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Delta: Japan Crisis to Cut Revenue by up to $400 Million

Tuesday, 22 Mar 2011 08:38 AM

Delta Air Lines said Tuesday that 2011 revenue will be cut by $250 million to $400 million due to the crisis in Japan.

The nation's No. 2 airline is also reducing the amount it flies to Japan and elsewhere to save money because of sharply higher fuel costs. It's the second time this year that Delta has scaled back plans for the amount of flying it will do this year.

Delta and other major airlines have also raised fares this year to offset a rise in jet fuel costs, which have tracked a 38 percent increase in the price of oil since Labor Day.

Delta plans to reduce Japan flying by about 15 to 20 percent through May because of slower demand as the country recovers from the March 11 earthquake and tsunami.

Overall flying in the second half of the year will drop 4 percentage points, the Atlanta airline says, with the biggest cuts on routes to the Pacific. Flights to that region will grow just 5 percent, down from a planned 13 percent increase.

In the U.S., Delta now expects to reduce flying by about 3 percent. Delta's previous forecast was for a 2 percent increase.

Delta made the disclosure as part of a presentation to the J.P. Morgan Aviation, Transportation and Defense conference in New York. United Continental Holdings Inc. and AMR Corp., the parent of American Airlines, are also scheduled to present. Like Delta, both have increased service on lucrative routes to the Pacific region.

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Delta Air Lines said Tuesday that 2011 revenue will be cut by $250 million to $400 million due to the crisis in Japan.The nation's No. 2 airline is also reducing the amount it flies to Japan and elsewhere to save money because of sharply higher fuel costs. It's the second...
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Tuesday, 22 Mar 2011 08:38 AM
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