Delta’s Q3 Results in Two Words – Domestic Revenues

Delta was the first airline to post Q3 results, and they did not disappoint. Net income was up $173M compared with the same quarter in 2018, to almost $1.5b. Once again, we find visualizing the year-over-year results the best way to provide full context into how the airline is trending. For Delta, the trend is positive. Even though the lower fuel prices were a tailwind for Delta, the massive growth in domestic revenues is the story. Undoubtedly, some of these revenues came at the expense of United, American, and Southwest’s grounded 737 Max’s. Delta saw the opportunity to grab market share, and took it. The result is a 7.8% increase in domestic passenger revenues. Two numbers that warrant watching over the next few quarters are the Pacific passenger revenues, and the cargo revenues. These could be indicators of global economic challenges, or simply blips on the map from any number […]

LATAM’s Shift From American to Delta

LATAM is leaving American for Delta. Boom. Just like that. On Friday, it was announced that Delta would acquire 20% of LATAM and take assignment of 14 A350s originally destined for LATAM. In exchange, Delta will receive the best Latin American code-share partner U.S. dollars can buy. This week, we focus on LATAM, and how their U.S. network compares to both the incoming, and the out-going partner. LATAM’s network to the U.S. is built around American. With the vast majority of the capacity destined for Miami, the partnership is obvious: Miami dominates Latin America connectivity. American dominates Miami. The question at hand is whether LATAM has such a large presence in Miami because it is their partner’s hub, or if they have the partner because they have such a large presence in Miami. (Spoiler alert: Miami matters). LATAM cannot leave Miami, partner or no partner. It is far too large […]