Delta and United record solid 2Q2013 results while remaining optimistic for 2H2013

The largest US network carriers Delta Air Lines and United Airlines both recorded solid financial results for 2Q2013, with Delta beating its previous unit costs guidance and United predicting favourable unit revenue growth during 3Q2013. Falling oil prices resulted in some deterioration in yield strength, which reflects the correlation that energy prices have to airline pricing traction. Stressing that interrelationship, Delta is assuring that softer yields have little bearing on core demand.

Delta executed decent revenue performance and better than expected unit cost management while United admitted its costs performance is still posing challenges, but pledged to rein in some costs during 2H2013. United's unit revenue performance continues to improve after lagging behind the industry average for most of 2012.