DELTA Air Lines' third-quarter cargo revenue was a microcosm of the cargo industry for 2023: trending down most of the year and lower than last year's rare record but still comfortably stronger than in 2019 - the benchmark for normalised economic times.
The Atlanta-based carrier said cargo revenue in the September quarter was US$240 million, up 27 per cent from 2019. On a sequential basis, revenue from cargo operations was $32 million less than in the second quarter and $49 million below the first-quarter total. Year-over-year cargo performance was down 8.4 per cent for the third quarter.
But for the first nine months of the year, Delta's cargo revenue was 10 per cent better than in 2021 and 41 per cent improved than three years ago, American Shipper reported.
Airfreight volumes across the industry are down about 14 per cent year on year, while spot rates are down an average of 10 per cent to 20 per cent as capacity has improved with the return to service of more international flights.
Delta's overall third-quarter performance suggested that travel demand didn't tail off as expected, with the return to schools and office work. CEO Ed Bastian said the travel surge appears to be sustained and not a one-time, post-pandemic reaction.
The airline posted record adjusted operating revenue of $12.8 billion, 3 per cent higher than in 2019, and operating profit of $1.5 billion despite a $35 million hit from Hurricane Ian, record fuel prices and 17 per cent lower passenger capacity than before the pandemic. Operating margin was 11.6 per cent.
It was the second consecutive quarter of double-digit operating margins. delta also offered positive guidance that fourth-quarter revenue would outpace 2019 levels, increasing profits.
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The Atlanta-based carrier said cargo revenue in the September quarter was US$240 million, up 27 per cent from 2019. On a sequential basis, revenue from cargo operations was $32 million less than in the second quarter and $49 million below the first-quarter total. Year-over-year cargo performance was down 8.4 per cent for the third quarter.
But for the first nine months of the year, Delta's cargo revenue was 10 per cent better than in 2021 and 41 per cent improved than three years ago, American Shipper reported.
Airfreight volumes across the industry are down about 14 per cent year on year, while spot rates are down an average of 10 per cent to 20 per cent as capacity has improved with the return to service of more international flights.
Delta's overall third-quarter performance suggested that travel demand didn't tail off as expected, with the return to schools and office work. CEO Ed Bastian said the travel surge appears to be sustained and not a one-time, post-pandemic reaction.
The airline posted record adjusted operating revenue of $12.8 billion, 3 per cent higher than in 2019, and operating profit of $1.5 billion despite a $35 million hit from Hurricane Ian, record fuel prices and 17 per cent lower passenger capacity than before the pandemic. Operating margin was 11.6 per cent.
It was the second consecutive quarter of double-digit operating margins. delta also offered positive guidance that fourth-quarter revenue would outpace 2019 levels, increasing profits.
SeaNews Turkey
