Citing excessively high jet fuel costs, Delta Air Lines today said it raised by $100 to $599 and $699, respectively, the cap on domestic economy and first class fares, abandoning lower cap levels established in January as part of domestic airfare reform
(BTN, Jan. 17). The changes affect full-fare walk-up fares and certain three-day advance purchases. The airline said it maintains "popular features of no Saturday-night stays and flexible change rules."
"When Delta launched SimpliFares in January, crude oil was selling at $43 per barrel compared to as much as $61 per barrel in recent weeks," said Paul Matsen, senior vice president and chief marketing officer. "Despite our best intentions to keep the current fare caps in place, we have been forced to find ways to offset this dramatic spike in costs."
Analysts and executives at other airlines have said that for any substantial airfare hike to hold beyond those enacted around the industry this spring
(BTN, June 20), Delta would have to adjust its caps. Having done so today, Delta likely paved the way for it or other carriers to attempt fresh price increases.