Delta Air Lines
) displayed healthier traffic in Jun 2013, due to better
international activities in Latin America and Atlantic.
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The company's airline traffic - measured in revenue passenger
miles or RPMs, which implies revenue generated per mile per
passenger - improved 0.7% year over year to 18.5 billion.
Consolidated capacity (or available seat miles/ASMs) for the
month moved up 1.4% from Jun 2012 to 21.1 billion.
The load factor or percentage of seats filled by passengers,
however, declined 60 basis points from the sixth month of 2012 to
87.5%. Passenger revenue per available seat mile (PRASM) improved
1.0% year over year, supported by higher contributions from
trans-Atlantic markets. The company registered a completion
factor of 99.6%, with nearly 76.0% of its flights on schedule.
For the first six months of 2013, Delta generated RPMs of 93.9
billion (unchanged from the corresponding period, last year) and
ASMs of 112.9 billion (down 0.8% year over year), while load
factor was 83.1%, up 60 basis points.
In Jun, Delta - the second largest airline company in the U.S.
United Continental Holdings Inc.
) - acquired the 49% stake in British carrier Virgin Atlantic
from Singapore Airlines, following the approvals of the U.S.
Department of Justice and European Commission.
This acquisition entitles Delta and Virgin Atlantic to have the
second major access to the New York-London travel route that is
largely controlled by a partnership of
) American Airlines and British Airways.
We believe that this transaction will help Delta to fortify its
position within the global aviation industry and come closer to
other international airline giants. The carrier will also be able
to serve its customers with an extended and well-connected
network interlinking prime locations at reasonable fares.
Delta operates with the likes of
Southwest Airlines Co.
) and carries a Zacks Rank #2 (Buy).