Corporate travel volume at Delta Air Lines increased 2
percent year over year during the first quarter, although operating revenue declined.
Delta chief revenue officer Glen Hauenstein, who will assume
the role of president next
month, said corporate demand was "solid," singling out health
care, financial services and technology as better-performing corporate
segments. Delta executives also have a favorable outlook for corporate demand
this year. They surveyed corporate travel managers, and 82 percent said their
air travel demand would be the same or increase for the rest of the year,
Hauenstein said.
Delta's operating revenue declined 1.5 percent year over
year in the first quarter to $9.3 billion. Most of that decrease came from $125
million in foreign currency effects and $5 million in lost revenue following
the Brussels terrorist attacks, Hauenstein said.
Consolidated traffic increased 3.3 percent year over year,
and capacity increased 2.7 percent, lifting Delta's load factor 0.4 percentage
points year over year to 82.1 percent.
Delta reported a net income of $946 million for the first
quarter, up from $746 million in the first quarter of 2015. Delta's adjusted
fuel expenses went down $1.5 billion, though lower fuel costs also contributed
to a $28 million loss from Delta's refinery.
The carrier also reported solid operational performance,
with 99.4 percent of flights completed and 86.5 percent arriving within 15 minutes
of their scheduled time. Delta had 49 days with no mainline cancellations and
six more days with cancellations related only to the Brussels attacks.
"It's now more rare to have a day with a
cancellation than not on our mainline product," incoming Delta CEO Ed
Bastian said.