Delta’s December Traffic Up on Holiday Season Demand

Delta Air Lines Inc. (DAL) witnessed considerable increase in air traffic in the month of December. Traffic – measured in revenue passenger miles (RPMs) – came in at 16.1 billion, up 2.1% from 15.78 billion recorded in the comparable month a year ago. On a year-over-year basis, consolidated capacity (or available seat miles/ASMs) inched up 4% to 19.26 billion. Meanwhile, the load factor or percentage of seats filled by passengers decreased to 83.7% in Dec 2014 from 85.2% in the year-ago month.

In fiscal 2014, Delta generated RPMs of 202.9 billion (up 4.1% year over year) and ASMs of 239.7 billion (up 3% year over year). Load factor was 84.7% against 83.8% last year. Likewise, passengers boarded in the month grew 2.4% while for the full year rose 4.1%.

However, Delta witnessed a 4.5% drop in PRASM (passenger revenue per available seat mile) in the month mainly driven by a significant increase in air travel during the holiday season.

Delta continues to perform impressively riding on new route launches, introduction of ancillary products, revamping of fleet structure and efficient customer service. Further, the company continues to deliver solid results through its joint venture and expects trans-Atlantic revenues and capacity to increase backed by the strength in the New York-London route.

Other Stocks to Consider

Delta Airlines currently sports a Zacks Rank #1 (Strong Buy), while other stocks having the same Zacks Rank are American Airlines Group (AAL), JetBlue Airways Corp. (JBLU) and Hawaiian Holdings Inc. (HA).