Minneapolis St Paul International Airport

Despite 1Q loss, Delta is bullish on profitability as it strengthens hubs and cuts Atlantic capacity

Delta Air Lines intends to improve this year on the USD1.2 billion profit it posted in 2011 despite recording a pre-tax USD36 million loss 1Q2012. The carrier believes strong demand and revenue trends will continue throughout 2012, allowing it to recoup increases in fuel expenditure that rose USD250 million during the first three months of 2012.

The pre-tax loss was a USD355 million year-on-year improvement of Delta’s 1Q2011 results, driven by a strong revenue performance despite headlines of a spreading recession in Europe and the uncertain ripple effects of the continent’s economic woes. Factoring in USD136 million in special items, including the favourable settlement of fuel hedges and a USD39 million gain from the settlement of its airport slot swap with US Airways, Delta recorded a USD163 million profit. Its net loss excluding those items was USD39 million.

World Airport Rankings 2010: US airports dominate, Atlanta still biggest. Tokyo Haneda into Top 30

The world’s air traffic controllers had a slightly busier year in 2010, handling 0.8% more flights across the leading airports. But regional differences abound. Aircraft movements increased the most in Latin America-Caribbean (+6.2%), Middle East (+6.1%) and Asia Pacific (+5%) while movements continued to decline in Europe (-0.4%) and North America (-1.2%), according to Airports Council International.

Southwest, AirTran plan merger, Atlanta and revenue the story

As most were speculating about the consolidation of the mainline industry in the US late last year and earlier this year, some were saying it was the low-cost carrier sector in need of consolidation.

Delta contributes to US regional consolidation - selling Mesaba and Compass

As part of efforts to focus on its core mainline business, Delta is continuing the process of unbundling its regional operations, selling Mesaba and Compass – both acquired with Northwest – to Pinnacle Airlines Corp and Trans States Airlines, respectively, for USD82 million. The proceeds from these transactions will be used by Delta for general corporate purposes.

US airline hubs in the time of alliances: balancing the odds

The US airline hub system counts among its number certain key airports which are long established and which, for various reasons, will almost certainly continue to be important parts of the nation’s aviation framework. This review looks at the key hubs and their likely future in a time when global alliances are increasingly relevant.