How Did Delta Perform Operationally In October?
The third quarter results for Delta and its investors were quite disappointing, given a 6% y-o-y drop in revenues and a -7% decline in unit revenues. This was in part attributable to a one-time technology outage episode, and in part to the continued supply-demand imbalances plaguing the industry as a whole. In the month of October 2016, the trend was seen to persist with Delta’s unit revenues down -6.5%. Of the decline seen, 2 percentage points is accountable to the timings of the holiday period.
Talking about the capacity, Delta’s available seat miles increased by 0.5% internationally, and 2..5% domestically, bringing the consolidated capacity up by 1.7% y-o-y. Year-to-date, the capacity was up 2.4% y-o-y. If the company is to meet its guidance of 1%-2% growth in full year capacity, it will have to curtail the growth going forward. Further, passenger traffic was down 0.3%, reflecting superfluous capacity in the system. This point is further reinforced by the deterioration of almost 2 percentage points in October load factor.
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Have more questions about Delta Air Lines (NYSE:DAL)? See the links below:
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