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Delta replacing DC-9s with JAL MD-90s; US Airways traffic up 5.5% in Feb-2011.

Analysis

Delta Air Lines announced it is acquiring nine used MD-90s from Japan Airlines Corp, replacing older DC-9s being retired. Deliveries will commence after the aircraft are refurbished to match Delta's fleet.

Delta will continue to look for opportunities to acquire used MD-90s, to be operated on domestic routes, and plans to purchase 50 of the used MD-90 jets over the next two years. Delta's DC-9s have an average age of 34 years.

Shares in US carriers were generally stronger on Thursday, with the exception of American Airlines, which dropped 1.1%.

Delta Air Lines also reported the following traffic highlights in Feb-2011:

  • Passenger numbers: 11 million, +0.9% year-on-year;
  • Revenue passenger miles: +1.4%;
  • Passenger load factor: 73.7%, -3.4 ppts;

US Airways announced (03-Mar-2011) the following traffic highlights in Feb-2011:

  • Passenger numbers: 4.3 million, +5.5% year-on-year;
    • Mainline: 3.8 million, +4.8%;
    • Regional: 551,103, +10.3%;
  • Passenger load factor: 76.3%, -0.9 ppt;
    • Mainline: 76.8%, -0.8 ppt;
    • Regional: 66.6%, +0.9 ppt.

American Airlines announced (03-Mar-2011) the following traffic highlights in Feb-2011:

  • Passenger numbers: 6.0 million, +0.3% year-on-year;
  • Revenue passenger miles: +2.2%;
    • Domestic: stable;
  • Passenger load factor: 74.8%, -0.7 ppt;

Selected AAD daily share price movements (% change): 03-Mar-2011

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