(Adds American Airlines information to the first, second, fifth
and seventh paragraphs; updates trading information)
DOW JONES NEWSWIRES
Delta Air Lines Inc. (DAL) and AMR Corp.'s (AMR) American
Airlines reported slim traffic gains in March, while capacity
expansion resulted in emptier planes.
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. American's
data were on a moderate acceleration streak in the January and
February, but like Delta its pace also eased in March.
The monthly statistics from rival United Continental Holdings
Inc. (UAL), which overtook Delta as the world's biggest airline in
October, reveal the same deceleration 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%.
American Airlines said traffic was up 0.8% last month, while a
capacity increase of 2.6% led to a drop in load factor to 80.2%
from 81.7%.
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 the latest quarterly results, Delta swung to a profit and
said it expected earnings this year would improve despite the
rising cost of jet fuel. AMR narrowed its loss on higher revenue
driven by business travel and better fare trends.
Delta and AMR shares were both flat after hours. Delta closed
down 1.3%, at $9.70, while AMR fell 0.6%, to $6.23 Tuesday. In the
last year, both stocks have fallen, while the wider market has
gained.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291;
joan.solsman@dowjones.com