How Did Delta Perform Operationally In November?
The third quarter results for Delta Air Lines ( DAL ) and its investors were quite disappointing, given a 6% y-o-y drop in revenues and a -7% decline in unit revenues. This was in part attributable to a one-time technology outage episode, and in part to the continued supply-demand imbalances plaguing the industry as a whole. In the month of October 2016, the trend was seen to persist with Delta's unit revenues down -6.5%. Of the decline seen, 2 percentage points is accountable to the timings of the holiday period.
However, in November the legacy carrier managed to pull off somewhat of a turnaround, with unit revenues down only -1% y-o-y. We can partially account for the stabilization in the decline of unit revenues to positive yields in Latin America and the upcoming holiday season bookings. Talking about the capacity, Delta's available seat miles decreased by -6.0% internationally, and rose 2.3% domestically, bringing the consolidated capacity down by -0.7% y-o-y. Year-to-date, the capacity was up 2.1% y-o-y, in line with its full year capacity guidance of 1%-2%. Further, passenger traffic rose only slightly (0.3%), mainly due to the the declines seen internationally. This reflects superfluous capacity on the international routes for the airline. However, occupancy rate (+0.9%) and the number of passengers boarded (2.1%) were both seen improving in the month, indicating that the airline is on the right path.
Have more questions about Delta Air Lines ( DAL )? See the links below:
- How Did Delta Perform Operationally In October?
- How Has Delta Managed Its Capacity In The Face Of Rising Competition & Increasing Pressure On Unit Revenues?
- Delta Q3'16 Earnings Review: Continued Headwinds In Unit Revenues, Despite Reduction In Capacity
- Delta Q3'16 Earnings Preview: Technology Outage Episode, Headwinds In Trans-Atlantic Region To Be A Drag
- How Did Delta Perform Operationally In September?
- Delta's Pending Pilot Contract To Sabotage Southwest's Recently Approved Labor Agreement
- How Did Delta Perform Operationally In August?
- What Is The Impact Of Flight Delays?
- Delta Versus JetBlue: Expansion Into Boston And Its Effect On Unit Revenues
- How Will Delta Air Lines Utilize Its Cash Flows?
- Delta Airlines Re-Fleeting Program: How Will It Help?
- Why Has Trefis Lowered Delta's Price Estimate From $51 To $44 Per Share?
- Delta Q2'16 Earnings Preview: Rising Oil Prices, Lower Unit Revenues May Drag Down Revenues
- Delta Continues To Face Headwinds In Revenues, But Delivers On Earnings Growth in Q2'16
- Delta's Profits Continue To Surge As Crude Oil Prices Remain Low In 1Q'16
- How Did The Legacy Carriers Perform Operationally In January?
- Why Did Delta's Operating Margin Soar In 2015?
- How Will Delta's Revenue And EBITDA Grow Between 2015 and 2018?