Travel Industry Wire

Delta Reports Operating Performance for August 2017

Delta Reports Operating Performance for August 2017

Delta Air Lines

Delta Air Lines (NYSE:  DAL) today reported operating performance for August 2017. The company carried 17.6 million passengers across our broad global network in the month.

Monthly highlights include:

  • Breaking ground on the $4 billion, 37-gate facility at New York’s LaGuardia Airport to transform this vital hub into a completely rebuilt and unified 21st-century airport; 
  • Announcing new nonstop service between New York-JFK and Lagos as well as between Orlando and Amsterdam, both to begin in March 2018; and 
  • Declaring Delta’s 17th consecutive quarterly dividend, which was increased to $0.305 per share. This represents the fourth consecutive annual 50% increase since the dividend was initiated in 2013. 

In addition, the company is providing an update to its September quarter financial outlook:

  • Delta now expects passenger unit revenue growth to be 2% – 3%, as the recovery in domestic close-in yields has been slower than anticipated. 
  • Delta’s all-in fuel price1 for the quarter is now expected to be in the range of $1.68 – $1.73, driven by the increase in market prices that began in late July. 
  • Delta expects the normalized cost per available seat mile1 excluding fuel to be up approximately 2%. 
  • Delta expects a September quarter operating margin1 of 16.5% – 17.5% compared to its previous guidance of 18%-20%. Higher fuel prices and close-in yield softness combined resulted in close to 2 points of margin pressure for the quarter.

September Quarter Outlook

Passenger unit revenue change year over year

2% – 3%

Fuel price

$1.68 – $1.73

CASM – ex fuel, including profit sharing, change year over year

     As reported

Up ~ 4%

     Normalized

Up ~ 2%

Operating Margin

16.5% – 17.5%

Monthly Traffic Results (a)

Year to Date Traffic Results (a)

Aug 2017

Aug 2016

Change

Aug 2017

Aug 2016

Change

RPMs (000):

Domestic

12,962,331

11,832,942

9.5%

91,336,139

88,115,323

3.7%

Delta Mainline

11,081,040

10,016,609

10.6%

77,499,380

74,231,791

4.4%

Regional

1,881,291

1,816,333

3.6%

13,836,760

13,883,532

(0.3%)

International

8,656,730

8,389,630

3.2%

57,542,019

57,399,771

0.2%

Latin America

1,728,469

1,669,420

3.5%

14,831,873

14,148,084

4.8%

  Delta Mainline

1,697,926

1,626,268

4.4%

14,543,543

13,758,497

5.7%

  Regional

30,543

43,152

(29.2%)

288,330

389,587

(26.0%)

Atlantic

4,860,183

4,496,402

8.1%

28,691,937

27,464,171

4.5%

Pacific

2,068,078

2,223,808

(7.0%)

14,018,209

15,787,516

(11.2%)

Total System

21,619,061

20,222,572

6.9%

148,878,158

145,515,094

2.3%

ASMs (000):

Domestic

14,887,972

14,183,367

5.0%

106,322,115

103,869,910

2.4%

Delta Mainline

12,576,733

11,895,271

5.7%

89,067,316

86,470,139

3.0%

Regional

2,311,238

2,288,096

1.0%

17,254,798

17,399,771

(0.8%)

International

9,702,867

9,767,478

(0.7%)

67,018,157

68,486,125

(2.1%)

Latin America

1,938,668

1,928,461

0.5%

16,960,627

16,690,244

1.6%

  Delta Mainline

1,902,407

1,876,204

1.4%

16,592,786

16,208,201

2.4%

  Regional

36,261

52,257

(30.6%)

367,842

482,043

(23.7%)

Atlantic

5,492,506

5,427,191

1.2%

33,876,479

33,932,119

(0.2%)

Pacific

2,271,694

2,411,826

(5.8%)

16,181,051

17,863,762

(9.4%)

Total System

24,590,839

23,950,845

2.7%

173,340,272

172,356,035

0.6%

Load Factor:

Domestic

87.1%

83.4%

3.7 Pts

85.9%

84.8%

1.1 Pts

Delta Mainline

88.1%

84.2%

3.9 Pts

87.0%

85.8%

1.2 Pts

Regional

81.4%

79.4%

2.0 Pts

80.2%

79.8%

0.4 Pts

International

89.2%

85.9%

3.3 Pts

85.9%

83.8%

2.1 Pts

Latin America

89.2%

86.6%

2.6 Pts

87.4%

84.8%

2.6 Pts

  Delta Mainline

89.3%

86.7%

2.6 Pts

87.6%

84.9%

2.7 Pts

  Regional

84.2%

82.6%

1.6 Pts

78.4%

80.8%

 (2.4) Pts

Atlantic

88.5%

82.8%

5.7 Pts

84.7%

80.9%

3.8 Pts

Pacific

91.0%

92.2%

 (1.2) Pts

86.6%

88.4%

 (1.8) Pts

Total System

87.9%

84.4%

3.5 Pts

85.9%

84.4%

1.5 Pts

Mainline Completion Factor

99.8%

98.0%

1.8 Pts

Mainline On-time Performance

87.4%

79.9%

7.5 Pts

          (preliminary DOT A14)

Passengers Boarded

17,622,941

16,338,210

7.9%

126,293,950

123,724,958

2.1%

Cargo Ton Miles (000):

194,775

163,123

19.4%

1,422,169

1,302,152

9.2%

aResults include flights operated under contract carrier arrangements

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