Rising Costs Put A Wrench In Delta's Restructuring Plan

The fuel costs that have hindered a return to profitability for the airline industry will only go higher. So say industry analysts who believe the price of crude oil could hit $60/barrel. And that could put a big crimp in Delta Airlines' reorganization plans.

Less than three months after Delta announced its new Simplifares program, reducing some fees and putting a cap on ticket prices, the Atlanta-based airline has been forced to raise fares to cover the rising cost of fuel. Delta's domestic fares have gone up between $5 and $10 for each flight segment, depending on the distance.

But passengers don't seem to be alarmed, according to the Cincinnati Business Courier.

"I haven't noticed, and I don't know that I would notice if a fare went up $10 or $20," said Wayne Taleff, owner of Talgood Travel. "I think it's a great idea. I don't know who is going to cancel their trip over $10 or $20 extra in airfare."

While a Delta spokeswoman confirmed the airline is raising prices to cover fuel costs, she was quick to stress that other aspects of the new Simplifare program -- for instance, an end to Saturday night stay requirements -- remain in place, according to the Cincinnati paper.

FMI: www.delta.com