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Old Feb 13, 2013, 12:53 pm
  #3711  
grahampros
 
Join Date: Dec 2006
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Originally Posted by FWAAA
In fact, the publicly available data show that Delta does not get any additional significant revenue per mile above AA's levels despite DL's perceived stinginess with frequent flyer benefits.

In the aggregate, DL's mainline yield last year was all of $.0005/mi higher than AA's mainline yield. In the aggregrate, that yield differential was worth just $85 million to Delta. DL's 2012 pre-tax, pre-profit-sharing profits of well over $2 billion were driven by lower costs and DL's superior regional jet revenues (where AA should begin to catch up with the expansion in 2-class large RJs).
Yield while useful for directional changes ( ie given carrier's yield increases and DL's has quite significantly improved over the last few years while AA's has not) is not an apples to apples comparison between airlines. Various network difference and relative stage lengths have a big impact on yield, so highest yield in of itself is not a direct indicator of profitability. PRAMS is the most accurate method to determine flight profitability, not yield. AA's yield use to be well above DL's but not anymore given DL's very large improvements in that area.

Last edited by grahampros; Feb 13, 2013 at 1:02 pm
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