Delta in revenue expectation shortfall

admin
By admin July 3, 2014 16:35

Delta in revenue expectation shortfall

Delta has reported that passenger revenue per-available-seat-mile (PRASM) increased by 4.5% in June, which is lower than its original forecast of 7%. The airline blames the shortfall on international weakness.

Delta stated that while US results were solid overall, the airline noted that business demand was lower to Latin America due to the World Cup tournament in Brazil and industry-wide capacity increases that have impacted ticket prices.

Delta also expects Latin America weakness, due to businesses reducing travel during the World Cup, would be likely to subside during the second half of July.

Lufthansa cited “overcapacity” in Europe last month when it issued a profit warning.

admin
By admin July 3, 2014 16:35
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