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Delta projects strong 3Q despite cargo slump

Airbus A321 [Photo Credit: Delta]

[Editor’s Note: The photo has been updated to reflect a plane currently in service]

Delta Air Lines’ [NYSE: DAL] cargo volume fell 10.5% in September to 167.8 million freight ton miles, in line with the year-to-date fall of 9% to 1.5 billion freight ton miles, the Atlanta-based carrier reported on Oct. 2.

The company is on track for 15.5% pre-tax profit margins in the third quarter, up about 1.75% from  the same period a year ago, it said in an investor update. Total revenue for the quarter ending in September is expected to be up 6.5%, in line with initial guidance provided in July.

Non-fuel costs for the quarter are expected to be up about 2.5% year-over-year, compared to 1% in the guidance, because of employee costs, record passenger volumes and weather. For the full year, non-fuel unit costs are now expected to be up approximately 2% including anticipated fourth-quarter pressure from changes to actuarial assumptions, employee wage increases and maintenance timing, Delta said.


Officials have previously said that increased passenger volumes, partly due to other airlines canceling flights scheduled with now-grounded Boeing 737 MAX jets, took a toll on Delta’s system and forced it to pay workers more overtime to keep operations running smoothly.

Delta carried almost 16.5 million passengers in September, an 8% increase from a year ago, with a load factor of 85%. Passenger boardings are up 6.2% year-to-date to 154.2 million. Revenue passenger miles, a basic industry measurement, are up 7% to 114.4 billion.

Delta reports earnings on Oct. 10. The stock was down 6% to $53.56 in mid-day trading on Oct. 2, due in part to concerns about Delta’s higher costs.


Air cargo volumes have been in decline for the entire industry since December.


Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, he was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at [email protected]