US majors including United and Delta cite sustained demand as 3Q2012 comes to a close

Behind the perpetual headlines of economic uncertainty in Europe, the intensifying presidential race in the US and concerns over the US economy, US major network carriers are presenting a positive demand outlook as 3Q2012 comes to an end and remain cautiously optimistic heading into the last three months of 2012. Most of the confidence stems from the industry at large continuing to practice capacity discipline and overall steady pricing traction. While concerns about the global economy at large continue to linger, for now the three large US major airlines see no major erosion in their business fundamentals.

Delta Air Lines recorded a 4% rise in unit revenue for Aug-2012, and during a 06-Sep-2012 investor conference carrier president Ed Bastian explained that the airline during the month lapped a 1.5ppt "good guy" in Aug-2011 driven by the suspension of ticket taxes collected by the US FAA as the country's Congress reached a stalemate over the agency's funding.