Delta's revenue from corporate customers increased 12
percent year over year in the third quarter, helping to push the carrier's
total passenger revenue up 8.2 percent to $10.8 billion.
During the quarter, the carrier was able to push up
corporate fares. It also saw "close-in booking strength," Delta
president Glen Hauenstein said on an earnings call. Additionally, the carrier
noted an increase of just under 20 percent in revenue from its premium
products. Hauenstein said Delta international president and EVP of global sales
Steve Sear and his team "have done an amazing job of getting premium
[product] into corporate sales agreements" and that "upsell revenues
continue to be a source of strength."
The carrier also reported a strong outlook in corporate
demand, as 90 percent of its corporate customers indicated in a recent survey
that they expected to maintain or increase spending levels into next year, he
said.
Passenger load factor for the quarter was flat year over
year at 86.9 percent, as traffic increased 3.8 percent and capacity increased
3.9 percent. Yield rose 4.2 percent year over year, an indicator of higher
fares.
Domestic revenue jumped 9.2 percent. Transatlantic revenue
rose 10.7 percent, and transpacific revenue increased 3 percent. Latin America
routes were the only ones for which revenue decreased in the quarter, down 2.6
percent year over year.
Delta reported a net income of $1.31 billion for the quarter,
compared with $1.16 billion in the third quarter of 2017. Fuel costs rose $655
million year over year during the quarter, but Delta offset 85 percent of that
with revenue growth and stable costs outside of fuel, CEO Ed Bastian said.
Related:
Delta Q2 earnings