Cargo revenues and demand down at Delta

Delta Air Lines ended 2016 with declines in both cargo revenues and demand once again.
The US airline saw cargo revenues decline by 17.8% year on year during 2016 to $668m, with declines being particularly strong in the first half of the year. Delta also reported revenue declines in 2015 and 2014.
Delta does not provide commentary on the results of its cargo division, but the decline in revenues does reflect the wider industry trend of rate declines for the majority of the year.

Revenue declines also mirror a 9.5% year on year decline in annual demand to 2bn cargo ton miles.
On the traffic front Delta has been registering declines ahead of US rivals American and United this year.
But while demand and revenues have been declining faster than its main US rivals, Delta’s yield per ton mile for the year of 33.72 cents is likely to be ahead of that of United and American.
Delta’s new cargo boss, Gareth Joyce, hopes to switch the airline from a transactional approach to business to a more consumer-centric focus and also leverage Delta’s domestic network.
It is also looking to co-locate some of its European operations with partners Air France KLM and Virgin Atlantic.


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