Delta Air Lines reducing Japan service as fuel prices increasing

Delta Air, among other air travel services, has reduced the number of flights the airline is conducting out and in of Japan because of the disasters that have taken place there. Falling demand and increasing costs have caused numerous airlines to cut service to and from Japan after the nation was rocked by natural disaster. Airlines worldwide are also feeling the pinch of increasing costs of jet fuel. Article source – Delta Air Lines reduces services to Japan as fuel prices rise by MoneyBlogNewz.

Japan service from airlines cut

The number of flights going out and in of Japan is being reduced across the board, as main airlines have too little demand and costs are too high to keep sending flights, in accordance with Bloomberg. Japan flights have been dropped by many main airlines due to the March 11 earthquake. These include Korean Air Lines, Cathay Pacific Airways, and Singapore Airlines and Qantas JetStar line.

Reuters states service will be slowed at Delta as well. Until May, service will go down 15 to 20 percent. The business estimates the quake, tsunami and nuclear disaster will cost it $250 to $400 million. However, American Airlines has not yet declared it will reduce its service to Japan, which is provided through a joint venture with Japan Airlines. Each year, you will find over 9 million people that go to Japan from the U.S.

Price of fuel means a harder time paying for flights

Airlines worldwide have been contending for the past several months with rising jet fuel prices. There has been unrest in Libya and the Middle East for the past few weeks which has caused fuel costs to go up. Before that, the price was already increasing though because of the bad winter. As a result, air fare increases are being implemented by numerous airlines. Forbes reports that even though there have been 16 percent more Southwest Airline passengers added since past year, the airline has already increased air fares six times this year.

Put more money into summer trip costs

The increases in oil, gasoline and jet fuel prices have nothing to do with any actual shortage of supply caused by unrest in Libya, which provides only 2 percent of world supply, according to CNN. The costs end up going up due to fear. Many have concerns that there can be more unrest in more nations.

Unfortunately means that a full tank of gas is going to cost more during the summer, and many people may need installment loans to finance plane tickets for summer travel. How much more costly air tickets will become remains to be seen, however projections seem to indicate the cost of travel will continue to rise for some time.

Information from

Bloomberg

bloomberg.com/news/2011-03-22/delta-air-lines-cuts-japan-seats-up-to-20-amr-says-quake-damped-revenue.html

Reuters

reuters.com/article/2011/03/22/us-delta-idUSTRE72L3HG20110322

Forbes

forbes.com/feeds/ap/2011/03/22/business-industrials-us-southwest-outlook_8368679.html

CNN

money.cnn.com/2011/03/22/markets/oil_prices/index.htm