Tuesday, December 15, 2009

Delta, Predicting $1.1B Loss for '09, Sees Recent Uptick in Business Travel Demand, Talks of Need For More Industry 'Consolidation'

Delta Air Lines today said it expected to lose $1.1 billion for this year, partly because of bad bets on fuel hedges earlier in the year.

Executives at Delta, which is now the world's largest airline, told an investors conference today that trends are improving. For example, the "volume" of tickets sold to corporate clients rose 15 percent in recent weeks, Delta said, according to this Reuters report. (That does not mean that revenue from those tickets rose similarly, however.)

And again, we're hearing the "consolidation" mantra, and this from the airline that swallowed Northwest. Consolidation will be the airline story of 2010.

Delta's CEO, Richard Anderson said "over time, more consolidation will help this business model evolve to a return on capital."

It will also raise fares and reduce choices, of course.


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