Overview: Delta Air Lines' second quarter earnings (Part 2 of 10)
Delta’s second quarter growth by segment
Delta’s second quarter revenue increased by 9.4% year-over-year (or YoY) to $10,621 in 2Q14 driven by a 9% growth in passenger revenue and a 14.7% growth in other revenue. Delta’s (DAL) passenger segment revenue accounted for 87% of the total operating revenue—similar to its legacy peers American (AAL) and United (UAL). For its low-cost peers, Southwest (LUV) and JetBlue (JBLU), passenger revenue makes up more than 90% of their total revenues. Unit revenue and yield increased by 5.7% and 3.8%, respectively, on a 3.2% increase in capacity.
Cargo revenue, accounting for 2% of Delta’s revenue, decreased in the first and second quarter. In spite of the higher volumes in 2Q14, cargo revenue decreased by $2 million because of lower freight yields.
Other revenue, which accounts for 10% of Delta’s revenue, includes revenue from its frequent flyer program, baggage fees, ticket change fee, and ancillary businesses such as aircraft maintenance, repair, and overhaul (MRO) services, staffing services provided to third parties, vacation packages provided by MLT Vacations, and private jet operations.
Browse this series on Market Realist:
- Part 1 - Must-know: Delta Air Lines’ second quarter earnings
- Part 3 - Must-know: Delta’s passenger revenue growth by region
- Part 4 - Why revenue drivers influenced the operating margin
- Airline Industry
- Delta Air Lines