Delta stated today on its earnings call its concern with rising fuel prices, and how this will negatively impact their earnings. The rise in traffic is welcome, but that rise may not be fast enough to offset rising fuel costs. So what do these costs look like for the industry as a whole, and Delta specifically?
Using the T-2 dataset from 2005 through mid-2021 we get the following model. This gives a good period to evaluate as it includes previous fuel price spikes. by selecting an airline you can, after clicking the play button, see how that airline’s fleet behaved in terms of the number of flights and fuel burned (gallons).
The bubble size is driven by the number of flights. The model also offers users an interesting feature – click on any bubble to see how aircraft tracked over the period. The vertical dashed line is the average number of flights and the horizontal dashed line is the average amount of fuel burned. The “worst” place to be is in the top right quadrant. The “best” place to be is in the bottom left quadrant.
Delta stated today on its earnings call its concern with rising fuel prices, and how this will negatively impact their earnings. The rise in traffic is welcome, but that rise may not be fast enough to offset rising fuel costs. So what do these costs look like for the industry as a whole, and Delta specifically?
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