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Delta Air Lines directs the bulk of 2015 capacity growth to domestic markets and increases partners

Analysis

Delta Air Lines plans to deploy the majority of its planned 2% capacity growth for 2015 into the US domestic market, where it holds a strong market share. It is a region that has performed well for Delta and all the other US airlines in 2014, and for Delta provides a counter weight to some weaker geographies, namely the Pacific. Delta is undertaking a network restructuring of its Pacific operations as well as facing higher industry capacity in the market.

Two of the airline's major focal points in the domestic market during the last couple of years - New York and Seattle appear to be performing well. Delta's stature in New York is buoyed by its joint venture with Virgin Atlantic while sceptics of its Seattle strategy are being quieted by the relative success of its rapid build-up in the market.

Delta is ending 2014 on a positive note, as projections in some of its financial metrics for 4Q2014 are higher than originally forecast, giving the airline confidence that the positive momentum will continue into 2015 even with modest economic growth.

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