Leading passenger and cargo carrier
Delta Air Lines
) reported growth in traffic for Aug 2013 on strong contributions
from domestic, Latin America and Atlantic regions.
The company's airline traffic - measured in revenue passenger
miles or RPMs, which imply revenue generated per mile per
passenger - moved up 2.7% year over year to 19.4 billion.
Consolidated capacity (or available seat miles/ASMs) for the
month, increased 3.3% from Aug 2012 to 22.3 billion.
The load factor or percentage of seats filled by passengers,
however, declined 50 basis points from the eighth month of 2012
to 87.3%. Passenger revenue per available seat mile (PRASM)
improved 4.0% year over year, aided by solid performance in
domestic, trans-Atlantic and Latin American markets. The company
registered a completion factor of 99.9%, with nearly 85.0% of its
flights on schedule.
For the first eight months of 2013, Delta generated RPMs of
132.7 billion (up 0.6% from the corresponding month last year)
and ASMs of 157.5 billion (up 0.3% year over year), while load
factor was 84.3%, up 30 basis points.
Recently, Delta announced its plan to purchase 40 new jets
from Airbus in a deal worth $5.6 billion to upgrade its fleet.
Delta has ordered 10 A330-300 wide body jets and 30 narrow body
A321 aircraft to be delivered between 2015 and 2017.
Delta also revealed plans to expand its services in South East
Asia by launching nonstop flights from Seattle to Seoul and Hong
Kong. Apart from new route launches, Delta and leading Latin
GOL Linhas Aereas Inteligentes S.A.
) have attained their immediate goal of expanded the code sharing
thus providing increased benefits to their loyal customer
We expect the company to be well positioned over the coming
months owing to various strategic initiatives such as route
launches, renovation of airport terminals and upgrading of fleet
Delta, reported mixed financial results for second-quarter
2013. Adjusted earnings of 98 cents surpassed the Zacks Consensus
Estimate of 95 cents while revenues of $9.70 billion fell short
of the Zacks Consensus Estimate of $9.83 billion.
Delta operates with the likes of
United Continental Holdings Inc.
JetBlue Airways Corp.
), and carries a Zacks Rank #3 (Hold).
DELTA AIR LINES (DAL): Free Stock Analysis
GOL LINHAS-ADR (GOL): Free Stock Analysis
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
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