Delta Air Lines records decline in Q3 cargo revenues

Delta Air Lines’ cargo division saw revenues, volumes and yields decline during the third quarter of the year, despite the overall airline recording an increase in profits.
The US airline saw its cargo revenues decline for the second quarter in a row, dipping by 19.7% on a year earlier to $196m (see table below).
Although it didn’t discuss cargo performance in the release that accompanied the figures, overall revenues at the airline also recorded a “modest” decrease because of currency volatility and global economic uncertainty.
Cargo revenues were also affected by a decline in traffic. During the third quarter period, Delta’s cargo division saw demand slide by 13% year on year to 557m cargo ton miles.
It is also the second quarter in a row that cargo volumes have declined on a year earlier.
Cargo revenues per ton mile at the airline also continued to slide, reaching 35.19 cents for the period. This is the third quarter in a row that this metric has fallen behind the year-ago level.
While Delta’s cargo division continues to report declines in revenues and demand, the overall airline had a “strong” quarter.
While revenues at the airline declined by 0.6% on a year ago to $11.1bn on the back of the currency fluctuations and economic uncertainty, net income increased to $1.3bn from $357m a year earlier.
This comes on the back of a $1.1bn decline in adjusted fuel expenses, which has allowed it to “evaluate and prune costs across all parts of the business”.
During the period it also invested in a 3.5% stake in China Eastern.

Data source: company. Graphic source: Air Cargo News

Data source: company. Graphic source: Air Cargo News

Data source: company. Graphic source: Air Cargo News