Delta Air Lines Inc. (NYSE:DAL) Revises FY13 Outlook
Delta Air Lines Inc. (NYSE:DAL), the Atlanta, Georgia based airline was the first among the major U.S air transport firms to release monthly passenger data for the month of December on January 3. The strong per passenger profits reported, sent the stock of this $25 billion market capped airliner soaring during trading on Friday. The airline stock posted a 5.5 percent increase in its share price during the day to end within a hairs breath from its prior 52 week high price point of $29.44. The closing price of the stock on Friday was $29.23. On the back of these numbers the firm announced strong forecast for its fourth quarter operations. This positive outlook by one of the largest aircraft operators in U.S sent the rest of the airline stock zooming upwards, hence resulting in the entire sector outperforming the Dow Jones and S&P 500 on the day.
December Passenger Data
Delta Air Lines (NYSE:DAL) per passenger unit revenue has posted an impressive 10 percent increase over the same period in FY12. This is being ascribed to a big build up in demand for airline tickets in the run up to and post the Thanksgiving weekend related travel across major sectors of U.S.
Strong Fuel Bill Management
Even more impressive was the efficiency with which the airliner has managed to keep a tab on its fuel bills, even as most of its competition has started to raise concerns about raising fuel rates. For the month of December, Delta Air Lines (NYSE:DAL) fuel bills came in 8 percent lesser than what it spent in December of 2012.The price management of aircraft fuel has been even more noteworthy since the company reported a dip in the fuel cost sequentially. It spent less on fuel in December this year in comparison to its spending on the same expense header in November 2013.
Upward Forecast for the Full Year
Delta Air Lines (NYSE:DAL) has forecasted that its “traffic and flying capacity” for the full year operations of FY13 would be 1% more than last year thus promoting analysts to strongly recommend to their clients to buy the stock.