Delta Reports Lower Traffic - Analyst Blog

Last week Delta Air Lines (DAL) announced that its mainline traffic decreased 6.1% compared to the same period a year ago. System traffic in November 2009, decreased 7.1% compared to Nov 2008 on an 8.4% decrease in capacity. Load factor or occupancy increased 110 basis points to 79.6%.

Number of passengers flown during the month of November declined 5.3% year-over-year to 12.2 million. Though the company reported selling more corporate tickets in November, it had to lower prices to achieve these figures, bringing the revenue from corporate tickets 10% down from the year ago period.

Delta expects unit revenue to be down 7% in the fourth quarter of 2009, compared with a previous forecast of an 8% decline. It also expects a total of $5.1 billion of unrestricted liquidity at the year’s end, up from a previous forecast of $5 billion.

In sync with the November results, which pointed to a weak end of the year, based on low travel demand and fuel price volatility, management doesn’t expect very profitable fourth quarter results. November traffic for peers rose 1.8% at United Airlines (UAUA) and 2.9% at Continental Airlines (CAL). It fell 1.6% at US Airways (LCC) and 0.5% at American Airlines (AMR). November traffic jumped 11.7% at Southwest Airlines (LUV).