Delta Airlines 2011 Annual Report Download - page 34

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Results of Operations - 2011 Compared to 2010
Operating Revenue
Year Ended December 31, Increase
(Decrease) % Increase
(Decrease)
(in millions) 2011 2010
Passenger:
Mainline $ 23,864 $ 21,408 $ 2,456 11%
Regional carriers 6,393 5,850 543 9%
Total passenger revenue 30,257 27,258 2,999 11%
Cargo 1,027 850 177 21%
Other 3,831 3,647 184 5%
Total operating revenue $ 35,115 $ 31,755 $ 3,360 11%
Increase (Decrease)
vs. Year Ended December 31, 2010
(in millions) Year Ended December 31, 2011 Passenger Revenue RPMs (Traffic) ASMs (Capacity) Passenger Mile Yield PRASM Load Factor
Domestic $ 13,129 11% — % (1)% 11% 11% 0.4 pts
Atlantic 5,590 9% (1)% 2 % 10% 7% (2.1) pts
Pacific 3,368 20% 4 % 10 % 15% 9% (4.7) pts
Latin America 1,777 13% — % — % 13% 13% (0.6) pts
Total mainline 23,864 11% — % 1 % 11% 10% (1.0) pts
Regional carriers 6,393 9% (2)% (2)% 12% 12% 0.1 pts
Total passenger revenue $ 30,257 11% — % 1 % 11% 10% (0.9) pts
Mainline Passenger Revenue. Mainline passenger revenue increased primarily due to an improvement in the passenger mile yield from fare increases
implemented in response to higher fuel prices and from higher revenue under corporate travel contracts.
•Domestic. Domestic mainline passenger revenue increased 11% due to an 11% improvement in PRASM on a 1% decline in capacity. The
improvement in PRASM reflects higher passenger mile yield driven by fare increases.
•International . International mainline passenger revenue increased 13% due to a 9% improvement in PRASM on a 4% capacity increase. Passenger
mile yield increased 12% , reflecting increased business and leisure travel and increased fares, including fuel surcharges. Atlantic passenger revenue
increased 9% due to a 7% increase in PRASM. We and the industry faced overcapacity in the Atlantic, particularly in early 2011, which prevented us
from increasing ticket prices sufficiently to cover higher fuel prices. Pacific passenger revenue increased 20% on a 10% capacity increase. Pacific
passenger mile yield increased 15% due to a stronger revenue environment, partially offset by the negative impact from the March 2011 earthquake
and tsunami in Japan. Latin America passenger revenue increased 13% , benefiting from a 13% higher passenger mile yield driven by fare increases.
Regional carriers. Passenger revenue from regional carriers increased 9% due to an 12% improvement in PRASM on a 2% decline in capacity. Passenger
mile yield increased 12%, reflecting fare increases we implemented in response to increased fuel prices.
Cargo. Cargo revenue increased 21% due to a 12% improvement in yield and an 8% increase in volume.
Other. Other revenue increased $210 million due to higher maintenance sales to third parties by our MRO services business and $65 million due to an
increase in the volume of ticket change fees. These increases were partially offset by $90 million in lower baggage fee revenue, resulting from an increase in
bag fees waived for premium customers and customers under our co-brand credit card agreement with American Express.
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