DL May RASM leads to quarterly RASM adjustment

[WorldTraveler]

too bad all you can do is cut and paste but I do like to see you engaging in business discussions and doing it in a civil manner. Congrats.

the rest of the story is worth citing since it contains more info on the upside as well as indications on how DL's guidance will indicate the health of the rest of the industry.







" The outlook for the airlines continues to improve as the industry started raising fares in the domestic market and while cutting capacity. We expect all the “bad news” in the shares to be reflected in the stocks after the June traffic releases. As investors look to 2H we expect airline shares to rise as oil prices have stabilized a bit in the $55 to $65/ barrel range, meaningfully lower than last year while managements make appropriate capacity reductions."


again, congrats on focusing on business issues in a constructive manner.

 

[700UW]

You complain about others, yet you throw out another dig.
 
You get what you deserve.

 

[WorldTraveler]

It was an acknowledgement for your pleasant discussion of business issues. Accept it for what it is.

It always means more if you add your personal commentary and analysis of the subject.... just as you do on labor related subjects.

 

[700UW]

http://finance.yahoo.com/news/delta-reports-financial-operating-performance-130000440.html
 

Consolidated passenger unit revenue (PRASM) for the month of June decreased 4.5 percent year over year, driven by foreign exchange pressure and lower surcharges in international markets, as well as domestic yields that have softened in select markets.
 

 

[WorldTraveler]

glad you posted that.... since DL has been seen as the harbinger of how the legacy airlines would report, the int'l part likely will be seen with AA and UA.

It also makes it harder for the DOJ to argue that carriers are colluding to force up fares. Even with DL's statement "select markets" it is clear that there is yield weakness in the domestic arena.

US airline stocks are flat to up slightly this a.m. after AS and DL's traffic reports perhaps correcting for the selloff yesterday in light of the DOJ's announcement or because analysts have already factored in yield and RASM weakness for US airlines for the 2nd quarter.