Delta's Slashing International Flights Because the Dollar Is Kicking Ass
These days, the dollar is stronger than Arnold Schwarzenegger in 1984; it's practically terminating the euro, and making Europe dirt cheap right now. That's great news for American travelers. But on the flip side, it sucks for foreign travelers coming here -- what do we care? -- and for airlines. Which, will get no sympathy from anyone.
And with that in mind, Delta announced Wednesday it will be saying hasta la vista to a number of international flights later this year. The US airline plans to slash routes to Japan, Africa, India, and the Middle East by 15-20%, to Brazil by 15%, and suspend its service to Moscow entirely, thanks to dwindling interest from travelers abroad.
“To address currency headwinds, Delta plans to reduce its international capacity by 3 percent year over year for the winter schedule,” the airline said in a statement Wednesday. The carrier will significantly scale back service “on markets that have been most affected by the strong dollar and markets where demand has been negatively impacted by the decline in oil prices.”
As Bloomberg explains, since Delta makes approx. 30% of its revenue from overseas sales, the plummeting cost of fuel and increasing strength of the US currency ultimately means less money for the carrier, "contributing to lower revenue from each seat flown a mile." In case you weren't aware: airlines are businesses, and care most about profit margins.
So if you were hoping to fly somewhere decidedly warmer with Delta this winter, you might want to change those plans now. Or at least, find a new airline.