JiffyLube

Guess with oil at $110 a barrel RJ's are not as profitable as they once were....

Skyrocketing fuel costs prompt U.S. route cancellations
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March 14, 2008

Because of the continuing spike in oil prices, and its effect on jet fuel costs, we are discontinuing service in markets as part of an ongoing strategy to manage those costs. Select flights and markets that cannot be profitable in light of the increase in fuel prices are being canceled.

By May 1, we will discontinue service in four markets operated by Delta Connection carriers. From Salt Lake City, we will discontinue service to Bellingham, Wash., and Fargo, N.D., both operated by SkyWest Airlines. From Atlanta, we’ll stop service to Atlantic City, N.J., and Islip/Long Island, N.Y., both operated by Atlantic Southeast Airlines.

“As a result of the 70% to 80% increase in fuel prices experienced over the last year, we continue to fight rising fuel prices through capacity reductions in the U.S. and by shifting more aircraft to international routes,” said Joe Esposito, managing director-Schedule Planning. “During 2008, we are trimming domestic schedules in select domestic markets at off-peak times and reducing the number of regional jets in our fleet, while at the same time growing our international capacity.” Other domestic regional jet markets that have been canceled previously as a direct result of increased fuel prices include Corpus Christi and McAllen, Texas, and Tupelo, Miss.

Because of our cost effective and flexible fleet, there is a possibility for further domestic reductions as necessary, Joe said. “We will continue to review market conditions to ensure we are most effectively responding to these persistently high fuel prices,” he said.

labbats

Same story, different statement from Delta.

Delta will end service to Bellingham, Wash., as the carrier says soaring fuel prices force it to reevaluate its routes. That move came on the same day Delta announced it would also end service to Long Island's MacArthur Airport. The Bellingham Herald quotes Delta as saying it was ending its Bellingham service as part of part of "its strategy to reduce select flights that cannot be profitable in light of the 70% to 80% increase in fuel prices experienced in the last year."

Delta began Delta Connection service to Bellingham –- about 90 miles north of Seattle and 50 miles south of Vancouver -– in 2006 with two daily round-trip flights to Salt Lake City. That dropped to one flight last fall. Delta spokesman Anthony Black tells the Herald it was difficult for Delta and its partners to turn a profit on the route using a 50-seat regional jet, which he says has high per-passenger costs even beyond fuel. "Even if your aircraft is full, you're not going to be able to make up that margin of cost," he says.

DYNASTY HVY

Dunno why you would run unprofitable routes to begin with.
No offense.

rickair7777

In the hopes of growing those markets into something profitable...it's a standard business 101 concept. Airlines, however, never seem to know when to quit...

DYNASTY HVY

ROFL ! EXACTLY

Thedude

Maybe some of those routes connect to the higher revenue international market

BoredwLife

Just like Horizon going to the extreme and most likely eliminating the RJ-700 from the fleet all together.

Albief15

The ATR and Q-400 will probably make a comeback. Turboprops may be loud, but they still squeek out more out of a pound of fuel.

mrvmo

Just was thinking the same thing as we were taxiing out of Warsaw yesterday about the turboprops. They never really went away over in Europe like they did in the U.S. Maybe it's time to buy some shares of the companies that make ATR's and Dashes.

KC10 FATboy

Things are not looking good for the commuter companies. They are simply not economical at oil prices this high. We need a 100 seat efficient airplane. The 50 and 70 seaters will become a thing of the past if oil doesn't come back down.