Delta Air Lines has recently reported its financial results for the first quarter of 2018. The second-largest US airline recorded revenue highs while having strong demands during the period.
The airline company announced that it had $547 million in the first quarter. Despite being a 2.5% decline in a year-over-year basis, the data had a positive perception from analysts’ estimates.
Delta Air Line’s Revenue
The adjusted operating revenue of Delta for March recorded a data of $9.8 billion which is an 8 percent improvement, or $715 million YoY. The said data made a record for the company as such was driven by improvements generally. This included a 23 percent increase in cargo revenue and a $78 million upsurge in total loyalty revenue.
The Branded Fares initiative of Delta added $421 million in premium upsell revenue during the period. This was a 23 percent increase in a year ove ryear basis.
“We are seeing Delta’s best revenue momentum since 2014, with positive domestic unit revenues, improvements in all our international entities, strong demand for corporate travel and double-digit increases in our loyalty revenues,” President of Delta Air Lines Glen Hauenstein, told reports. “With our solid pipeline of commercial initiatives, delivered with industry-leading Delta service, we expect to maintain this momentum and deliver total revenue growth of 4 to 6 percent for the full year.”
Core Passenger Revenue
Core passenger revenue saw 7 percent upsurge during the period. However, it did not shine enough as a 23 percent increase overshadowed the record in cargo revenue. Additionally, the reported 32 percent jump in a broad category of “other” revenue affected the data. This had money from the loyalty program as well.
“We expect unit cost growth of 1 to 3 percent in the June quarter, as we lap prior year investments in our people and our business,” Delta’s Chief Financial Officer Paul Jacobson, told reports. “As we move through depreciation pressure from our fleet retirements and gain benefits from our upgauging.”
“One Delta initiatives later in the year, we are on track for our 0 to 2 percent full year unit cost target.”
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