- Dec 5, 2003
- 21,709
- 10,721
Few airline employees or fans - maybe a few analysts - look at airline traffic reports with much detail but DL's latest report just released today reveals a number of strategic issues which will mark the next few years for DL in the coming years.
http://finance.yahoo.com/news/delta-reports-financial-operating-performance-130300404.html
First, DL's system traffic is up slightly for the month while being flat in the year to date... DL is taking advantage of the summer season to fly more when air fares justify doing so, particularly necessary because capacity is being kept in check to keep load factors up even in the offpeak months. After months of reducing TATL capacity, DL is returning to the same capacity to Europe as last year.
Second, DL continues to shift flying from regional carriers to Delta mainline. DL's mainline capacity growth is positive while it shrinks for regional carriers.
Third, DL's statement that its relatively weak 0.5% RASM growth was offset by one point that is due to devaluation of the Japanese yen shows that the future of DL's Pacific operation - heavily focused on Japan - will face further reductions as the cost to Japanese to travel outside of their country increases. In fact, DL is reducing capacity to some of the Japanese beach markets and DL's transpacific capacity was down, the only region for that to have occurred.
DL's system load factor esp. to Latin America continues to be pushed up as DL is better able to sell whatever seats it places in the market.
Finally, DL's completion factor at 99.9% will remain unbeaten in the industry with the result that DL's increased reliability will translate into increased preference for DL by travelers.
http://finance.yahoo.com/news/delta-reports-financial-operating-performance-130300404.html
First, DL's system traffic is up slightly for the month while being flat in the year to date... DL is taking advantage of the summer season to fly more when air fares justify doing so, particularly necessary because capacity is being kept in check to keep load factors up even in the offpeak months. After months of reducing TATL capacity, DL is returning to the same capacity to Europe as last year.
Second, DL continues to shift flying from regional carriers to Delta mainline. DL's mainline capacity growth is positive while it shrinks for regional carriers.
Third, DL's statement that its relatively weak 0.5% RASM growth was offset by one point that is due to devaluation of the Japanese yen shows that the future of DL's Pacific operation - heavily focused on Japan - will face further reductions as the cost to Japanese to travel outside of their country increases. In fact, DL is reducing capacity to some of the Japanese beach markets and DL's transpacific capacity was down, the only region for that to have occurred.
DL's system load factor esp. to Latin America continues to be pushed up as DL is better able to sell whatever seats it places in the market.
Finally, DL's completion factor at 99.9% will remain unbeaten in the industry with the result that DL's increased reliability will translate into increased preference for DL by travelers.
