Delta has increased corporate airfares as it experiences its "strongest revenue momentum since 2014," although those fares remain significantly below their previous peak, Delta president Glen Hauenstein said in the carrier's first-quarter-earnings call.
In the first quarter, corporate revenue growth accelerated across all regions and rose 7 percent overall year over year, he said. Domestic fares increased 2.8 percent but have clawed back only a quarter of the decline that had occurred since their peak in 2014. Delta is working to push those up in the second quarter and beyond. "The dynamics competitively, domestically, have changed a lot over the last couple of years, but we don't see any real impediment to be able to get back there over time," Hauenstein said. "Every day we are working to get those up, and it's at a market level and an understanding-our-customers-better level."
Delta's most recent survey of its corporate customers showed 86 percent plan to maintain or increase travel spending levels in the coming quarters, he said.
Total passenger revenue in the first quarter increased 7.2 percent year over year to $8.77 billion. Upselling from Delta's branded fares brought in $421 million, up 23 percent year over year. Unit revenue growth was particularly strong on transatlantic routes, up 11.5 percent amid increased business class bookings and a strong demand outlook, according to a Cowen research note.
Delta traffic increased 2.8 percent year over year in the first quarter as capacity increased 2.7 percent, holding load factor steady at 82.9 percent. Delta reported a 4.3 percent increase in yield.
The carrier reported a net income of $547 million for the first quarter, down 2 percent year over year.
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