Delta Air Line’s cargo division third-quarter results overall were strong, despite the overall airline recording an increased profit.
The US airline saw its cargo revenues decline for the second quarter in a row, dipping by 19.7% on a year earlier to $196m, following a 10% drop in the prior three months.
Ed Bastian, Delta’sAir Line President stated “Our cargo business is facing a similar dynamic to our passenger business, with domestic performing well, while the international business is facing significant currency and related demand headwinds,”
Although the cargo performance was not discussed in the release that accompanied the results, overall revenues at Delta also showed a small decrease because of currency volatility and global economic uncertainty.
Delta also mentioned that its adjusted fuel expense for Q3 declined by more than us$ 1.1 billion, compared to the same period last year, as 50 percent lower market fuel prices and an us$ 87 million increase in profit at the refinery offset us$ 250 million in settled fuel hedging losses.
Delta is the first of the big U.S. airlines to report third quarter earnings, and though cargo has become a less important revenue driver, carriers are seeking incremental business because of weakness in yields from their core passenger business.