Leading passenger and cargo carrier
Delta Air Lines Inc.
) reported growth in traffic for Feb 2014 on the back of strong
domestic demand and gains in the trans-Atlantic joint venture.
Passenger revenue per available seat mile (PRASM) improved 4.0%
year over year. As a result of winter storms, Delta had to cancel
8,000 flights during the month that contributed a 0.5% increase
The company's airline traffic - measured in revenue passenger
miles or RPMs, which imply revenue generated per mile per
passenger - moved up 2.4% year over year to 12.99 billion.
Consolidated capacity (or available seat miles/ASMs) for the
month, decreased 0.3% from Feb 2013 to 16.00 billion.
The load factor or percentage of seats filled by passengers
leaped 210 basis points from Feb 2013 to 81.2%. The company
registered a completion factor of 99.5%, with nearly 77.5% of
flights on schedule.
For the first two months of 2014, Delta generated RPMs of
27.48 billion (up 3.3% from the corresponding period last year)
and ASMs of 33.84 billion (up 0.8% year over year). The load
factor improved 200 basis points year over year to 81.2%.
In 2014, Delta is expected to generate higher revenues from
last year on a strong domestic market, capacity discipline, cost
control measures and customer-focused initiatives, thus enhancing
Further, the company's joint venture with Virgin Atlantic
Airways has already started and is expected to augment Delta's
presence in the top 10 U.S. to Europe destinations and will
represent 25% of the seats between U.S. and Heathrow travel
However, the mega merger between American Airlines and U.S.
Airways Group to form
American Airlines Group Inc.
) remains a major competitive threat to the company in both
domestic and international markets.
Delta carries a Zacks Rank #3 (Hold). Better-ranked stocks
within the industry include
Southwest Airlines Co.
JetBlue Airways Corp.
). LUV carries a Zacks Rank #1 (Strong Buy), while JBLU carries a
Zacks Rank #2 (Buy).
AMER AIRLINES (AAL): Free Stock Analysis
DELTA AIR LINES (DAL): Free Stock Analysis
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
SOUTHWEST AIR (LUV): Free Stock Analysis
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