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They are trying to generate traffic through their Atlanta hub to compete with Continental, US Airways and American flying to Latin America.

Latin America key to Delta's international growth
Wednesday, April 26, 2006

Ten years ago, Delta flew to just 14 international destinations from its Atlanta hub. But this summer, the carrier will fly to 67 foreign cities from Atlanta -- including 42 alone in Latin America and the Caribbean. “The (international) buildup is critical to Delta's ongoing bankruptcy reorganization, which involves cutting costs while boosting revenue, primarily through increased international flying,” writes TheStreet.com. Two other changes have helped Delta zero in on Latin America, says James Sarvis, Delta's director for Latin America and the Caribbean. He cites a boom in Atlanta's Hispanic population, which he credits with creating a strong demand for non-stop travel to Latin America. And, he tells TheStreet.com that Delta's decision to phase out its low-cost unit Song has freed up jets for international service, with some of Song's 48 Boeing 757s now slated to be used on routes to destinations like Bogota, Columbia, and Quito, Ecuador.
(even these clowns can't spell COLOMBIA).

But rivals have taken notice of Delta’s rapid international growth. At Continental –- currently the No. 2 U.S. carrier to Latin America -- President Jeff Smisek was quoted recently as saying "unlike some of our Johnny-come-lately competitors and imitators, we've been committed to international expansion for a decade." Regardless of what’s behind Delta’s recent push, the airline’s position in Atlanta offers a great opportunity to build a Latin America-focused international hub, according to TheStreet.com. It notes that the USA’s top Latin American carrier -– American –- has a formidable hub in Miami, but says “Miami can't match Atlanta's domestic connections” to Latin America. Still, Atlanta does have rival airports that could compete vigorously for Latin American traffic –- notably Continental’s Houston hub and US Airways’ at Charlotte.

Surcharges are fueling higher costs of travel
By Gene Sloan, USA TODAY

Ouch! That's a big fuel surcharge.

Qantas says that effective May 5 it will levy an extra $98, each way, on international flights to compensate for rapidly rising fuel prices. And it's not the only airline moving quickly to pass on rising fuel costs to long-haul customers.

Lufthansa last week raised its fuel surcharge on long-haul flights to $76, sister company Swiss airlines boosted its levy to $84, and Irish carrier Air Lingus launched its first surcharge ($43, each way, on flights to and from the USA). The same week, British Airways hiked its surcharge on long-haul flights for the eighth time in two years, to $61 per flight, and a week earlier American Airlines added a $10 long-haul surcharge.

"The fuel-surcharge situation is going a bit crazy right now," says airline watcher Tom Betts, editor of flycheapo.com, noting that every week seems to bring another round of increases.

Betts says travelers should brace for more hikes if oil prices — which hit $75 a barrel last week — don't come down soon. "Ticket prices will rise (due to fuel costs), either obviously with these surcharges or (less obviously) in a more general rise in the cost of tickets."

Airlines are being creamed by the latest hike in fuel costs. Airline watcher Terry Trippler of Cheapseats.com says it now costs $103,400 to fill a Boeing 747-400 for a flight to Asia, up from $48,000 two years ago. That works out to $253, one way, for each of the 408 seats — more, he notes, than the $227, not including taxes, he recently paid for a Northwest flight from Detroit to Tokyo.

Rising fuel costs also are hitting cruise lines hard, but so far only a handful of small luxury lines have passed the cost on to passengers. Earlier this month, Regent Seven Seas boosted its surcharge on Tahiti cruises from $5 to $12 a person, per day. Crystal has used a $4-a-person daily surcharge since last July.

Industry watcher Mike Driscoll, editor of the newsletter Cruiseweek, says the good news for cruisers is that major mass-market lines such as Royal Caribbean and Carnival probably won't add a surcharge anytime soon. "The apparent concern is that Wall Street would view such a move in a negative light, and cruise leaders are trying to (downplay) the long-term impact that rising fuel costs are having on their business."

Surcharges or not, vacationers continue to book far-flung trips in record numbers, says travel agent Kathy Sudeikis of All About Travel in Mission, Kan. "It has not been slowing demand for summer travel yet," she says. "People already had decided where they wanted to go, and they're too committed to change those plans at this point."

Still, Janie Graziani of AAA, one of the nation's largest travel agencies, says the extra charges are annoying to consumers. "One of the problems is the fuel surcharge isn't included in the advertised price, so that makes the cost of the ticket look artificially low. Consumers need to be aware of it."