Delta’s cargo division continues decline

While Delta Air Lines’ third-quarter results overall were strong, with US$2.2 billion in pre-tax income and an increase of $547 million, year-over-year, the carrier’s quarterly cargo numbers were down sharply. For the quarter ended Sept. 30, the carrier reported a 19.7 percent drop, year-over-year, in cargo-related operating revenue,  to $196 million, compared to $244 million one year ago. “Our cargo business is facing a similar dynamic to our passenger business, with domestic performing well, while the international business is facing significant currency and related demand headwinds,” explained Delta’s president, Ed Bastian.

Delta’s year-to-date operating revenue for the cargo division also fell, y-o-y, but to a lesser extent. For the nine months ending Sept. 30, the cargo division reported operating income of $620 million, a 10 percent decline, compared to the same nine-month period last year.

Delta also mentioned that its adjusted fuel expense for Q3 declined by more than  $1.1 billion, compared to the same period last year, as 50 percent lower market fuel prices and an $87 million increase in profit at the refinery offset $250 million in settled fuel hedging losses.

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