Delta's revenue from corporate customers increased 12% year
over year in the third quarter, helping to push the carrier's total passenger
revenue up 8.2%, 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% in revenue from its premium products. Hauenstein said Delta international
president and exective vice president 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 reported a strong outlook in corporate demand,
as 90% of its corporate customers indicated in a recent survey that they
expected to maintain or increase spending levels into next year.
Passenger load factor for the quarter was flat at 86.9%, as
traffic increased 3.8% and capacity increased 3.9%. Yield rose 4.2%, an
indicator of higher fares.
Domestic revenue jumped 9.2%. Transatlantic revenue rose 10.7%,
and transpacific revenue increased 3%. Latin America routes were the only ones
for which revenue decreased in the quarter, down 2.6%.
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, but Delta offset 85% of that with revenue growth and stable
costs outside of fuel, CEO Ed Bastian said.
Source: Business Travel News