air Lines chief Ed Bastian told the BBC the ultimate impact “really depends on where fuel prices head off”. Oil prices hit a 14-year high after Russia invaded Ukraine. Emirates, Japan Airlines and AirAsia […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[45],"tags":[],"class_list":["post-9846","post","type-post","status-publish","format-standard","hentry","category-business"],"yoast_head":"\nAirline giant Delta warns oil increases mean higher ticket prices - Tahrir News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Airline giant Delta warns oil increases mean higher ticket prices\" \/>\n<meta property=\"og:description\" content=\"Higher oil prices will push air fares up 10%, according to the head of one of the world’s largest airlines. Delta Air Lines chief Ed Bastian told the BBC the ultimate impact “really depends on where fuel prices head off”. Oil prices hit a 14-year high after Russia invaded Ukraine. Emirates, Japan Airlines and AirAsia […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/\" \/>\n<meta property=\"og:site_name\" content=\"Tahrir News\" \/>\n<meta property=\"article:published_time\" content=\"2022-03-18T01:20:10+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/tahrir2day.com\/news\/#website\",\"url\":\"https:\/\/tahrir2day.com\/news\/\",\"name\":\"Tahrir News\",\"description\":\"News all over the world\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/tahrir2day.com\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/#webpage\",\"url\":\"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/\",\"name\":\"Airline giant Delta warns oil increases mean higher ticket prices - Tahrir News\",\"isPartOf\":{\"@id\":\"https:\/\/tahrir2day.com\/news\/#website\"},\"datePublished\":\"2022-03-18T01:20:10+00:00\",\"dateModified\":\"2022-03-18T01:20:10+00:00\",\"author\":{\"@id\":\"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4\"},\"breadcrumb\":{\"@id\":\"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/tahrir2day.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business\",\"item\":\"https:\/\/tahrir2day.com\/news\/category\/business\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Airline giant Delta warns oil increases mean higher ticket prices\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4\",\"name\":\"megahed\",\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/tahrir2day.com\/news\/#personlogo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g\",\"caption\":\"megahed\"},\"sameAs\":[\"https:\/\/tahrir2day.com\/news\"]}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Airline giant Delta warns oil increases mean higher ticket prices - Tahrir News","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/","og_locale":"en_US","og_type":"article","og_title":"Airline giant Delta warns oil increases mean higher ticket prices","og_description":"Higher oil prices will push air fares up 10%, according to the head of one of the world’s largest airlines. Delta Air Lines chief Ed Bastian told the BBC the ultimate impact “really depends on where fuel prices head off”. Oil prices hit a 14-year high after Russia invaded Ukraine. Emirates, Japan Airlines and AirAsia […]","og_url":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/","og_site_name":"Tahrir News","article_published_time":"2022-03-18T01:20:10+00:00","twitter_card":"summary_large_image","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/tahrir2day.com\/news\/#website","url":"https:\/\/tahrir2day.com\/news\/","name":"Tahrir News","description":"News all over the world","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/tahrir2day.com\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/#webpage","url":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/","name":"Airline giant Delta warns oil increases mean higher ticket prices - Tahrir News","isPartOf":{"@id":"https:\/\/tahrir2day.com\/news\/#website"},"datePublished":"2022-03-18T01:20:10+00:00","dateModified":"2022-03-18T01:20:10+00:00","author":{"@id":"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4"},"breadcrumb":{"@id":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/tahrir2day.com\/news\/2022\/03\/18\/airline-giant-delta-warns-oil-increases-mean-higher-ticket-prices-2\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/tahrir2day.com\/news\/"},{"@type":"ListItem","position":2,"name":"Business","item":"https:\/\/tahrir2day.com\/news\/category\/business\/"},{"@type":"ListItem","position":3,"name":"Airline giant Delta warns oil increases mean higher ticket prices"}]},{"@type":"Person","@id":"https:\/\/tahrir2day.com\/news\/#\/schema\/person\/5eb9492fbc67154812b39589e826b6e4","name":"megahed","image":{"@type":"ImageObject","@id":"https:\/\/tahrir2day.com\/news\/#personlogo","inLanguage":"en-US","url":"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0ee3294b28670178246ce92a6679bf959bc435d2fcd9cb9ab078702487c106df?s=96&d=mm&r=g","caption":"megahed"},"sameAs":["https:\/\/tahrir2day.com\/news"]}]}},"_links":{"self":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/posts\/9846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/comments?post=9846"}],"version-history":[{"count":0,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/posts\/9846\/revisions"}],"wp:attachment":[{"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/media?parent=9846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/categories?post=9846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tahrir2day.com\/news\/wp-json\/wp\/v2\/tags?post=9846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}