Delta Unit Revenue Up In November
December 2, 2015
Delta Air Lines said it earned more per mile in November than a year ago, as earlier cuts to its flight capacity abroad helped offset flat trans-Atlantic traffic in a month disrupted by the Paris attacks.
Delta said in a news release that the increase included a two percentage point benefit from the timing of peak travel around the US Thanksgiving holiday.
December passenger unit revenue will be at the "high end" of prior guidance of a drop between 2.5 percent and 4.5 percent, it said.
Delta reduced international service after unit revenue dropped earlier this year, as the strong US dollar lowered foreign sales in dollar terms.
It said the number of seats sold on November trans-Atlantic flights, or revenue passenger miles, was about flat from a year earlier. In October, that measure rose 3 percent.
Delta declined to elaborate on whether the results reflected a decrease in bookings after the Paris attacks. Airlines have acknowledged a dip in traffic to Paris after the November 13 attacks that killed 130 people.
Travel demand has been resilient over the years, dipping significantly only after the September 11, 2001 attacks, the outbreak of SARS in Asia a decade ago, and the 1991 Gulf War, said David Scowsill, president and chief executive of the World Travel and Tourism Council.
Airport and airline officials have ramped up random passenger checks and cargo screening, according to Bruce McIndoe, chief executive of travel risk consultancy iJET.
Malaysia Airlines chief executive Christoph Mueller said in an interview that there has been an impact on traffic to and from Paris, but he believes there is confidence in airlines to enhance security procedures.
"I believe it's more a function of government travel advice than people being scared to fly," he said.