DOW JONES NEWSWIRES
Delta Air Lines Inc.'s (DAL) traffic growth continued to abate
last month, while its active capacity expansion resulted in a sharp
drop in plane fullness.
Overall, carriers have been reporting improved traffic recently
as demand for air travel bounces back from the recession. However,
Delta's traffic growth has been slowing since October, when the
metric hit its post-recession apex of an 8.6% climb. The monthly
statistics from rival United Continental Holdings Inc. (UAL), which
overtook Delta as the world's biggest airline in October, reveal
the same trend, with traffic even declining slightly in February.
United Continental hasn't reported March data yet.
Tuesday, Delta said traffic rose 0.5% in March. As capacity
jumped 6.2%, Delta's load factor--a measure of plane
occupancy--fell to 79.7% from 84.2%.
Discount airlines haven't exhibited the creeping traffic
declines. Earlier Tuesday, AirTran Holdings Inc. (AAI) reported its
traffic growth gained momentum again in March, while its soon-to-be
parent Southwest Airlines Co. (LUV) has reported double-digit
percentage gains in traffic from November through February.
In its latest quarterly results, Delta swung to a profit and
said it expected earnings this year would improve despite the
rising cost of jet fuel.
Delta shares fell 1.2% to $9.71 in recent trading. The stock has
fallen 33% in the last year.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com