Delta Reports Financial and Operating Performance for February 2015

[700UW]

Consolidated passenger unit revenue (PRASM) for the month of February decreased 1.5 percent year over year, driven by 1.5 points of continuing foreign exchange pressure on international results and 0.5 point from the impact of lapping prior year's winter storms. Continuing strength in the domestic entity and corporate revenue gains offset a portion of this month's international PRASM pressure.  System capacity increased 6% for the month which includes 2 points of capacity growth from prior year's winter storms.
 

http://finance.yahoo.com/news/delta-reports-financial-operating-performance-134500618.html

 

[Kev3188]

It's interesting to see how wx affects the operation as a whole.

Mother Nature always wins...

 

[jimntx]

So, quarterly forecast announced in mid-January was to expect "flat" 1st quarter.  First two months are down.  I guess it's going to be a gangbusters March.

 

[swamt]

Maybe a good spring brake will make up for Jan and Feb decreases.  The month of March usually makes up for the 2 worse traveling months of the year (at least with SWA it has)  pretty sure it's the same for all airlines.  I honestly think the spring breakers will be traveling more this year than in the past.  Markets are up, jobs are up, and incomes have been increasing.  With all that, I see people spending a little more money for travel, especially this spring break...

 

[metopower]

Maybe a good spring brake will make up for Jan and Feb decreases.  The month of March usually makes up for the 2 worse traveling months of the year (at least with SWA it has)  pretty sure it's the same for all airlines.  I honestly think the spring breakers will be traveling more this year than in the past.  Markets are up, jobs are up, and incomes have been increasing.  With all that, I see people spending a little more money for travel, especially this spring break...

Damn...a voice of reason. Almost sold all my stock. Thanks

 

[WorldTraveler]

It's interesting to see how wx affects the operation as a whole.

Mother Nature always wins...

except that you misread.

DL's results are affected because there is capacity that flew this year that didn't last year because of the WORSE weather last year.

and spring break or lack thereof has nothing to do with why the results are down.

As I have repeatedly noted, the problem is on the int'l system and is driven by the stronger dollar relative to major currencies such as the Euro and currencies of Latin America.

Int'l traffic for US airlines in the US winter is heavily INBOUND to the US and is thus sold in foreign currencies. A strong dollar means that US airlines gets LESS money for each ticket.
IN the summer, US travel is much more heavily US outbound and priced in dollars which means that US results are strengthened by better travel values for Americans.

Many travel writers have noted that 2015 will likely be the best year for Americans to travel abroad in decades.

Not surprisingly, DL has repeatedly upgraded equipment or added frequencies to major European destinations to take advantage of the stronger US travel demand this summer.

so, the winter int'l RASM decrease will fairly quickly swing to greater strength going into the summer.

Not also that DL noted that domestic travel is and has been strong for DL. we will see when other carriers report their RASM by region - and that might not come until mid-April when the 1st quarter closes - but DL has lead the US industry in domestic RASM growth - thanks in part to WN's retreat from ATL, DL's growing strength in highly competitive markets like NYC and LAX, and in having the highest market share in all of its hubs of the big 3 which translates into greater pricing power.

now, compound this revenue news with the fuel article which I posted earlier, and the expectations are again that DL will offset a significant portion of its hedge losses with refinery gains.

DL is also adding more capacity than any other of the big 4 US airlines which means that DL's capacity increase combined with the RASM decline this month - and perhaps for the quarter - still results in higher total revenue.

other carriers are not growing their capacity enough to offset their RASM declines.

don't sell your stock, meto.

and don't listen to the naysayers here who continue to fail to understand the real dynamics that are affecting the industry.

and it will likely be the middle of next week before AA and UA can even figure out how many people they put on airplanes in Feb - or be willing to admit their results.

 

[Kev3188]

 

except that you misread.

DL's results are affected because there is capacity that flew this year that didn't last year because of the WORSE weather last year.

Indeed.

Doesn't change my statement one bit...

 

[WorldTraveler]

Nature won last year... DL actually flew more of its capacity this year than last.

given that NYC has been whacked multiple times in Feb and DL has managed to operate at least part of the schedule, this highlights how much of the ATL operation was shut down a year ago.

As I have noted before, ATL is more than 3X larger than the combined number of seats at any other hub - including LGA and JFK combined.

ATL fared quite well this Feb.

 

[LD3]

me me me me me !!!!! It would be nice to read one post where you not so full of yourself...

 

[WorldTraveler]

it will probably happen when a few people here could recognize that someone else might actually know what they are talking about instead of spending so much time trying to discredit them.

I said months ago that the strong dollar would be hurting US carrier performance. This isn't the least bit unexpected.

 

[robbedagain]

excellent point there LD   

 

[WorldTraveler]

any prognostications on AA, UA, or WN's performance, robbed?

here's what an analyst said about AA last week

Last week, Cowen & Co. analyst Helane Becker downgraded shares of American to market perform from outperform, saying she sees unhealthy PRASM trends.

"American will likely underperform its peers in terms of PRASM growth as a result of pricing pressure in Dallas and in Latin America," she wrote. "The reason for the underperformance is a result of Southwest's promotional fares in the Dallas market and capacity/currency issues within Latin America."

In the current quarter, Becker noted, American is guiding toward a PRASM decline between 2% and 4%, while overall industry PRASM should be plus or minus 1%.

 

[diamondcutter]

it will probably happen when a few people here could recognize that someone else might actually know what they are talking about instead of spending so much time trying to discredit them.I said months ago that the strong dollar would be hurting US carrier performance. This isn't the least bit unexpected.

Well then what is it that you want as recognition?? Even if we all even started to agree you , it still would not stop! You are a dogmatist plain and simple!

 

[eolesen]

Ignoring him is the best recognition anyone can do for the good of the community.

 

[topDawg]

So, quarterly forecast announced in mid-January was to expect "flat" 1st quarter.  First two months are down.  I guess it's going to be a gangbusters March.

I think they were expecting Feb to be better. They made some changes in Euro pricing that should fix some of these issues for march. 
 

Maybe a good spring brake will make up for Jan and Feb decreases.  The month of March usually makes up for the 2 worse traveling months of the year (at least with SWA it has)  pretty sure it's the same for all airlines.  I honestly think the spring breakers will be traveling more this year than in the past.  Markets are up, jobs are up, and incomes have been increasing.  With all that, I see people spending a little more money for travel, especially this spring break...

I think thats the plan but i expect PRASM to be down for Q1 now. 
 

it will probably happen when a few people here could recognize that someone else might actually know what they are talking about instead of spending so much time trying to discredit them.

I said months ago that the strong dollar would be hurting US carrier performance. This isn't the least bit unexpected.

Yeah the only one round here who should be able to do that is you.
 
How many times has my education been questioned? Chill out glass house.