Delta Air Lines Fuel Costs Rose in 4Q — Commodity Comment

By Matt Grossman

Delta Air Lines Inc.’s fuel costs were higher in the fourth quarter in absolute terms and on a per-gallon basis, the company said.

On jet fuel:

“Fuel expense, adjusted of $1.6 billion in the December quarter 2021 increased 4%, or $55 million compared to the September quarter 2021.”

“Adjusted fuel price of $2.10 per gallon was up 8 percent compared to the September quarter 2021 driven by higher market prices and partially offset by continued refinery contribution and an improvement in [renewable identification numbers] pricing and volume obligations.”

“During the December quarter 2021, fuel efficiency, defined as gallons per 1,000 [available seat miles], improved 4.3% versus the same period in 2019 as a result of our fleet renewal efforts.”

“In addition, carbon offsets expensed during the quarter drove a 3c impact on fuel prices as Delta supports its commitment to carbon neutrality by pursuing high-quality, verified offsets.”

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