Log In

Reset Password
BERMUDA | RSS PODCAST

Airlines cut Bermuda flights as oil price soars

Cuts: Delta and United Airlines drop some Bermuda flights

Two airlines pulled flights to the Island as a result of skyrocketing fuel prices, it was revealed yesterday.

Delta Air Lines announced it will not resume its seasonal New York La Guardia service in May while United Airlines confirmed it too would not resume its twice-a-week service out of Chicago's O'Hare International Airport this summer.

According to L. F. Wade International Airport General Manager Aaron Adderley, the airline's decision reflects the industry's struggling efforts to cope with escalating fuel costs that have more than doubled in the last few years.

Spokesmen for the companies could not be reached. And the Premier, and Tourism Minister, Ewart Brown chose not to comment on the development.

In a prepared press release Mr. Adderley said: "Delta has long committed itself to the Bermuda market and believes strongly in the viability of a New York La Guardia service. Despite a slow start last year, the flight began to perform much stronger as the summer progressed and we collectively felt assured that it would grow on that performance this year, ultimately reaching a level of sustainability over a short period of time. However, in this industry climate, airlines quite frankly no longer have time.

"The pressure to cut expenditures quickly is enormous. The cost of fuel has jumped from less than $50 per barrel to nearly $110 in a span of only four years.

"The cutting back of seat capacity — something unheard of during the peak summer travel months — is now yet another measure that airlines are having to put in place in order to compensate for inflated fuel prices."

Mr. Adderley was abroad yesterday when Government announced the cancellations.

Speaking at the Federal Aviation Association Aviation Forecast Conference in Washington this week Delta CEO Richard Anderson said high fuel costs are the "first and foremost issue" for the airline industry, and high oil prices "really having a debilitating, negative effect."

In a US press release printed in several papers Delta said it would be reducing "select flights that cannot be profitable in light of the 70 percent to 80 percent increase in fuel prices experienced in the last year".

Meanwhile United Airlines is calling off its seasonal service from Chicago to Bermuda.

Mr. Adderley said: "United was excited about the possibilities of a return this year, having seen incremental increases in passenger loads for the service, year over year, for the past three years, but the cost of operating the flight – specifically the fuel cost of operating the flight — have proven to be too prohibitive at this time."

Mr. Adderley said he did not believe the cancellations would lead to a drop in hotel occupancy rates.

Mr. Adderley said: "While we obviously prefer not to lose flights, we're confident that in assessing the current inventory of hotel beds, we have an ample number of flights and the appropriate seat capacity to accommodate the number of visitors needed to fill beds.

"Quite frankly, the expected temporary loss of these seasonal flights moves us toward a more optimum balance between available beds and available seats.

"Both Delta and United regarding those two flights as they have both indicated that under improved economic conditions, these are viable opportunities for them to pursue."

John Harvey, chief executive officer of the Bermuda Hotel Association, echoed his sentiments.

"Of course this is disappointing," he said.

"But we will continue to work with the other airlines to ensure that we have a good summer season and our hotels are occupied.

"I don't believe this could be a trend that other airlines will drop their service.

"The Delta La Guardia comes and goes in spurts and we always welcome it.

"The Chicago flight was showing signs of promise so hopefully it will resume in the future."