See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Delta Air Lines, Inc. (DAL) - free report >>
United Airlines Holdings Inc (UAL) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Delta Air Lines, Inc. (DAL) - free report >>
United Airlines Holdings Inc (UAL) - free report >>
Image: Bigstock
Delta Air Lines' (DAL) October Traffic and PRASM Decrease
Airline behemoth Delta Air Lines (DAL - Free Report) reported disappointing traffic data for the month of October.
Revenue passenger miles (RPMs) – a measure of air traffic – dipped 0.3% to 17.57 billion on a consolidated basis, while capacity (available seat miles/ASMs) expanded 1.7%. Load factor declined 180 basis points (bps) to 85.1% in the month as traffic contracted and capacity expanded, leading to relatively empty planes. The company registered a completion factor of 99.4% with 92.1% of its flights on schedule.
At the end of the first ten months of 2016, Delta reported a 1.7% increase in RPMs to180.67 billion and 2.4% rise in ASMs to 213.79 billion, both on a year-over-year basis. Load factor decreased 60 bps to 84.5% as traffic growth was outpaced by capacity expansion.
Consolidated passenger unit revenue (PRASM) declined 6.5% year over year in the month. The supply-demand imbalance in the Transatlantic region as well as headwinds related to holiday timing (to the tune of approximately 2 points) contributed to the decline. However, the company said that the decrease was in-line with expectations.
We note that unit revenue issues have been hurting the airline industry for quite some time. Apart from Delta Air Lines, its peers like American Airlines Group (AAL - Free Report) , United Continental Holdings (UAL - Free Report) and Southwest Airlines (LUV - Free Report) have also been suffering from unit revenue woes.
Passenger unit revenues in the fourth quarter are projected to decline in the band of 3–5%. The carrier expects to return to positive unit revenue growth by early next year.
DELTA AIR LINES Price
DELTA AIR LINES Price | DELTA AIR LINES Quote
Delta Air Lines currently carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>