Houston, 14 July (Argus) — Delta Air Lines' second quarter average fuel price rose by 11.1pc from the first quarter on higher crude prices and losses at its Trainer refinery in Pennsylvania, which added 23¢/USG to its total fuel expenses of $1.463bn.
The Atlanta, Georgia-based airline had an adjusted average fuel price of $2.12/USG in the second quarter, down by 1.8pc from $2.16/USG a year earlier, at the height of Covid-19-related travel restrictions, but up by 2pc from the same quarter in 2019. First quarter 2021 fuel prices averaged $1.87/USG for the airline.
In April the group forecast a $1.85-1.95/USG average fuel cost for the second quarterbased on forward curves suggesting crude feedstocks in the low $60/bl range and jet fuel cracks in the $5-6/bl range. But those April projections fell 8-13pc shy of what the carrier ultimately paid out for fuel as the price of crude surged in the second quarter to highs in the mid-$70/bl range.
Losses at the Trainer refinery, which the group purchased in 2012 with the goal of cutting up to $300mn from fuel expenses annually, were not disclosed.
The airline says fuel efficiency in the second quarter improved by 7.1pc compared to the same period in 2019, with around 5pc of that improvement attributed to fleet overhaul and the remainder to reduced airport congestion and lower load factors. Delta yesterday said it will add seven Airbus A350s and 29 Boeing 737-900ERs through sale and lease agreements as part of a fleet renewal aimed at flying more capacious and fuel-efficient flights.
Demand rebounding unevenly
North American airline passenger traffic has begun encroaching on 2019 levels in recent weeks — the Transportation Security Administration reported 13.702mn passengers in the week ending 9 Jul, down 25pc from 2019 — but demand has been slower to pickup internationally thus far in 2021, according to data released from the International Air Transport Association (IATA) this week.
Delta chief executive Ed Bastian acknowledged that domestic leisure demand drove much of the carrier's growth in volumes in the second quarter, but noted "encouraging signs of improvement" in both international and business routes.
The group expects transatlantic routes to operate at a mid-80pc capacity level in the third quarter compared to 2019 levels, despite continuing US regulation banning the entry of European leisure travelers. The second quarter 2021 Atlantic international flights were at 68pc of 2019 levels, while second quarter 2020 levels were just 5pc of 2019 levels.
Further afield, the company said it expects demand from Asia-Pacific to lag behind other regions because of lower vaccination rates and continued concerns over outbreaks and virus variants. IATA estimated this week that demand for international air travel was 94.3pc lower in May than two years earlier in Asia-Pacific, compared to 74.4pc lower in North America. Delta booked a net loss of $678mn in the quarter ending 30 June, compared to a $1.2bn net loss in the first quarter and a $5.717bn net loss for the same quarter in 2020. The airline operated in the second quarter at 32pc lower scheduled capacity and 39pc lower sellable capacity compared to the same quarter in 2019, with the latter figure reflecting its practice of not filling middle seats into April as a result of concerns over Covid-19 transmission.
By Dylan Chase
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发表于 2021-7-15 12:02:09
