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Delta (DAL) Posts Increase in August Traffic and Load Factor


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Delta Air Lines, Inc. DAL delivered impressive traffic figures for August. Consolidated traffic, measured in revenue passenger miles (RPMs) came in at 22.4 billion, up 3.6% year over year.

Consolidated capacity (or available seat miles/ASMs) expanded 3.5% to 25.5 billion on a year-over-year basis. Consolidated load factor (percentage of seats filled by passengers) increased 10 basis points to 88%, as traffic growth outpaced capacity expansion.

Strong demand for air travel led to increase in load factor. In fact, this Atlanta, GA-based carrier transported 18.3 million passengers in the month, up 4% on a year-over-year basis. Additionally, the carrier recorded an on-time performance (mainline) of 83.3% and completion factor (mainline) of 99.8% for August.

At the end of the first eight months of 2018, Delta generated RPMs of 153.7 billion (up 3.2% year over year) and ASMs of 178.9 billion (up 3.2% year over year). Load factor remained unchanged at 85.9% on a year-over-year basis.

However, the Delta stock lost 2.8% of its value on Sep 5 in spite of posting impressive traffic numbers. We believe that the decision of the carrier to not increase third-quarter earnings per share (EPS) guidance despite robust demand for air travel led to the decline in stock price.

Delta Air Lines, Inc. Price

Delta Air Lines, Inc. Price | Delta Air Lines, Inc. Quote

At the Cowen and Company 11th Annual Global Transportation Conference, this airline behemoth stated that it still expects third-quarter EPS between $1.65 and $1.85. The Zacks Consensus Estimate for current-quarter earnings is currently at $1.77, well within the guidance.

Zacks Rank & Key Picks

Delta carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader Transportation Sector are CSX Corp. CSX , Norfolk Southern Corp. NSC and Old Dominion Freight Line, Inc. ODFL . While Old Dominion carries a Zacks Rank #2 (Buy), CSX and Norfolk Southern sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Shares of CSX, Norfolk Southern and Old Dominion have gained 32.1%, 24.3% and 11.8% in the past six months, respectively.

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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report

Norfolk Southern Corporation (NSC): Free Stock Analysis Report

CSX Corporation (CSX): Free Stock Analysis Report

Old Dominion Freight Line, Inc. (ODFL): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: DAL , NSC , CSX , ODFL



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