Delta reports August financial and operating performance

Juliette O'Neill
By Juliette O'Neill September 2, 2016 14:58

Delta reports August financial and operating performance

Delta Air Lines has reported financial and operating performance for August 2016, during which the airline saw declines in unit revenues and experienced a significant outage.

Consolidated PRASM (passenger revenue per available seat mile) for August was down 9.5 percent compared to the same timeframe a year ago. Delta said its August outage negatively impacted revenue by roughly $100 million for the month – or by two points of PRASM.

The airline also continues to see pressure from close-in domestic yield weakness – pricing on business travel tickets purchased close to the time of travel. Other pressure points cited are ongoing supply-demand imbalance in the trans-Atlantic and headwinds from its Yen hedge positions.

Despite the outage causing significant operational disruptions, Delta’s mainline completion factor – the percentage of flights that were not cancelled – came in at 98 percent for the month, with preliminary data showing 79.9 percent of those flights arriving on time. Delta’s operations were back to normal three days after the outage occurred and was fixed.

“We are grateful to our customers for continuing to rely on Delta for the superior customer service and operational performance you’ve come to expect from us,” said Ed Bastian, CEO – Delta Air Lines. “Our recovery effort exemplified the hard work and determination of Delta people worldwide, and all 80,000 remain dedicated to regaining your trust.”

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Juliette O'Neill
By Juliette O'Neill September 2, 2016 14:58