Delta Airlines earnings beat expectations, but cargo revenues fall

23/07/2014

Delta Airlines has reported its June results showing cargo revenue down by $2m, on the back of weakened yields, it said. It will be interesting to see how its cargo arm fares once its new structure is fully implemented, which will see cargo operations folded into passenger divisions. Overall operating profit for the carrier rose 17%, beating analysts’ expectations. Boeing, meanwhile, saw higher revenue following a rise in commercial sales.

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John Batten
July 23, 2014 at 7:13 pm
It is an interesting gamble Delta are playing with here and one that is
doomed to fail. If the results are down USD 2.0m in such a short period
the passenger sales force who know nothing about cargo will achieve
greatness by the end of the year with revenues down USD 15.0m.

Don’t panic, passenger sales will blame the old cargo management and
the flawed business plan for the next 12 months and then hopefully senior
management will realise it was a dumb decision. The real test in this
exercise is do senior management have the guts to publicly say it was a dumb
move in the first place, I doubt it…

Regards,

BJ

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