Do you think Delta will increase capacity, frequency soon?
Feb 8, 2012, 8:01 pm
#1
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Join Date: Feb 2012
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Do you think Delta will increase capacity, frequency soon?
We've all seen how the airlines cut flights and moved down to smaller aircraft for the flights that have remained since the recession. But now that things have seemed to have recovered, how long before these things are reversed? Here we are in the low travel period and I am seeing every flight now full and I think the demand is back for more seats and more flights. Has anyone heard anything?
Feb 8, 2012, 8:30 pm
#2
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It will come back slowly. I can not see any airline rushing to increase capacity just yet. The world economy is still too fragile. The Greek crisis is still not over etc.
Feb 8, 2012, 8:33 pm
#3
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Agreed. More paid F and full-fare Y = bigger profit. Flights are more full than ever and profits are showing it. I personally don't see why DL would want to increase capacity and have to potentially lower fares if demand doesn't keep up. Hopefully someday, though!
Feb 8, 2012, 9:50 pm
#4
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Delta is making a profit with capacity as is. I do not see them increasing substantially and potentially eroding their profitability. Also, as mentioned, with the PIGS being financially uneasy, it's still probably not the best time to add capacity. But what do I know 
Feb 8, 2012, 10:59 pm
#5
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Well, according to reports, the future of air travel is expected to increase in the years to come. With so many airports expanding, adding runways and gates, its only a matter of time until capacity increases.
http://airportsandairplanes.wordpres...enger-by-2014/
http://airportsandairplanes.wordpres...enger-by-2014/
Feb 8, 2012, 11:27 pm
#6
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Well, according to reports, the future of air travel is expected to increase in the years to come. With so many airports expanding, adding runways and gates, its only a matter of time until capacity increases.
http://airportsandairplanes.wordpres...enger-by-2014/
http://airportsandairplanes.wordpres...enger-by-2014/
Feb 9, 2012, 4:29 am
#7
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Planned changes to capacity by region are routinely discussed at investor presentations. It seems DL management does not share your belief that a lot more capacity is needed.
http://www.delta.com/about_delta/cor...presentations/
http://www.delta.com/about_delta/cor...presentations/
Feb 9, 2012, 5:43 am
#8
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Not Soon
The 2012 investor presentation stated that Delta plans to cut capacity an additional 2-3% in 2012. Further, Delta's passenger traffic was down in Oct., Nov.,Dec. 2011, and now Jan. 2012, no capacity increase soon.
Feb 9, 2012, 5:44 am
#9
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Why would DL want to increase capacity? Through consolidation and reduced competition, they have been able to raise prices and reduce staff. Increasing capacity also increases your cost structure and raises the potential for higher losses when the next slowdown occurs. They are happy as can be.
Feb 9, 2012, 7:27 am
#10
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Primarily in Asia. As a result, I'm not sure I see too much increase in capacity for DL. Perhaps in LATAM, and maybe to a small extent TPAC, but not domestically and not TATL. Now that many companies (including airlines) have been forced to operate on a much leaner basis because of the economic downturn, I don't really expect them to forget how to do this anytime soon, because the results have actually been quite good. Expect to see continued right-sizing and high load factors.
Feb 9, 2012, 1:07 pm
#11
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South America has a lot of promise, but AA, LAN, JJ and others have significant advantages over DL. The Caribbean is a marginal market left wide open by AA's cutbacks, it would make a decent and flexible dumping ground for any excess DL capacity that would otherwise go to waste.
Feb 9, 2012, 2:25 pm
#13
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If anything, I've seen domestic capacity continue to shrink in the last few months. Instead of 757s, we now get MD88s, and instead of MD88s we get CRJ-900s. Not to mention that the retrofitting of all the older aircraft to include EC domestically further reduces the number of seats going out on each route.
The quotes from DL management seem to back up this observation.
The quotes from DL management seem to back up this observation.
Feb 9, 2012, 7:20 pm
#14
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Recently the MSP to DCA Sunday evening flight went down to a 48 seat plane (forgive me for not knowing model numbers). This is ridiculous for a popular flight for business travel. And of course it was packed and of course everyone had to gate check their roll on.
I know the airlines are finally profitable because of such moves, but it really makes a miserable time to be an air traveler. Fewer flight choices and higher prices. It's really bad for those of us flying out of expensive markets like MSP.
I know the airlines are finally profitable because of such moves, but it really makes a miserable time to be an air traveler. Fewer flight choices and higher prices. It's really bad for those of us flying out of expensive markets like MSP.
Feb 9, 2012, 11:21 pm
#15
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Recently the MSP to DCA Sunday evening flight went down to a 48 seat plane (forgive me for not knowing model numbers). This is ridiculous for a popular flight for business travel. And of course it was packed and of course everyone had to gate check their roll on.
I know the airlines are finally profitable because of such moves, but it really makes a miserable time to be an air traveler. Fewer flight choices and higher prices. It's really bad for those of us flying out of expensive markets like MSP.
I know the airlines are finally profitable because of such moves, but it really makes a miserable time to be an air traveler. Fewer flight choices and higher prices. It's really bad for those of us flying out of expensive markets like MSP.
The MSP-DCA Sunday evening schedule comprises almost exclusively MD-90s, with a rare handful of CR9s thrown in for a few odd weeks. The smallest equipment scheduled on the route is a CR7 (79 seats), which makes an appearance on two Saturday 5:30 PM flights, February 18 and 25.