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The United States Department of Transportation's Bureau of Transportation Statistics has provided new data regarding transportation costs. According to the report, the consumer price index for all transportation goods and services decreased by 0.9% from March 2024 to March 2025. Specifically, airline fares were reduced by 2% in this period. Additionally, transportation costs, which include expenses like vehicle insurance and fuel, lowered the overall consumer price index by 5.7%.
Gasoline prices played a significant role in this decline, decreasing by 14.4%. Delta Air Lines was the first major airline to report financial results for the first quarter ending March 31. The airline recorded a quarterly non-adjusted net income of $240 million and a non-adjusted operating profit of $569 million. Operating revenues rose by 2% year-on-year to $14 billion. Delta's Chief has noted, "Based on current trends, we expect June quarter total revenue to be down 2% to up 2% over the prior year, with continued resilience in premium, loyalty and international partially offsetting domestic and main cabin softness. 2025 is playing out differently than we expected at the start of the year. As a result, we are adapting to current conditions while staying true to our long-term strategy."
Frontier Airlines also released an update, indicating a 5% growth in revenues and capacity in the first quarter, though revenue growth was lower than expected due to a subdued demand in March. The softer demand led to industry-wide fare discounts and promotions, "amplifying its issues" because of its dependency on close-in bookings. Consequently, the airline reduced capacity in the second quarter, focusing cuts on off-peak days.
