STORY: U.S. President Donald Trump's two-week ceasefire with Iran is unlikely to bring quick relief to the aviation industry...
according to industry executives on Wednesday.
That's even as airline shares surged on hopes the deal could ease the worst crisis carriers have faced in years.
Industry officials warned that jet fuel supplies will remain tight.
And costly for months after damage to refining capacity across the Middle East.
Delta Air Lines on Wednesday forecast lower-than-expected profit for the second quarter.
And said it would cut capacity to try to offset about $2 billion in extra fuel costs it expects to book.
Fuel, typically airlines' second-largest cost after labour, accounts for about 27% of operating expenses.
Jet fuel prices have more than doubled since the conflict erupted.
It far outpaced a roughly 50% rise in crude prices before the ceasefire.
Iran's closure of the Strait of Hormuz choked global fuel supplies, forcing airlines to hike fares, cut flights, add refuelling stops and carry extra fuel.
Safety concerns have seen carriers cancel services to and from the Gulf.
Oil fell below $100 per barrel after Trump said he had agreed to the two-week ceasefire with Iran, subject to the Strait's immediate and safe reopening.
Despite the turmoil, airline and travel stocks rallied on expectations the ceasefire could mark a turning point.
Tourism, however, also faces a long recovery.
TUI said two of its cruise ships, stranded in Abu Dhabi and Doha since the conflict began, would take at least four weeks to return to service once conditions allow.
