Leading U.S. passenger carrier
Delta Air Lines
) posted weak traffic for Feb 2013, due to lackluster performance
in the regional arena.
The company's airline traffic - measured in revenue passenger
miles or RPMs, which implies revenue generated per mile per
passenger - dropped 2.2% year over year to 12.7 billion.
Consolidated capacity (or available seat miles/ASMs) for the
month fell 5.0% from Feb 2012 to 16.1 billion.
The load factor or percentage of seats filled by passengers,
however, went up 220 basis points from the second month of 2012
to 79.1%. Passenger revenue per available seat mile (PRASM) also
improved 5.0% year over year, supported by higher corporate
revenue and efficient operations in the Transatlantic region. The
company registered a completion factor of 99.0%, with nearly
86.1% of the flights on schedule.
For the first two months of 2013, Delta generated RPMs of 26.6
billion (down 1.1% year over year) and ASMs of 33.6 billion (down
3.6% year over year), while load factor was 79.2%, up 200 basis
Delta - the second largest airline company in the U.S. after
United Continental Holdings Inc.
) - is in constant endeavor to improve operating efficiencies and
customer experience. Recently, the company revealed plans to
operate summer flights from Montana to Atlanta and Los Angeles,
from Jun 22.
With a fleet of over 700 aircraft, Delta is concentrating on
stepping into various domestic as well as international spots.
The company, currently, serves 19 destinations in 59 countries
across six continents.
In the coming quarters, we expect Delta to post revenue and
earnings growth aided by various strategic actions that include
optimization of fleet, capacity discipline, capturing of new
markets and profitable takeovers. These innovative and attractive
initiatives along with enhanced service offerings will position
the company advantageously compared to other industry players
JetBlue Airways Corp.
Delta - which collaborated with top brands like Malin+Goetz and
Tumi Holdings Inc.
) to offer travel luxuries to BusinessElite flyers - carries a
Zacks Rank #2, implying a Buy rating.
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
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