Leading U.S. passenger carrier
Delta Air Lines
) displayed flat traffic growth for Jan 2013, based on higher
corporate revenue, efficient operations in the Transatlantic
region and better capacity optimization, partially offset by weak
DELTA AIR LINES (DAL): Free Stock Analysis
JETBLUE AIRWAYS (JBLU): Free Stock Analysis
TUMI HLDGS INC (TUMI): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
To read this article on Zacks.com click here.
The company's airline traffic - measured in revenue passenger
miles or RPMs, which implies revenue generated per mile per
passenger - remained flat year over year at 13.9 billion.
Consolidated capacity (or available seat miles/ASMs) for the
month dropped 2.4% from Jan 2012 to 17.5 billion.
The load factor or percentage of seats filled by passengers,
however, went up 190 basis points from the first month of 2012 to
79.4%. Passenger revenue per available seat mile (PRASM) also
improved 5.5% year over year. The company registered completion
factor of 99.5%, with nearly 87.4% of the flights on schedule.
Delta - the second largest airline company in U.S. after
United Continental Holdings Inc.
) - recently posted fourth-quarter 2012 adjusted earnings of 28
cents, in line with the Zacks Consensus Estimate. Revenue,
however, fell marginally short of our projection.
For 2013, we expect Delta to post revenue and earnings growth
aided by various strategic actions that include re-organization
of fleet, introduction of attractive services, capturing of new
markets and profitable takeovers.
The company is collaborating with top brands like Malin+Goetz and
Tumi Holdings Inc.
) to offer travel luxuries to BusinessElite passengers. With the
thought of providing a comfortable lounge experience to flyers,
Delta Air Lines has joined hands with an international design
group - Architectural Digest - to upgrade outdoor terraces. These
first-ever open-air airport patios, called The Sky Deck, will be
set up at the Atlanta and New York terminals.
We believe that these innovative and attractive initiatives along
with enhanced service offerings will position the company in an
advantageous position compared to other industry players such as
JetBlue Airways Corp.
Delta currently holds a Zacks Rank #3, implying a Hold