Delta Airlines 2012 Annual Report Download - page 37

Results of Operations - 2012 Compared to 2011
Operating Revenue
Passenger Revenue. Passenger revenue increased $1.6 billion , or 5% , due to an improvement in the passenger mile yield of 5% , on a 2%
decline
in capacity. Passenger mile yield and unit revenue increased due to fare increases, higher revenue under corporate travel contracts and improvements
in our products and services.
International mainline passenger revenue increased $520 million. In early 2011, we faced industry overcapacity in the transatlantic market and in
connection with our joint venture partners, AirFrance-KLM and Alitalia, we reduced capacity in underperforming markets during the second half of
2011 and in 2012. As a result, Atlantic PRASM was up 9% , driven by a 5% increase in yield on a 7% decrease in capacity. Pacific passenger
revenue increased 10% on a 3% and 6% increase in capacity and traffic, respectively. These results reflect Pacific market improvement, as demand
returned to levels seen prior to the March 2011 earthquake and tsunami in Japan. Latin America passenger revenue increased 8% on a 3% and 6%
increase in capacity and traffic, respectively.
32
Year Ended December 31, Increase
(Decrease) % Increase (Decrease) (in millions) 2012 2011
Passenger:
Mainline
$
25,237
$
23,843
$
1,394
6
%
Regional carriers
6,570
6,414
156
2
%
Total passenger revenue
31,807
30,257
1,550
5
%
Cargo
990
1,027
(37
)
(4
)%
Other
3,873
3,831
42
1
%
Total operating revenue
$
36,670
$
35,115
$
1,555
4
%
Increase (Decrease)
vs. Year Ended December 31, 2011
(in millions) Year Ended December 31, 2012 Passenger Revenue RPMs
(Traffic) ASMs (Capacity) Passenger Mile Yield PRASM Load Factor
Domestic
$
14,050
7
%
1
%
—
%
6
%
7
%
0.8
pts
Atlantic
5,645
1
%
(4
)%
(7
)%
5
%
9
%
2.8
pts
Pacific
3,645
10
%
6
%
3
%
3
%
7
%
2.6
pts
Latin America
1,897
8
%
6
%
3
%
1
%
5
%
2.7
pts
Total mainline
25,237
6
%
1
%
(1
)%
5
%
7
%
1.7
pts
Regional carriers
6,570
2
%
(4
)%
(5
)%
7
%
8
%
0.7
pts
Total passenger revenue
$
31,807
5
%
—
%
(
2
)%
5
%
7
%
1.7
pts