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Lots of juicy tidbits from the Delta Investor Day webcast and associated 58 slide PowerPoint presentation from earlier this month:
- 2014 marks the first time since DL committed to “winning in NYC” that the JFK/LGA hubs are profitable on a segment basis.
- The T4 extension at JFK will open in January and RJ gates at T2 will be converted back to mainline gates.
- Changes at the Narita (NRT) hub are required in order to stay profitable. Capacity will continue to shift from NRT to Seattle (SEA), with a decrease of intra-Asia routes from 12 to 5 since 2009. Complete retirement of the 747 fleet by 2017.
- A whopping 80% of customers looking to book Economy end up buying one of Delta’s main cabin upgrade products rather than the bare bones economy fare.
- Unit revenues to LHR are significantly up. The Virgin Atlantic joint venture in 2014 accounted for $125M-$150M profit with increases expected in 2015.
- LAX was formally referred to as a DL hub numerous times throughout the webcast. “Significant investment to make LAX a key DL gateway” despite the growing SEA hub.
- The new Seattle (SEA) domestic operation is surprisingly already profitable (no mention of international profitability, which I assume means it is not yet). Delta has plans to triple their Seattle gates in the future with potentially up to 240 flights a day.
- Stellar maintenance and completion factor days compared to prior years and the domestic competition – 151 days with NO mechanical cancelations and 84 days in 2014 with 100% completion.
Related – Delta Seeks to Boost Asia Hub With Plan to Triple Seattle Gates and Why Delta Plans to Realign its Capacity in the Pacific Region
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3 comments
“The T4 extension at JFK will open in January and RJ gates at T2 will be converted back to mainline gates.” Huh?
@Gene – I think and hope that means those horrible hardstand bus gates are going away. Particularly frustrating on flights from Canada to be dumped into T2 then bused all the way to T4 for immigration.
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