Delta Air Lines (DAL) August PRASM Fell 9.5%

September 2, 2016 9:01 AM EDT
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Delta Air Lines (NYSE: DAL) reported financial and operating performance for August 2016.

Consolidated passenger unit revenue (PRASM) for the month of August declined 9.5% year over year, as the company continues to see pressure from close-in domestic yield weakness, the ongoing supply-demand imbalance in the Transatlantic, and headwinds from its Yen hedge positions.

In addition, the outage Delta suffered in August resulted in 2,300 cancelled flights over a three day period. The outage and subsequent operational recovery efforts negatively impacted August revenue by approximately $100 million or 2 points of PRASM.

"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."

The company's financial and operating performance is detailed below.

Preliminary Financial and Operating Results

August consolidated PRASM change year over year

(9.5)%

August mainline completion factor

98.0%

August on-time performance (preliminary DOT A14)

79.9%

Monthly Traffic Results (a)

Year to Date Traffic Results (a)

Aug 2016

Aug 2015

Change

Aug 2016

Aug 2015

Change

RPMs (000):

Domestic

11,833,254

12,013,759

(1.5%)

88,105,510

85,066,156

3.6%

Delta Mainline

10,016,538

10,131,423

(1.1%)

74,227,920

71,092,608

4.4%

Regional

1,816,715

1,882,336

(3.5%)

13,877,589

13,973,548

(0.7%)

International

8,389,918

8,801,722

(4.7%)

57,400,260

57,630,450

(0.4%)

Latin America

1,669,296

1,718,523

(2.9%)

14,138,250

13,521,697

4.6%

Delta Mainline

1,626,144

1,682,685

(3.4%)

13,748,895

13,262,662

3.7%

Regional

43,152

35,838

20.4%

389,355

259,035

50.3%

Atlantic

4,496,377

4,648,008

(3.3%)

27,472,919

27,623,385

(0.5%)

Pacific

2,224,244

2,435,191

(8.7%)

15,789,092

16,485,368

(4.2%)

Total System

20,223,172

20,815,481

(2.8%)

145,505,770

142,696,606

2.0%

ASMs (000):

Domestic

14,183,486

13,819,205

2.6%

103,859,092

98,894,343

5.0%

Delta Mainline

11,895,479

11,533,073

3.1%

86,463,970

81,554,392

6.0%

Regional

2,288,007

2,286,132

0.1%

17,395,122

17,339,951

0.3%

International

9,767,853

10,012,009

(2.4%)

68,486,233

69,243,349

(1.1%)

Latin America

1,928,119

1,994,307

(3.3%)

16,680,093

16,285,242

2.4%

Delta Mainline

1,875,862

1,951,975

(3.9%)

16,198,120

15,955,921

1.5%

Regional

52,257

42,332

23.4%

481,974

329,321

46.4%

Atlantic

5,427,196

5,341,957

1.6%

33,940,703

33,793,513

0.4%

Pacific

2,412,538

2,675,745

(9.8%)

17,865,437

19,164,594

(6.8%)

Total System

23,951,339

23,831,214

0.5%

172,345,325

168,137,692

2.5%

Load Factor:

Domestic

83.4%

86.9%

(3.5)

pts

84.8%

86.0%

(1.2)

pts

Delta Mainline

84.2%

87.8%

(3.6)

pts

85.8%

87.2%

(1.4)

pts

Regional

79.4%

82.3%

(2.9)

pts

79.8%

80.6%

(0.8)

pts

International

85.9%

87.9%

(2.0)

pts

83.8%

83.2%

0.6

pts

Latin America

86.6%

86.2%

0.4

pts

84.8%

83.0%

1.8

pts

Delta Mainline

86.7%

86.2%

0.5

pts

84.9%

83.1%

1.8

pts

Regional

82.6%

84.7%

(2.1)

pts

80.8%

78.7%

2.1

pts

Atlantic

82.8%

87.0%

(4.2)

pts

80.9%

81.7%

(0.8)

pts

Pacific

92.2%

91.0%

1.2

pts

88.4%

86.0%

2.4

pts

Total System

84.4%

87.3%

(2.9)

pts

84.4%

84.9%

(0.5)

pts

Mainline Completion Factor

98.0%

99.8%

(1.8)

pts

Passengers Boarded

16,340,426

16,856,971

(3.1%)

123,713,175

120,611,324

2.6%

Cargo Ton Miles (000):

162,968

186,828

(12.8%)

1,303,064

1,472,525

(11.5%)

aResults include flights operated under contract carrier arrangements



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