Tomahawk, WI 07/24/2014 (Basicsmedia) – Second Quarter Sees Profits
The third largest airline company, Delta Airlines, Inc. (NYSE:DAL), posted 17% rise in the second quarter earnings. The chunk of profit came from domestic air traffic and corporate contracts. Every flight of Delta was made sure to be filled by as many passengers it could plan for. Average flight capacity was about 90% and additional flights were optimized for the same. Revenues also poured in from increased average fare per mile and extra fees charged to passengers for luxury bookings. The net income increased to $801 million this year’s second quarter compared to $685 million in same quarter of previous year.
Caution over Ukraine
Though delta does not operate flights over the Ukrainian airspace, it is doing all it can to be away from the current crisis of Malaysian Airlines Flight 17 that was shot down in Ukraine. Delta is sticking to the U.S Federal Aviation Administration advisory and does not want to have code sharing with any other flights that might end up using Ukrainian airspace. The Malaysian Airline Flight 17 did not have a code share with Delta.
Optimizing Crude Oil Consumption
Delta Airlines, Inc. (NYSE:DAL) has big plans to optimize its cost of fuel consumption by relying on domestically produced crude oil rather than exported one. It has entered into a landmark deal with a Texas based company, Bridger LLC that would provide 65K barrels of crude oil per day to Delta’s Pennsylvania refinery. The domestic oil would come from the North Dakota’s Bakken oil fields. With other domestic sources, Delta aims to have a minimum supply of 70K barrels per day to its refinery.
In new unseen trend, Delta and the Alaskan Airlines (NYSE:ALK) are battling out at Seattle Tacoma International Airport to make it their Hub. Investors are worrying about such a situation as build up of flights at the airport may put pressure on Alaskan Airlines operations and its profits. Delta Airlines, Inc. (NYSE:DAL) is well positioned and aims to add 95 flights to various destinations from Seattle while Alaska has 285 flights from here a day all in North America. Alaskan Airlines nearly controls half of the air traffic at Seattle and has added flights to Hawaii and the eastern U.S. The two airlines are giving similar deals and mileage credit point to their passengers. The Airlines are now overlapping on primary routes and will be interesting to see how the business shapes for them at Tacoma.