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Delta Reports Record April Load Factors  
User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4749 posts, RR: 44
Posted (7 years 4 months 2 weeks 4 days 13 hours ago) and read 3770 times:

Quote:
ATLANTA, May 2, 2007 (PRIME NEWSWIRE) -- Delta Air Lines today reported a record April consolidated system load factor of 81.5 percent, record mainline system load factor of 82.0 percent, record total domestic load factor of 82.8 percent, record mainline domestic load factor of 84.0 percent and record regional load factor of 78.6 percent.

More available at: http://biz.yahoo.com/pz/070502/118773.html

[Edited 2007-05-03 22:24:29]

[Edited 2007-05-03 22:24:46]


Some see lines, others see between the lines.
27 replies: All unread, showing first 25:
 
User currently offlineOOer From United States of America, joined Oct 2005, 1466 posts, RR: 2
Reply 1, posted (7 years 4 months 2 weeks 4 days 11 hours ago) and read 3663 times:

The $$$$$ are coming to ATL!!!!!

User currently offlineNW7E7 From United States of America, joined Jun 2004, 534 posts, RR: 4
Reply 2, posted (7 years 4 months 2 weeks 4 days 11 hours ago) and read 3631 times:

This is great news for DL! Glad to see them doing so well. Now if they only had a better liv....oh nevermind.  ziplip 

User currently offlineLASOctoberB6 From Japan, joined Nov 2006, 2380 posts, RR: 1
Reply 3, posted (7 years 4 months 2 weeks 4 days 11 hours ago) and read 3624 times:

Quoting NW7E7 (Reply 2):
Now if they only had a better liv....oh nevermind. ziplip

..ery  Wink



[NOT IN SERVICE] {WEStJet}
User currently offlineDeltaAVL From United States of America, joined Mar 2007, 1893 posts, RR: 6
Reply 4, posted (7 years 4 months 2 weeks 4 days 10 hours ago) and read 3567 times:

Wow, very good news for Delta!

Does anyone know what the average profit-per-passenger is?



"We break, We bend, With hand in hand, When hope is gone, Just hang on." -Guster
User currently offlineDelta787 From United States of America, joined May 2006, 321 posts, RR: 0
Reply 5, posted (7 years 4 months 2 weeks 4 days 9 hours ago) and read 3506 times:

Fantastic news for Delta. Hopefully more good news continues to flow out of Atlanta.


Fly Delta!
User currently offlineDeltaL1011man From United States of America, joined Sep 2005, 9418 posts, RR: 14
Reply 6, posted (7 years 4 months 2 weeks 4 days 8 hours ago) and read 3449 times:

Great job Delta

now lets hear those 737 T7 and 787 orders!!!!



yep.
User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 7, posted (7 years 4 months 2 weeks 4 days 1 hour ago) and read 3335 times:

Don't get too exited. Sure the high loadfactors are great, but they don't say anything about profits, so stay calm with the orders  Wink .

User currently offlineAirbazar From United States of America, joined Sep 2003, 8368 posts, RR: 10
Reply 8, posted (7 years 4 months 2 weeks 3 days 21 hours ago) and read 3256 times:

Gee what a surprise. Everyone is seeing higher load factors. That's usually what happens when you cut seats at a time when demand is at an all time high.

User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4749 posts, RR: 44
Reply 9, posted (7 years 4 months 2 weeks 3 days 20 hours ago) and read 3199 times:

Quoting Airbazar (Reply 8):
Gee what a surprise. Everyone is seeing higher load factors. That's usually what happens when you cut seats at a time when demand is at an all time high.


actually some airlines are posting decreases in load factors.

[Edited 2007-05-04 16:03:45]


Some see lines, others see between the lines.
User currently offlineDeltadude From United States of America, joined Sep 2004, 134 posts, RR: 0
Reply 10, posted (7 years 4 months 2 weeks 3 days 17 hours ago) and read 3123 times:

This is exactly why those of us towards the bottom of the "non-rev" ladder have to buy tickets these days. I'm glad DL is making money though!

User currently offlineOOer From United States of America, joined Oct 2005, 1466 posts, RR: 2
Reply 11, posted (7 years 4 months 2 weeks 3 days 17 hours ago) and read 3108 times:

Quoting Alitalia744 (Reply 9):
actually some airlines are posting decreases in load factors.

Can anyone say WN???? Come on say it with me....S O U T H W O R S T....


User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 12, posted (7 years 4 months 2 weeks 3 days 12 hours ago) and read 3018 times:

DL's financials from the 1st quarter also show that DL's RASM is increasing faster than the industry. Given that DL is pulling seats out of domestic at a faster rate than other airlines - and redeploying them to int'l routes - DL's RASM growth will likely continue to outperform the industry. DL's domestic system is the backbone of DL's profitability. And while alot of people asserted that DL's int'l expansion would drive down int'l RASM, it is actually growing. DL is deploying its assets where they can generate more revenue and are improving their entire system in the process.

DL has a long lineup of new domestic and int'l routes waiting in the wings.


User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4749 posts, RR: 44
Reply 13, posted (7 years 4 months 2 weeks 3 days 11 hours ago) and read 3003 times:

Quoting WorldTraveler (Reply 12):
DL has a long lineup of new domestic and int'l routes waiting in the wings.

And the int'l ones look nice at that.

By the way welcome back.



Some see lines, others see between the lines.
User currently offlinePanamair From United States of America, joined Oct 2001, 4910 posts, RR: 25
Reply 14, posted (7 years 4 months 2 weeks 3 days 2 hours ago) and read 2903 times:
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Quoting WorldTraveler (Reply 12):
DL's RASM growth will likely continue to outperform the industry. DL's domestic system is the backbone of DL's profitability. And while alot of people asserted that DL's int'l expansion would drive down int'l RASM, it is actually growing.

Many of the international routes introduced last spring/summer are beginning to contribute positively now - an example mentioned by Hauenstein for April was ATL-DUS which was one of the first new transatlantic routes introduced last year (April 2006) and hence was the first one now to have an effective Y-O-Y comparison; unit revenue Apr 06 vs Apr 07 increased by more than 40%.

These international routes usually take about 12 months to mature though there are exceptions like ATL-TLV and JFK-BOM, both of which were pretty much profitable from Day One.


User currently offlineRwSEA From Netherlands, joined Jan 2005, 3104 posts, RR: 2
Reply 15, posted (7 years 4 months 2 weeks 3 days 1 hour ago) and read 2898 times:

Quoting Panamair (Reply 14):
Many of the international routes introduced last spring/summer are beginning to contribute positively now - an example mentioned by Hauenstein for April was ATL-DUS which was one of the first new transatlantic routes introduced last year (April 2006) and hence was the first one now to have an effective Y-O-Y comparison; unit revenue Apr 06 vs Apr 07 increased by more than 40%.

How are some of the other routes doing? I'm especially interested in ATL-EDI (many thought this would fail), and ATL-JNB-DKR (curious how loads/yields are on this route).


User currently offlineDAL767400ER From , joined Dec 1969, posts, RR:
Reply 16, posted (7 years 4 months 2 weeks 2 days 14 hours ago) and read 2825 times:

Quoting RwSEA (Reply 15):
How are some of the other routes doing? I'm especially interested in ATL-EDI (many thought this would fail), and ATL-JNB-DKR (curious how loads/yields are on this route).

Well, they surely are all doing better than ATL-NCE  Silly . Though of course, only having one real "dog" out of all the European destinations DL has launched in recent years sure speaks for their route management.


User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 17, posted (7 years 4 months 2 weeks 2 days 14 hours ago) and read 2797 times:

Quoting Panamair (Reply 14):
These international routes usually take about 12 months to mature though there are exceptions like ATL-TLV and JFK-BOM, both of which were pretty much profitable from Day One.

goes to show how much potential these markets have for add'l service if they are profitable within a few months. JFKTLV seems like a natural but so does about a half dozen routes to India from JFK, ATL, and even LAX.


User currently offlineGkirk From UK - Scotland, joined Jun 2000, 24936 posts, RR: 56
Reply 18, posted (7 years 4 months 2 weeks 2 days 14 hours ago) and read 2788 times:

Quoting RwSEA (Reply 15):
I'm especially interested in ATL-EDI

Improving as summer approaches. Apparently February was a pathetic month with average loads of around 42%



When you hear the noise of the Tartan Army Boys, we'll be coming down the road!
User currently offlineEvan767 From United States of America, joined Aug 2005, 2957 posts, RR: 2
Reply 19, posted (7 years 4 months 2 weeks 2 days 14 hours ago) and read 2786 times:

Quoting Alitalia744 (Reply 13):
And the int'l ones look nice at that.

Alitalia744, I am just going to flat out ask you. How do you know that? Where do you get your information? You ALWAYS know when a new route is about to be announced. You ALWAYS know about plane orders. You knew all about the new livery and re-branding way before any of us did. What is your source? Are you Jerry Grinstein himself? Seems like it.

Anyway, on forbes.com I read Jerry Grinstein says he will bring back complimentary meals on all flights over 1750 miles in coach. As well as one free alcoholic drink with each meal. Can anyone confirm this?
http://www.forbes.com/free_forbes/2007/0521/044.html?partner=yahoomag

It's in one of the middle paragraphs.



The proper term is "on final" not "on finals" bud...
User currently offlineAirlineAV8tor From United States of America, joined Nov 2004, 10 posts, RR: 0
Reply 20, posted (7 years 4 months 2 weeks 2 days 14 hours ago) and read 2763 times:

When you cut flights, loads go up! : ) Besides that, they seem to be following in CO's footsteps by overbooking too.

User currently offlineLipeGIG From Brazil, joined May 2005, 11438 posts, RR: 58
Reply 21, posted (7 years 4 months 2 weeks 2 days 10 hours ago) and read 2699 times:
AIRLINERS.NET CREW
FORUM MODERATOR

I should include flights to Brazil on the list of good performance (except for the new service JFK-GRU). The data from DOT on Oct 2006 (last available month) shows a huge operation in terms of cargo and pax:

GIG-ATL - 4,864 pax - 606,8 ton/cargo - average 160 pax/daily or closer to 80%
GRU-ATL - 5,216 pax - 469,9 ton/cargo - average 170 pax/daily or closer to 85%
GRU-JFK - 3,623 pax - 293,3 ton/cargo - average 120 pax/daily or closer to 60%

Last month i flew LGA-ATL-LGA 2x and LGA-ATL-GIG 2x and all flights were packed !

Felipe



New York + Rio de Janeiro = One of the best combinations !
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 22, posted (7 years 4 months 2 weeks 2 days 7 hours ago) and read 2630 times:

Quoting AirlineAV8tor (Reply 20):
When you cut flights, loads go up! : )

except that DL is adding - not cutting - capacity on their int'l system and their int'l performance is as strong as their domestic system.

whether the ATL-EDI results quoted above are true or not is not know but Feb is pretty well the dead of winter to Europe. DL also has some sort of marketing support for this route so whatever they receive in support offsets what they might not be getting in revenue.

as Lipe shows w/ just one example, DL is deploying its aircraft on routes around the world that are delivering strong results. other airlines simply do not have the growth capacity on int'l routes that DL has and it is allowing DL to move into markets where they will have a strong and lasting advantage.

you'll see by the next round of routes where DL is doing well.


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6608 posts, RR: 24
Reply 23, posted (7 years 4 months 2 weeks 2 days 5 hours ago) and read 2593 times:

Quoting WorldTraveler (Reply 22):
except that DL is adding - not cutting - capacity on their int'l system and their int'l performance is as strong as their domestic system.

Not judging by the numbers that were posted at the start of this thread. The record LF's that DL is reporting are being driven solely by domestic contraction. International LF's were flat compared to last year.


User currently offlineCODC10 From United States of America, joined Jul 2000, 2412 posts, RR: 6
Reply 24, posted (7 years 4 months 2 weeks 2 days 3 hours ago) and read 2554 times:

Quoting AirlineAV8tor (Reply 20):
When you cut flights, loads go up! : ) Besides that, they seem to be following in CO's footsteps by overbooking too.

CO overbooks, as any airline does, and is a practice especially evident in an environment where 80%+ load factors are a rule rather than an exception.

The difference is CO is growing domestic ASMs yoy (5.8%), and achieving commensurate RPM growth (5.3%), whereas DL is cutting domestic ASMs (7.3%) and seeing a slight RPM deficiency of .6%. Two cases in which capacity is being matched to demand...CO sees a need to expand in markets to increase unit profitability, DL is doing the same by shrinking. CO's monthly load factor goes down while domestic revenue increases, DL's load factor rises while domestic revenue goes south. Simple math.

The truth is, more people are flying. The industry is seeing overall 3-5% growth in passengers boarded, and CO and DL's numbers reflect this progress.

Of note is that Continental needs to add domestic capacity because demand is very strong, and their network is very lean in the first place, with minimal overcapacity. CO's 2006 April domestic LF was 85.9%, while 2007 was 85.5%, even still, borderline inefficient and reflective of a need to grow capacity. YTD growth vs. 2006 is essentially flat, indicative of that given the ASM increase. By contrast, DL posted 77.2% load factors in 2006 and 82.8 for 2007 domestic. Given a hypothetical domestic breakeven LF of 80%, which is fairly realistic in this day and age, this becomes another smart move for Delta.

Quoting WorldTraveler (Reply 22):

except that DL is adding - not cutting - capacity on their int'l system and their int'l performance is as strong as their domestic system.

I have to hand it to you, that's excellent spin, but I think you are wrong on your assessment that DL's international performance is as strong as their domestic results.

Delta grew their international network a whopping 17.1% yoy, but was exceeded by a 17.3% RPM increase. YTD numbers are even more impressive...23.7% RPM growth on 22.0% ASM increase. Pacific numbers are divergent, but this reflects DL's lack of suitable equipment for a more extensive network.

To me, WorldTraveler, Delta's International performance is blowing Domestic out of the water right now, it is WAY stronger! True, the domestic market generates a greater portion of Delta's revenues, but margins are better internationally, and DL is just following the money. International expansion is proving to be a very wise decision.


25 Panamair : I suspect that if you look at the profit numbers however, Domestic is the one that has been contributing the most to the bottom line, as shown by som
26 CODC10 : International breakeven LF is usually lower than domestic due to higher yield, driven primarily by the presence of an international premium product, a
27 WorldTraveler : based on 4Q06 DOT data, DL's domestic is considerably more profitable than its Latin or European systems. There are alot of startup costs involved in
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