Why Delta Airlines Is Less Affected by Boeing’s Safety Issues

Analysts have pointed out that Delta Air Lines is most flexible regarding aircraft problems and the impact of high oil prices.

“Delta Air Lines is in a unique position to fully benefit from solid passenger demand due to its low exposure to Boeing aircraft, and it is less affected by the impact on margins from rising fuel costs due to high oil prices,” said Ko Seon Young, a researcher at Yuanta Securities.

In the current phase, where strong demand does not apply equally to all airlines, the impact on performance is limited due to government-led monitoring and suspension of Boeing 737 operations, which had a safety issue in January and accounted for about a quarter of the total aircraft.

Ko said, “As international oil prices are rising again due to the effects of war, the aviation industry remains concerned about profitability due to increased fuel costs. Delta Air Lines has the lowest fuel cost burden among major airlines due to high oil prices, as it supplies some of its fuel from its own refinery.”