Delta Air Lines is cutting flight capacity as it grapples with higher fuel costs and the effect of the earthquake in Japan, AJC reporter Kelly Yamanouchi writes.
Delta expects the earthquake, tsunami and nuclear crisis in Japan to reduce revenue at its Tokyo Narita Airport hub by $250 million to $400 million, or as much as 20 percent, Yamanouchi reports. Since the 2008 Northwest merger, about 8 percent of Delta’s revenue is generated in Tokyo.
The carrier is reducing its flight capacity in Japan by 15 percent to 20 percent through May, including the suspension of its new flights to Tokyo’s Haneda Airport, Yamanouchi writes. Delta is cutting some capacity at Narita, and will increase charter flights and flight capacity to other places in Asia including China and Seoul, South Korea.
“Then, we’re going to monitor how demand comes back,” said Delta president Ed Bastian at a J.P. Morgan conference in New York on Tuesday. He said the company expects the impact of the events in Japan to last for six to nine months, Yamanouchi reports.
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- Henry Unger, The Biz Beat
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