Delta Airlines 2014 Annual Report Download - page 33

Results of Operations - 2014 Compared to 2013
Operating Revenue
Passenger Revenue
Passenger revenue increased $2.0 billion , or 6% , over prior year. PRASM increased 3% and passenger mile yield increased 2% on 3% higher
capacity. Load factor was 0.9 points higher than prior year at 84.7% .
Our geographic regions generally performed well compared to the prior year, with the domestic region leading year-over-year unit revenue
improvement. Unit revenues of the domestic region rose 8% led by strong performances from our hubs in Atlanta, New York-LaGuardia and Seattle.
Revenues related to our international regions increased 3% year-over-year primarily due to 18% capacity growth in the Latin America region as a
result of our efforts to improve connections with GOL and Aeroméxico. GOL and Aeroméxico contributed a significant portion of the traffic from the
U.S. to Brazil and into key Mexico markets, respectively. Despite these contributions, Latin America unit revenues declined 2% as a result of the
capacity increase, some business demand weakness associated with the FIFA World Cup in Brazil and economic concerns in Venezuela. Atlantic unit
revenue increased 2% driven by yield improvements. While our joint venture with Virgin Atlantic reflected solid revenue growth, especially in
London-Heathrow, Atlantic yields experienced pressure from the impact of geopolitical and health concerns related to service to Africa, the Middle
East, and Russia. Our Pacific region experienced a 4% decline in unit revenues driven by lower yield, primarily due to the weakening of the Japanese
yen.
Other Revenue. Other revenue increased $ 580 million , or 15% , primarily due to an increase in sales of SkyMiles, settlements associated with our
transatlantic joint venture agreements and sales of non-jet fuel products to third parties by our oil refinery.
28
Year Ended December 31, Increase
(Decrease) % Increase (Decrease) (in millions) 2014 2013
Passenger:
Mainline
$
28,688
$
26,534
$
2,154
8
%
Regional carriers
6,266
6,408
(142
)
(2
)%
Total passenger revenue
34,954
32,942
2,012
6
%
Cargo
934
937
(3
)
—
%
Other
4,474
3,894
580
15
%
Total operating revenue
$
40,362
$
37,773
$
2,589
7
%
Increase (Decrease)
vs. Year Ended December 31, 2013
(in millions) Year Ended December 31, 2014 Passenger Revenue RPMs
(Traffic) ASMs (Capacity) Passenger Mile Yield PRASM Load Factor
Domestic
$
17,017
12
%
7
%
4
%
5
%
8
%
2.0
pts
Atlantic
5,826
3
%
—
%
1
%
3
%
2
%
(0.8
)
pts
Pacific
3,421
(4
)%
(1
)%
—
%
(
3
)%
(4
)%
(0.9
)
pts
Latin America
2,424
15
%
17
%
18
%
(2
)%
(2
)%
(0.7
)
pts
Total mainline
28,688
8
%
5
%
4
%
3
%
4
%
0.7
pts
Regional carriers
6,266
(2
)%
(2
)%
(4
)%
(1
)%
2
%
1.9
pts
Total consolidated
$
34,954
6
%
4
%
3
%
2
%
3
%
0.9
pts