Delta Q2 cargo revenue up 25 percent
Despite an onslaught of economic challenges, including sky-high fuel prices, Delta Air Lines posted considerable growth in the first half of 2011. In addition to a 13-percent surge in passenger revenue, the U.S. carrier also revealed cargo numbers worthy of the record book, with airfreight revenue increasing by $53 million.
Delta’s year-over-year revenue growth for the second quarter of 2011 was 12 percent higher than 2010 averages, according to company officials. The Atlanta-based airline also announced a net income of $366 million during this period, with traffic increasing by 1 percent on a 2.5-percent capacity surge.
Delta CEO Richard Anderson contributes much of the growth to being proactive. “High fuel prices are putting significant pressure on the industry, but the benefits of Delta’s strategic actions and the dedication of Delta employees are evident in the solid profit we produced despite more than $1 billion in higher fuel expense," he said in a statement.
To compensate for rising fuel prices, Delta increased fares and added fuel surcharges. The airline also reduced international and domestic capacity and retired older, less-fuel-efficient aircraft.
Ed Bastian, Delta’s president, believes these actions will bring his company continued success in the second half of 2011. “Right-sizing our capacity, coupled with pricing initiatives and revenues from new products and services, position us well to continue to generate solid unit revenue improvements for the September quarter,” he stated.
In the video below, Delta Cargo's Dave Paule talks about some of the activity that will help boost the carrier's profits.