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Thursday May 15, 2008
Reuters
Delta Adds Ups Fares USD$10 To Offset Fuel

Delta Air Lines on Wednesday said it added another USD$10 to US domestic round-trip fares to offset rising jet fuel prices.

A spokeswoman for Delta said the USD$10 is an increase to the fuel surcharge. The increase comes on the heels of one last week, when major carriers, including Delta, increased their fuel surcharges by up to $50 round-trip.

The increase reflects the pain that airlines are feeling as jet fuel prices, which rise with the price of oil, soar to record levels, and the US economy weakens. A barrel of crude touched a record high of USD$111.80 on Monday.

On Tuesday, Delta unveiled plans to cut 2,000 jobs and scale back flights as it led efforts by US carriers to cut costs.

Delta, which has been unable to seal a merger with rival Northwest Airlines, will offer voluntary retirement and buyout packages to 30,000 employees.

It is aiming to cut 1,300 rank-and-file jobs and 700 administrative and management jobs, or more than 3 percent of its work force overall.

(Reuters)

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