Delta sees year-over-year cargo decrease
Delta experienced a 1 percent decline, year-over-year, in cargo revenue during the second quarter of 2012. For the first six months of the year, Delta's cargo activity was also relatively flat, amounting to a 2-percent decrease in revenue when compared to the same period in 2011.
According to a company press release, these modest decreases were due to lower cargo yields, which were offset by higher freight volumes. Year-over-year, passenger revenue rose 7 percent on the strength of a 6.8-percent increase in yield. Most of the passenger increase came from activity in the Pacific, where Delta saw a 20-percent boost in revenue. In comparison, domestic passenger revenue only increased 7 percent, with Atlantic revenue rising 1 percent.
"Delta's revenue performance in the June quarter was among the best in the industry as we experienced benefits from our customer-focused initiatives, corporate sales growth, and capacity discipline," Delta's president, Ed Bastian, said in a statement. "By actively managing the business through capacity reductions and pricing actions, we expect to maintain our solid revenue performance despite the continuing uncertain economic backdrop."
Though fuel prices of $3.37 per gallon were a factor in reducing revenues, Delta officials expect to benefit from average prices of less than $3.10 for the rest of the year. Increases in employees wages also impacted Delta's expenses during the quarter.