Atlanta-based Delta Air Lines plans to cut international flying by 3 percent this winter, saying the strong dollar is creating “currency headwinds” overseas.
The cuts will include a 15 to 20 percent reduction in Japan flights, a 15 percent cut to Brazil, a 15 to 20 percent cut to Africa, India and the Middle East and suspension of service to Moscow for winter, Delta said. The cuts are focused on markets most affected by the strong dollar and where oil price declines have affected demand, the airline said.
Delta still plans to increase domestic flying by 2 percent, resulting in flat flight capacity overall for the fourth quarter ending in December.
The company made the announcement as it reported $746 million in net income for the first quarter, and said it had a record pre-tax March quarter profit. Although fuel prices are lower, Delta’s results included $1.1 billion in settled hedge losses on advance fuel contracts. Delta also said its scheduled flight capacity increased 5 percent in the first quarter, but it removed 2 percentage points of that capacity due to winter storms. Its passenger traffic increased 3.6 percent.
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