Delta Air Lines misses targets for a return to positive PRASM, caps 2016 capacity growth at 2%

Underpinning the strong 3Q2015 results posted by Delta Air Lines was an acknowledgment by the company that reaching it would slip on its target of flat year-on-year passenger unit revenue performance.

Most US airlines have faced passenger unit revenue headwinds throughout 2015. In the case of Delta, approximately half of its 3Q2015 decline was driven by foreign exchange headwinds. Currency pressure is also a major contributor to the company's anticipated 2.5% to 4.5% passenger unit revenue decline in 4Q2015.

Delta has pledged that is 2016 capacity will be flat to up 2% as it works to create a positive trajectory for its unit revenue performance. Although the company stresses it manages margins and free cash flow, Delta emphasises a priority is a return to positive passenger unit revenue growth.