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.
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