- Global: +2.9% capacity, +1.9% scheduled services year-on-year;
Global seat capacity up 2.9% in Jan-2012: OAG
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Delta Air Lines defends its capacity increases as special items trigger a drop in 3Q2014 profits
Delta Air Lines continues to trumpet capacity discipline even as it fields questions about a projected 2% rise in CY2015 supply, particularly increases in the trans-Atlantic where airlines are facing industry oversupply.
The airline assures that most of its trans-Atlantic push is directed to London in conjunction with its joint venture partner Virgin Atlantic, and its supply growth in the North Atlantic is in line with demand.
Overall Delta still remains on strong financial footing. But there are specific pockets of geography where is faces challenges that could create revenue pressure during 2015.
Delta Air Lines trims 3Q2014 unit revenue targets due to overcapacity and other global challenges
Delta Air Lines has slightly adjusted its passenger unit revenue targets for 3Q2014 triggered by oversupply in some of its markets, unrest in the Middle East and the Ebola outbreak in Africa.
The airline has previously warned of tougher year-on-year comparisons in 3Q2014 after recording 7% unit revenue growth in 3Q2013. But despite the challenges that have cropped up during the last few months, Delta still predicts a strong performance in the quarter with double digit operating margin expansion and solid cost containment as demand in the US domestic market remains strong.
As it prepares to make trans-Atlantic capacity adjustments for the US winter time period in conjunction with its SkyTeam alliance partners, Delta is also making changes in it Pacific network by down-gauging Boeing 747s it operates to Tokyo and replacing them with smaller and more efficient aircraft.