Tuesday, 5 August 2014

Delta: Revenue rises on higher fares, fuller planes

Delta Air Lines said Monday that passengers flew more and paid higher average prices than a year ago, indicating that there has been no let-up in solid demand for air travel.

Delta said that a key revenue figure rose 3% last month compared with July 2013. The increase in passenger revenue for every seat flown one mile indicated that the airline was able to fill a few more seats and charge higher average fares.

The airline predicted that the revenue figure would rise by between 2% and 4% for the entire July-through-September quarter.

Delta, the third-largest airline operator, said passengers flew 19.97 billion miles last month, up 2.8% from July 2013. Domestic traffic rose 4.7% while international travel increased just 0.3%.

The airline boosted passenger-carrying capacity by 2.2% -- that is usually done by adding more flights or using bigger planes. The average flight was 87.5% full, compared with 87% a year earlier. Domestic flights accounted for the increase, while international flights had more empty seats because Delta added capacity.

Shares of Atlanta-based Delta fell 51 cents to $37.07 in midday trading. They began the day up 37% in 2014.

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