DAL Reports Record February Mainline Load Factor

[FDJ2]

Delta Air Lines Reports Record February Mainline Load Factor

Monday March 5, 3:30 pm ET

ATLANTA, March 5, 2007 (PRIME NEWSWIRE) -- Delta Air Lines today reported record mainline load factor results for February 2007. Delta achieved its highest ever February load factor for its mainline system, 74.4 percent with a previous high of 74.2 percent in 2006, including mainline domestic, 76.7 percent with a previous high of 76.0 percent in 2006. International load factor was 70.3 percent, up 0.4 points compared to February 2006. Delta's system load factor for February was 74.1 percent, down 0.2 points from the same period in the prior year.

Domestic capacity decreased 5.0 percent in February 2007, which resulted in a 5.0 percent decline in traffic year over year. International traffic in February 2007 increased 27.7 percent year over year on a 27.0 percent increase in capacity. System traffic increased 2.6 percent from February 2006 with a capacity increase of 2.8 percent.

 

[~~~^~~~]

Good numbers!

 

[a320drivr]

Didnt they still lose money?

 

[ACL65PILOT]

Most likely. The will be writing a ton of debt off in the next few months as they prepare for the official exit.

 

[lowecur]

Didnt they still lose money?

Won't know till next month, but LF's were high in Jan and they had an operating loss of $55M. My guess is the numbers should be similar in Feb. When you shrink domestic 5%, your LF's are going to rise. Massport got back 9 gates in DL's palace terminal in BOS. It will be interesting to see who is willing to pay the exhorbatant rent for those gates. I think PRASMs are rising, so that means they know they need to get their yields up in order to satisfy creditors before the judge will let them emerge.

They have petitioned the judge for an extension of the exclusivity rights from April 25th to June 1st in order to prevent any other parties from presenting an alternative plan for the airline. No one is on the horizon, but this is more a precautionary move than anything else.

imp:​

 

[FDJ2]

Won't know till next month, but LF's were high in Jan and they had an operating loss of $55M.

January is typically a weak month for most airlines. No surprise there, other than the significant improvement year over year.

When you shrink domestic 5%, your LF's are going to rise.

How about when you increase capacity? By your logic load factors should decrease. However, fortunately that isn't the case. "International traffic in February 2007 increased 27.7 percent year over year on a 27.0 percent increase in capacity."

Also, although domestic capacity decreased overall system capacity increased. "System traffic increased 2.6 percent from February 2006 with a capacity increase of 2.8 percent."


They have petitioned the judge for an extension of the exclusivity rights from April 25th to June 1st in order to prevent any other parties from presenting an alternative plan for the airline.

Not quite right, DAL is still scheduled to have its confirmation hearing on April 25th, the extension was necessary in order to cover the gap between April 16th and that date.

"The Atlanta-based airline said the extension -- its fourth such request -- from April 16 to June 1 is necessary because a confirmation hearing on its Chapter 11 plan is scheduled for April 25, after the current deadline."


No one is on the horizon, but this is more a precautionary move than anything else.

imp:​

On that we agree.