EconomyFinancialDelta warns of higher prices due to high fuel...

Delta warns of higher prices due to high fuel costs

Rising oil prices may have repercussions for the cost of Delta Air Lines airline passes, according to Ed Bastian, CEO of the company.

The increase in the cost per passenger could be between 5 and 10% higher for a domestic flight in the United States, according to the executive told the BBC.

Bastian added that the increase may be even higher in the case of international flights, the final impact “really depends on where fuel prices settle.”

Before the pandemic, in 2019, 200 million passengers flew with Delta, making it the second largest airline in the world.

Stemming from the conflict between Russia and Ukraine, the cost of oil in the United States has reached record highs. At the beginning of the month, the North American country announced that it would prohibit imports of Russian oil and gas.

“This means that Russian oil will no longer be acceptable in American ports and that the American people will deal another mighty blow to (Vladimir) Putin’s war machine,” US President Joe Biden said at the time. .

Since then, oil prices have skyrocketed.

Delta plans to introduce fuel surcharges on international flights, which represent about 35% of its operation.

Over the past week, Russian crude and refined oil exports fell by about 3 million barrels a day, according to an analysis by Energy Intelligence, an international energy market information firm.

Russia is the third largest oil producer in the world behind the United States and Saudi Arabia.

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