Delta Air Lines' second-quarter corporate revenue increased
8 percent year over year, with "good forward bookings" and a "solid
demand environment" heading into the fall, according to executives speaking
during a Wednesday conference call with analysts and media.
Delta president Ed Bastian said the largest corporate
revenue growth came from banking, finance and media sector clients. Executives
also credited Delta's joint venture with Virgin Atlantic for providing a
"foothold" into the lucrative New York JFK-London Heathrow market,
particularly with financial services firms. On that route, Delta has seen
double-digit percentage growth in unit revenue despite also increasing
capacity.
London routes account for more than one-third of U.S.
business traffic to Europe, and with the joint venture placing Delta in the No.
2 position among U.S. carriers connecting to the United Kingdom, it is looking
for more opportunities to build with Virgin, according to executives.
Delta posted second-quarter net income of $801 million, up
from $685 million in the prior-year period, with operating cost per available
seat mile staying about flat. Overall passenger revenue for the quarter
increased by 9 percent to $9.3 billion.
The carrier reported a 5.7 percent increase in passenger revenue
per available seat mile and a 3.8 percent improvement in yield, which
represents fare paid per mile. Overall capacity as measured in available seat
miles increased by 3 percent, and passenger load factor increased by 1.5
percentage points to 86.3 percent.
Revenue from "seat-related products and other
merchandising initiatives" grew by $45 million year over year, according
to Delta.