Rebound in international markets drives Delta Air Lines' capacity uptick in 2018
Delta Air Lines posted the first positive results in its trans-Atlantic entity in three years in 3Q2017, at a time when low cost competitors have expanded in the market place. That performance resulted in the airline’s overall international unit revenue growth for the quarter outpacing domestic, and Delta believes the momentum in its international operations will remain robust for the remainder of 2017.
The performance is a bit of surprise, given that Delta’s domestic entity has been an outperformer for the past couple of years. The rebound in the trans-Atlantic is giving Delta confidence that it should end 2017 with positive unit revenue in each of its geographical entities.
Delta’s initial capacity forecast for 2018 is growth of 2% to 3%, which is higher than the 1% increase the airline is planning for 2017. Some of the increase is driven by longer stage lengths, and part of the bump is a return to international capacity growth as Delta believes it can take advantage of renewed strength in those markets.
Become a CAPA Member to access Analysis Reports
Our Analysis Reports are only available to CAPA Members. CAPA Membership provides exclusive access to in-depth insights on the latest developments in the aviation and travel industry, developed by our team of dedicated analysts located in Europe, North America, Asia and Australia.
Each report offers a fresh perspective on the latest industry trends and is available online or via the CAPA mobile app, with customisable alerts to help you stay informed and identify new business opportunities.
CAPA Membership also provides access to our full suite of tools, including a tailored selection of more than 400 News Briefs every weekday and comprehensive data and analysis on thousands of companies around the world.