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Delta sees year-over-year cargo decrease

By control on July 31, 2012

Delta experienced a 1 percent decline, year-over-year, in cargo revenue during the second quarter of 2012. For the first six months of the year, Delta's cargo activity was also relatively flat, amounting to a 2-percent decrease in revenue when compared to the same period in 2011.

According to a company press release, these modest decreases were due to lower cargo yields, which were offset by higher freight volumes. Year-over-year, passenger revenue rose 7 percent on the strength of a 6.8-percent increase in yield. Most of the passenger increase came from activity in the Pacific, where Delta saw a 20-percent boost in revenue. In comparison, domestic passenger revenue only increased 7 percent, with Atlantic revenue rising 1 percent.

"Delta's revenue performance in the June quarter was among the best in  the industry as we experienced benefits from our customer-focused  initiatives, corporate sales growth, and capacity discipline," Delta's president, Ed Bastian, said in a statement.  "By actively managing the business through capacity  reductions and pricing actions, we expect to maintain our solid revenue  performance despite the continuing uncertain economic backdrop."

Though fuel prices of $3.37 per gallon were a factor in reducing revenues, Delta officials expect to benefit from average prices of less than $3.10 for the rest of the year. Increases in employees wages also impacted Delta's expenses during the quarter.

Comments

Submitted by Tommy C on
I can tell you why Delta's cargo has decreased, it's simple. They have poor customer service. Try calling in and tracing a shipment or question what's going on with your MAWB. I'm currently experiencing an issue where we dropped freight four hours before flight departure and I'm being told that because of a shift change, my freight will not make it on the flight I booked. It's these kind of issues that need to be corrected in order to sustain service.

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