Leading passenger and cargo carrier
Delta Air Lines
) reported growth in traffic for Jul 2013 on strong contributions
from Latin America and Atlantic regions.
DELTA AIR LINES (DAL): Free Stock Analysis
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The company's airline traffic - measured in revenue passenger
miles or RPMs, which implies revenue generated per mile per
passenger - moved up 1.7% year over year to 19.4 billion.
Consolidated capacity (or available seat miles/ASMs) for the
month increased 2.7% from Jul 2012 to 22.3 billion.
The load factor or percentage of seats filled by passengers,
however, declined 80 basis points from the seventh month of 2012
to 87.0%. Passenger revenue per available seat mile (PRASM)
improved 3.0% year over year, aided by the well-performing
trans-Atlantic markets. The company registered a completion
factor of 99.5%, with nearly 74.5% of its flights on schedule.
For the first seven months of 2013, Delta generated RPMs of 113.3
billion (up 0.3% from the corresponding period, last year) and
ASMs of 135.2 billion (down 0.2% year over year), while load
factor was 83.8%, up 40 basis points.
On Jul 24, Delta - the second largest airline company in the U.S.
United Continental Holdings Inc.
) - reported second-quarter 2013 adjusted earnings of 98 cents,
surpassing the Zacks Consensus Estimate of 95 cents. The results
also improved considerably from the year-ago adjusted earnings of
69 cents. The company's performance was buoyed by strong sales
along with operational efficiency and growing demand.
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, revamping of fleet
structures and profitable acquisitions. Recently, Delta revealed
plans to expand its services by launching nonstop seasonal
flights to Aspen, Colo. Apart from daily services from Atlanta,
there will also be flights every Saturday from Minneapolis-St.
Delta operates with the likes of
Southwest Airlines Co.
JetBlue Airways Corp.
) and carries a Zacks Rank #3 (Hold).