Delta, United have solid OCTOBER

[General Lee]

Delta, United Report Solid October Results

By Eric Gillin
Staff Reporter
11/05/2003 04:52 PM EST
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The latest round of October results for the airline industry showed the big carriers shrinking capacity and packing planes with more passengers, while many low-cost and regional carriers expanded their capacity.

On Wednesday, Delta Air Lines (DAL:NYSE - commentary - research) and United Airlines, unit of UAL (UAL:NYSE - commentary - research), released October results that echoed results from Continental Airlines (CAL:NYSE - commentary - research) and American Airlines, unit of AMR (AMR:NYSE - commentary - research), on Tuesday.


Delta said traffic, or revenue passenger miles, fell 0.6%, against a 3.4% drop in capacity, or available seat miles. Because capacity fell faster than traffic, the carrier filled more seats on its planes, coming in with a load factor of 72.9%, up 2 percentage points from last year. United, whose shares have been rallying despite being worthless, said traffic fell by 2%, but with capacity down 9.6%, load factor came in at 76.6%, up nearly 6 percentage points from last year.

Results from network carriers show how capacity constraints and cost-cutting may benefit carriers with more leverage when an economic recovery comes, especially with planes packed with passengers. But because traffic continues to fall, it's also clear that pricing power remains weak and that discounted tickets continue to drive demand.

While the network carriers continue to manage operations with an eye on profits in late 2004, the low-cost and regional players are seeing traffic grow. America West (AWA:NYSE - commentary - research), which recently unveiled growth plans for 2004 and beyond, said traffic rose 2.4% while capacity fell by 2.8%, boosting load factors to 77.8%, up nearly 4 percentage points from last year. ATA Airlines (ATAH:Nasdaq - commentary - research) said traffic increased 23.3%, while capacity grew 22.1%, helping boost load factors to 66.5%.

Elsewhere, Alaska Airlines (ALK:NYSE - commentary - research), a regional player serving the Northwestern part of the U.S., said traffic increased by 17.1%, while capacity increased 9.3%, driving load factor to 65.4%, up from 61% a year-ago.

Airline stocks were lower Wednesday in reaction to the largely expected October results, with the Amex Airlines down 0.9%. Delta was off 20 cents, or 1.5%, at $12.75, while ATA was off 16 cents, or 1.7%, at $9.50. America West and Alaska Air were both unchanged.





This period of time--the Fall season---usually is the slowest for us. We can only hope for a better Holiday season, and Spring and Summer next year.

Bye Bye--General Lee

 

[njcapt]

Delta, United Report Solid October Results

...Delta said traffic, or revenue passenger miles, fell 0.6%, against a 3.4% drop in capacity, or available seat miles. Because capacity fell faster than traffic, the carrier filled more seats on its planes, coming in with a load factor of 72.9%, up 2 percentage points from last year.

Jeez at this rate, in twenty years or so, Delta will have one airplane and a 100% load factor. ATL to DFW.

Welcome back, General.

 

[Tanner]

Are you mad cause you didn't get the interview?

 

[FLB717]

No, he's happy because he's not furloughed.

 

[Ty Webb]

Geez, that's a "solid October"? RPM's are lower than last year, which was the month following the first anniversary of 9-11.

Sorry, but like the old saying goes, "Don't piss on my head and tell me it's raining".

 

[General Lee]

TY,

We knew the Fall was going to be tough for us. Since last Fall, we have parked 12 MD-11s (shortly after the war), and since heard from our VP of Marketing say that "we left money on the table this last Summer" (note----not the pilots' fault). Now, this OCT we almost filled as many seats as last year, but have 12 less widebodies flying to Europe or MCO (where they flew mostly). I'd say that's pretty good. The LCCs are have huge gains compared to last year---but that would be obvious because you are getting new airplanes each month---thus increasing your seats available. IF you get new airplanes---you will have a better chance of having a lot more seats sold. We parked 12 BIG airplanes, and almost did just as well. It's all about how you read the numbers----like "Arthur Anderson Accounting."

Bye Bye---General Lee

 

[FLB717]

do I need to be worried that my Stock manager was once an Accountant for Arthur Anderson

 

[General Lee]

FLB717,

If you invested in your own company, I bet you are smiling.


Bye Bye--General Lee

 

[texanpilot]

Go ATA!!!