National Ski Council Federation

Delta Fee Increase

Delta to increase fees and charges

Delta to implement $3 curb administrative fee, and increase other fees and charges due to rising fuel costs (SEE ATTACHMENT)

In an effort to address and recapture the cost of record-breaking fuel, we are implementing a $3 curb administrative fee, and increasing other fees and charges effective April 1, 2008.  The first phase of the $3 curb administrative fee will take effect April 1 in the following locations: Atlanta, Boston, Cincinnati, Fort Lauderdale, Los Angeles, New York-JFK, New York-La Guardia, Orlando, Palm Beach, Salt Lake City and Tampa.  The second phase, which includes 75 additional domestic Delta locations that already have curbside check-in, will be April 15.

Additional fee/charge changes include: unaccompanied minor, oversize baggage, pets in cabin, pets checked as baggage, plastic bags, direct ticketing charge, external reissue charge, SkyMiles OA Handling Charge, SkyMiles Award Ticket Reissues and Mileage Redeposit Fee, Administrative Service Charge and Crown Room Club One-Visit Pass. In many cases, these changes will make our fee structure more competitive with those of other airlines while also addressing cost pressures. 

As we have already announced, we will also begin charging passengers $25 for a second checked bag.  The fee is applicable for passengers traveling domestically on or after May 1. All Medallion Members and those passengers traveling in the First/Business Class cabin will still be allowed to check up to three bags at no additional charge on Delta and Delta Connection- operated flights only.

Overview

Due to rising fuel costs and business decisions reflecting today’s competitive landscape, Delta will implement a $3 curb administrative fee, and increase other fees and charges effective at 12:01 a.m., April 1, 2008.  These changes are effective immediately, regardless of ticketing date.

Key Messages 

• The recent rapid increase in fuel costs to new record highs and the weakening U.S. economy is placing intense pressure on our business and in fact is expected to increase our 2008 fuel bill by nearly $900 million. 
• We must act quickly and decisively, as speed in execution leads to success.  With fuel expected to remain at approximately $100 per barrel for the foreseeable future, we must take action to keep Delta strong.
• These changes are being made in order to help offset the record-breaking cost of fuel to our business.
• In many cases, they will make Delta's fee structure more competitive with those of other airlines while also addressing the rising cost of fuel.
• Delta continually reviews all aspects of our business for revenue and cost-saving opportunities.  Any future changes will be communicated on a timely basis as they are implemented.

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