Alitalia744
Topic Author
Posts: 3777
Joined: Thu Mar 30, 2000 8:22 am

Delta Reports Record April Load Factors

Fri May 04, 2007 5:24 am

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.
 
OOer
Posts: 920
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 7:27 am

The $$$$$ are coming to ATL!!!!!
 
NW7E7
Posts: 479
Joined: Sun Jun 20, 2004 11:43 am

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 7:47 am

This is great news for DL! Glad to see them doing so well. Now if they only had a better liv....oh nevermind.  ziplip 
 
LASoctoberB6
Posts: 1936
Joined: Thu Nov 09, 2006 4:23 pm

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 7:51 am

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

..ery  Wink
[NOT IN SERVICE] {WEStJet}
 
DeltaAVL
Posts: 1525
Joined: Wed Mar 21, 2007 10:15 pm

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 8:27 am

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
 
Delta787
Posts: 306
Joined: Mon May 01, 2006 8:13 am

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 9:21 am

Fantastic news for Delta. Hopefully more good news continues to flow out of Atlanta.
Fly Delta!
 
deltal1011man
Posts: 4541
Joined: Mon Sep 19, 2005 9:17 am

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 10:24 am

Great job Delta

now lets hear those 737 T7 and 787 orders!!!!
New airliners.net web site sucks.
 
DAL767400ER
Posts: 5084
Joined: Wed Feb 09, 2005 2:47 am

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 6:00 pm

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 .
 
airbazar
Posts: 6802
Joined: Wed Sep 10, 2003 11:12 pm

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 9:43 pm

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.
 
Alitalia744
Topic Author
Posts: 3777
Joined: Thu Mar 30, 2000 8:22 am

RE: Delta Reports Record April Load Factors

Fri May 04, 2007 10:58 pm

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.
 
deltadude
Posts: 116
Joined: Wed Sep 08, 2004 11:53 pm

RE: Delta Reports Record April Load Factors

Sat May 05, 2007 1:20 am

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!
 
OOer
Posts: 920
Joined: Thu Oct 13, 2005 2:10 pm

RE: Delta Reports Record April Load Factors

Sat May 05, 2007 1:31 am

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....
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Delta Reports Record April Load Factors

Sat May 05, 2007 6:42 am

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.
 
Alitalia744
Topic Author
Posts: 3777
Joined: Thu Mar 30, 2000 8:22 am

RE: Delta Reports Record April Load Factors

Sat May 05, 2007 7:23 am

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.
 
panamair
Posts: 3759
Joined: Fri Oct 12, 2001 2:24 am

RE: Delta Reports Record April Load Factors

Sat May 05, 2007 4:51 pm

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.
 
rwsea
Posts: 2422
Joined: Sun Jan 30, 2005 2:23 pm

RE: Delta Reports Record April Load Factors

Sat May 05, 2007 5:09 pm

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).
 
DAL767400ER
Posts: 5084
Joined: Wed Feb 09, 2005 2:47 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 4:10 am

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.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 4:31 am

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.
 
gkirk
Posts: 23345
Joined: Thu Jun 15, 2000 3:29 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 4:35 am

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!
 
Evan767
Posts: 2198
Joined: Wed Aug 24, 2005 10:52 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 4:36 am

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...
 
AirlineAV8tor
Posts: 10
Joined: Thu Nov 18, 2004 10:52 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 4:48 am

When you cut flights, loads go up! : ) Besides that, they seem to be following in CO's footsteps by overbooking too.
 
LipeGIG
Posts: 5048
Joined: Tue May 03, 2005 7:33 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 8:45 am

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 !
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 12:01 pm

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.
 
FlyPNS1
Posts: 5258
Joined: Wed Dec 01, 1999 7:12 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 1:20 pm

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.
 
codc10
Posts: 1750
Joined: Sat Jul 08, 2000 7:18 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 4:01 pm

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.
 
panamair
Posts: 3759
Joined: Fri Oct 12, 2001 2:24 am

RE: Delta Reports Record April Load Factors

Sun May 06, 2007 6:05 pm

Quoting CODC10 (Reply 24):
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.

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 some of the numbers in 2006. The international focus has only started recently, and as mentioned, takes longer to mature (normal expectations are 9-12 months) hence International's contribution to the profit pie is still in flux. That being said, it's still good news that DL has been able to maintain and even slightly increase international LFs despite massive increases in capacity (anytime one increases ASMs by double-digit percentages, the tendency is for RPMs not to catch up as quickly, hence resulting in LF drops).

A simple way to look at this is with the Q1 (Jan-Mar) 2007 numbers:

Consolidated System-wide load factor: 77.1%
Consolidated Domestic load factor: 77.7%
Consolidated Int'l Load factor: 75.8%
Systemwide Breakeven Passenger Load factor: 73.9%

Also note that breakeven LF for international should generally be higher than for domestic and hence for Q1, int'l breakeven should be above the ave. of 73.9%.
 
codc10
Posts: 1750
Joined: Sat Jul 08, 2000 7:18 am

RE: Delta Reports Record April Load Factors

Mon May 07, 2007 1:38 am

International breakeven LF is usually lower than domestic due to higher yield, driven primarily by the presence of an international premium product, and fluctuate greatly from season to season. In Delta's case, this is probably equalized somewhat by the one-time startup costs associated with opening new international stations, preparing equipment for longhaul service (764 reconfigs), and product improvements.

These costs notwithstanding, I have a hard time believing that Delta's domestic margins are better than their international margins for a few reasons:
-Strong exposure to LCCs in major markets and traffic flows
-Approximately 23% of domestic ASMs operated by contract carriers with slightly higher CASM than mainline
-Large fleet of MD-88s and 757s with greater fuel consumption than comparable 737-800/900 or A320/321 equipment

Internationally, Delta's advantages are:
-Biggest transatlantic hub is virtually free of competition and accessible to massive network of connecting options (ATL)
-Secondary transatlantic hub has nearly limitless O/D potential and capable of supporting routes to almost any international market (JFK)
-Extensive, capable 767-300/400ER fleet with dense configurations
-High-end premium product in BusinessElite
-Presence in all major transatlantic markets
-Growing presence in burgeoning Latin American market

Naturally, Delta's domestic market has some strong advantages as well, perhaps the best out of the majors, but in the competitive environment, nobody's margins are better in the States then they are abroad. If this were the case, DL would be adding, not removing, capacity.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: Delta Reports Record April Load Factors

Mon May 07, 2007 8:41 am

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 these new routes and they are not spooled up in terms of revenue.

DL is successfully adding considerable capacity to its int'l network and is selecting the markets and managing the capacity very successfuly. There were no shortage of pundits that said DL would be dumping capacity into the int'l marketplace and suppressingly yields. That simply is not happening.

While DL's int'l load factors is flat, its int'l RASM growth is as strong if not stronger than domestic.

It is because DL is growing capacity and unit revenues on its int'l system that it will continue to grow its int'l system.

In the meantime, its domestic system is profitable and will continue to be, as DL has had for most of its existence.

Who is online

Users browsing this forum: Amiga500, AsiaTravel, Baidu [Spider], BartSimpson, CARST, CHCalfonzo, dmorbust, flywrite, fortytwoeyes, hvusslax, JetBuddy, KarelXWB, KingOfATC, klm617, lakeeffect, Majestic-12 [Bot], Mumrik, olle, sassiciai, Tr4il, wolbo, YYZYYT and 288 guests