Transportation Industry

Company Watch - Delta Air Lines

AirGuide Business, June 23, 2008

Jun 23, 2008

Delta Air Lines said Wednesday that it expects to reduce domestic capacity 13% in the second half of 2008, compared with the 10% reduction it announced in March, in response to rising fuel costs. The Atlanta-based carrier said that it expects the second-quarter to be profitable, excluding special items, and international capacity for the year is expected to be up 15% to 17% for the year, in line with previous guidance. Jun 18, 2008

The rising price of fuel has cost Delta Air Lines $4 billion this year, and the carrier now plans more cuts in domestic routes as it adds international flights. In a Securities and Exchange Commission filing, the Atlanta-based airline said President and Chief Financial Officer Edward H. Bastian will brief investors later Wednesday about steps the airline will take to combat the crippling costs of soaring jet fuel prices and create a sustainable new business model. Skyrocketing fuel prices have had a $4 billion impact on Delta, Bastian will tell investors at the Merrill Lynch Global Transportation Conference in New York. The fuel prices in the second quarter averaged $3.18 a gallon, but that price is expected to rise to $3.63 a gallon in the second half of 2008. Jun 18, 2008

The US Transportation Security Administration partnered with Delta Air Lines to launch paperless mobile check-in for domestic mainline and Delta Connection travel from LGA. Technology allows customers to check in and receive electronic boarding passes via their Web-enabled devices. Process involves TSA pass scans and identification checks. Standby upgrades and same-day roundtrip check-in capabilities are expected in the future. Jun 18, 2008

Delta Air Lines flew 10.51 billion system RPMs in May, up 4.2% from the year-ago month. Capacity rose 1.5% to 12.67 billion ASMs, lifting load factor 2.1 points to 82.9%. It said RASM performance was "strong" and that it was "well positioned" to deliver on its summer revenue targets. Jun 16, 2008

Delta Air Lines' voluntary severance offer has been accepted by 4,000 employees, double the number of workers it originally planned to slash via the program. The carrier, which plans to cut domestic capacity by 10% year-over-year in the second half of 2008, said the workers accepting the severance offer will leave in the fall. Jun 16, 2008

Clear has partnered with Delta Air Lines to operate Fast Pass security lanes in the carrier's terminals at New York JFK, LaGuardia and Los Angeles. Agreement calls for enrollment centers to open in Delta Crown Room Clubs in Atlanta and for Clear Fast Pass program promotion to SkyMiles members and via Delta's website. TSA pre-screens members and application involves iris and fingerprint image processing. Members pay $128 annually and receive a card giving them access to designated security lanes. Clear Fast Pass lanes currently are operational at airports throughout the US, including such cities as Cincinnati, Denver, Indianapolis, Orlando, San Francisco and Washington. Jun 18, 2008

Delta Air Lines will allow Clear to open Registered Traveler enrollment stations in its Crown Rooms at Atlanta's Hartsfield-Jackson International Airport. The Atlanta airport, where Delta operates its largest hub, could get the new lanes in August. Jun 17, 2008

Delta Air Lines this week began testing a program that allows travelers to use electronic boarding passes. Tests began at New York's LaGuardia Airport and will expand to Atlanta by the end of 2008. Travelers will use use Web-enabled mobile phones and devices to check in online at mobile.delta.com Jun 17, 2008

United Airlines and Delta Air Lines both discussed the possibility of further cutbacks in capacity, jobs and other areas, even as Southwest Airlines Co. said it still sees modest growth through the coming year. The measures already taken by carriers to cut costs and raise additional revenue still aren't enough to cover fuel costs, and the Air Transport Association has said that the industry could lose as much as $13 billion this year. Jun 19, 2008

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