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Old 07-10-2018, 11:16 AM
 
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Airline companies are set to report earnings this week, beginning with Delta Air Lines (DAL) on Thursday. The industry, as a whole, has been suffering from rising fuel costs, despite seeing an increase in passenger influx. Fuel price inflation had earlier forced Delta to reduce its guidance for Q2 EPS and pre-tax margin.
https://news.alphastreet.com/earning...cord-services/
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Old 07-10-2018, 05:30 PM
 
Location: Silicon Valley, CA
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Well Delta is well known for having some of the oldest planes in the business. Older planes corresponds to higher fuel consumption.
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Old 08-06-2018, 08:58 AM
 
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Originally Posted by silverkris View Post
Well Delta is well known for having some of the oldest planes in the business. Older planes corresponds to higher fuel consumption.
Delta has roughly 434 jets of four models, all of which are fairly old. That's a bout half of it's fleet
Average
25.2 years McDonnell Douglas MD-80/90 166
22.5 years Airbus A320 62
20.5 years Boeing 757 127
20.7 years Boeing 767 79

The sheer cost of replacing that many jets is overwhelming. If a radical rise in price of fuel makes them impossible to operate efficiently, then what are the alternatives?

Delta is the most extreme among the big thee (United-American-Delta) in that half of the domestic passengers Delta is flying on any given day are flying into or out of Atlanta Airport. United is almost evenly spread among San Francisco, Denver, Chicago and Newark with strong second level hubs at Washington Dulles and LAX.

If rising fuel prices makes much of Delta's fleet obsolete at once, there is a possibility that Delta will try and shrink and close some of it's hubs (presumably its focus cities of Boston, Cincinnati and Raleigh/Durham would be vulnerable, but so would it's hubs at MSP and SLC ).

SEA is really their smallest hub, but they seem to be staking a lot of their future on that city.
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