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Sun, Oct 05, 2008

Capacity Cuts Doing The Trick, Delta Says

Load Factors At Record High For September

Delta Air Lines reported record load factors for September 2008 last week, with system, domestic and Latin American results at an all-time high for the month of September over all of Delta's history.

"September unit revenues were in line with our expectations driven by strong yields in both domestic and international regions, as well as a higher consolidated load factor," said Glen Hauenstein, Delta's executive vice president of Network Planning and Revenue Management.

System capacity, decreased by 3.7 percent compared to September 2007, showed a load factor rise of 2.4 points to 80 percent, with only 0.8 percent lower traffic.

Similarly, lowering capacity on domestic flights 12.8 percent decreased domestic traffic only 8.0 percent, while yielding an increase of 4.3 points to a load factor 81.5 percent.

Delta has added more international capacity than any major U.S. airline during the last two years, and is the leader across the Atlantic with flights to 42 trans-Atlantic markets. To Latin America and the Caribbean, Delta offers 315 weekly flights to 43 destinations, according to company reports.

Delta's global expansion over the last year has increased capacity by 13.6 percent with an accompanying 12.8 percent gain in traffic, resulting in a load factor drop of only 0.6 percent.

"While the industry continues to face volatile fuel prices and an uncertain economic outlook, industry-wide capacity reductions are helping to drive unit revenue improvements. We continue to watch domestic and international demand closely and will move quickly to make adjustments to the network as the environment warrants," Hauenstein said.

FMI: www.delta.com

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